Moscow Against Changes in IMF Rules to Provide Kiev With Next Loan Tranche

Russian authorities oppose any changes that could be made at the International Monetary Fund’s (IMF) rules of loans' allocation on the grounds of specific political situation, Kremlin spokesman Dmitry Peskov said Monday commenting on the loan tranche that could be provided to Kiev.

MOSCOW (Sputnik) — The IMF will discuss the allocation of the next loan tranche to Ukraine on its executive board meeting on Wednesday despite Kiev's sovereign debt in arrears. On Monday, Russian Finance Minister Anton Siluanov said that Russia would vote against the third IMF tranche for Ukraine.

"As for the tranche, the situation here is obvious. Moscow has consistently opposed and will oppose any modification of the rules of disbursement of new tranches for specific situations, for up-to-the-minute political situation, what in fact we can see in the case of Ukraine," Peskov said speaking about the Kremlin's position in regard to the IMF tranche.

He added that the Kremlin's position in regard to Ukraine's debt had not changed and of its sovereign nature.

Ukraine heavily relies on foreign aid to support its economy and to pay debts amid the ongoing armed conflict with independence supporters in the country's southeast.

On March 11, 2015 the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5 billion loan over the next four years. The Ukrainian government has to implement new economic policies for the IMF to disburse the funds.

According to the IMF rules, the country is denied aid unless it settles its debts with the loaners in a good faith. Moscow filed a lawsuit against Ukraine in the London High Court in February after Kiev defaulted on repayment of a $3-billion loan that Russia granted to Ukraine in 2013 under the former Ukrainian president Viktor Yanukovych.