Russia has sued Ukraine over the $3 billion debt which the Kiev failed to pay in December. The action follows after a failed restructuring on the debt.
Russian Finance Minister Anton Siluanov said that Ukraine's $3 billion debt remains unsettled despite their attempt to encourage Ukraine to talk on debt restructuring. The two nations didn't agree on terms as Moscow wanted to label the debt as sovereign with structuring terms. However, Ukraine wanted to settle the debt of its private creditors, RT reports.
"I think the hearing in the English court will be open and transparent, and the protection of the rights of the Russian Federation as a creditor will be carried out by an independent, authoritative court, which will impartially consider the dispute between the two sovereign states regarding debt default on Eurobonds," Siluanov said. He added, Russia is willing to settle Ukraine's $3 billion debt out of court but "Ukraine was not ready to negotiate in a spirit of good will."
Russia lent Ukraine $3 billion Eurobond late 2013 before pro-Russian president Viktor Yanukovych was eliminated from his position, according to BBC. In December, Russian president Vladimir Putin ordered Siluanov to sue Ukraine if it fails to repay the $3 billion debt on Dec. 20. Putin gave Kiev a grace period of 10 days. However, Ukraine wasn't able to repay the loan and it insisted on a moratorium on the repayment. A month after, Russia's Finance Ministry claimed that Ukraine is in a state of default.
Siluanov stated that he hopes that the case of Ukraine's $3 billion debt will be dealt in London court fairly and unbiased through transparent proceedings, FT claims. Late last year, Russia has offered a settlement to Ukraine for repayment of the loan. Putin offered yearly debt repayment of $1 billion over the course of three years provided that the West has guarantees. However, Ukraine didn't agree with the offer.
Russia and Ukraine are having tensions over the recent years. Apart from Ukraine's $3 billion debt, the two nations are fighting over commerce and gas supplies. Kiev is also suspecting that Moscow is behind arming and helping separatist rebels in Eastern Ukraine, which Russia has vehemently dismissed.
