09:30 GMT +317 October 2019
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    Finance Minister Anton Siluanov

    Russia to Demand Ukraine Pay Off $3Bln Debt in Full in December

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    Russian Finance Minister Anton Siluanov said that Moscow will require Ukraine to repay the whole sum of $3 billion Moscow invested in its Eurobond by the end of 2015.

    MOSCOW (Sputnik) —  Russia will insist that Kiev pays off the whole sum of $3 billion Moscow invested in its Eurobond in December and is planning to spend the money on the development of the country’s infrastructure, Russian Finance Minister Anton Siluanov said on Thursday.

    "We need to develop our economy, we need to invest in the infrastructure, so the refund we are to get at the end of the year, these funds will be spent on infrastructure development of the Russian economy in the years to come," Siluanov said in an interview with Rossiya-1 TV channel.

    At the end of 2013, Russia purchased Ukraine’s sovereign debt eurobonds worth about $3 billion. Ukraine is required to repay the full amount by the end of 2015.

    Earlier in the day, Ukrainian Prime Minister Arseniy Yatsenyuk said Kiev had agreed with its creditors to write off 20 percent, or nearly $4 billion, of its sovereign debt as well as ruling out the prospect of a default. He added that Russia, which has not joined the creditors committee on Ukraine, will not be granted more favorable terms than Kiev's other lenders.

    Ukraine's economy has deteriorated since an armed conflict between government forces and independence supporters in the country's southeast erupted in April 2014.

    The Ukrainian national currency, the hryvnia, has dropped in value several times since then, leaving the country on the brink of default.

    Ukraine’s overall debt stands at roughly $70 billion, of which some $40 billion is owed to international money creditors, according to the country's finance ministry.

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    Anton Siluanov, Ukraine, Russia
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