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Russia says Ukraine defaulted on $3 billion Eurobond

In November 2013, Ukraine’s then pro-Kremlin president Viktor Yanukovych rejected the association agreement, triggering pro-European protests that led to his downfall and eventually to the armed conflict in eastern Ukraine, which has left more than 9,000 people dead. Ukraine also saw a 20 percent decline in industrial production, largely because the factories in the east stopped working.

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Brovko added that the arrival of European products on Ukraine’s would not necessarily dampen demand for Ukrainian goods.


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Russia will file a lawsuit against Ukraine after Kiev failed to repay a $3 billion (£2 billion) Eurobond and $75 million of interest by December 31, the Russian finance ministry said late on Thursday.


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“As a outcome of Ukraine’s payment default…a formal legal complaint against Ukraine will soon be filed in an English court”, said a statement from the Russian finance ministry.

Moscow however, maintains that the loan can not be considered private debt and has refused such conditions.

The following day Russian Federation cancelled a free-trade agreement and imposed new trade restrictions against Ukraine.

The dispute has been hampering the International Monetary Fund’s $17.5-billion rescue plan for Ukraine, which restricts Kiev’s ability to restructure billions of dollars in debt.

Meanwhile, Russia closed its borders to Ukrainian food imports on Friday.

Ukrainian Prime Minister Arseniy Yatsenyuk has put the cost of Moscow’s measures to his country at some $600 million.

Ukraine will investigate a cyberattack on its energy grid, the energy ministry said Thursday, an event that the country’s security service believes originated in Russia, Reuters reports.

He said President Vladimir Putin had ordered an opinion poll to be conducted among Crimeans asking if they agreed to be considered part of Ukraine or would accept “temporary difficulties” for three or four months if a new contract with Ukraine were not signed.

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However, sporadic outbreaks of violence continue and a Ukrainian soldier and two civilians were killed in fighting on December 27 despite the truce.

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