Russian Federation made a surprise proposal Monday to restructure Ukraine’s$3 billion debt coming due next month, offering a potential solution to a standoff that has threatened to complicate an global bailout of Ukraine.
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Moscow has insisted that Ukraine repay by December the $3 billion it issued to Russian-backed president Viktor Yanukovych ahead of pro-European protests that led to his ouster in February 2014. “I said that we are ready to embark on a more profound restructuring, ready to not receive any money at all this year, but receive a billion next year, another billion in 2017 and another billion in 2018”, Putin said. He has offered to spread the $3 billion payment out over the next few years – a restructuring, but less severe than what private bondholders have accepted. “The details would now need to be discussed between the Russian authorities and the Ukrainian authorities”.
In August, the Ukrainian government and a group of its worldwide creditors have reached an agreement, which envisages a 20-percent write-off of Kiev’s outstanding foreign debts and a 4-year extension of the loan repayment period. And Putin, facing a potentially long recession, is interested in getting Western sanctions eased when they come up for renewal early next year.
“Unfortunately, we have not received any offer, any official statement from the finance ministry, in particular, Russia”, Shevalev said.
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–Arkhipov reported from Antalya, Turkey.
