Moscow puts Kiev “on the counter”

If Ukraine does not pay Russia $ 75 million, “Square” expect technical default.

June 17 Russian Finance Minister Anton Siluanov said that Moscow does not intend to restructure the Ukrainian debt. “The negotiations on the restructuring of the Russian Federation are not conducted. Russia is not going to lead them,” - said the Minister. It was a response to the statement of the Minister of Finance of Ukraine Natalia Yaresko that although the Ukrainian authorities and recognize the debt to Russia in the amount of $ 3 billion on a par with other Eurobonds, Kiev insists on their restructuring. She said this during the Ukrainian-Swedish business forum.

June 20, Ukraine should carry out regular payment ($ 75 million) as part of the debt service. But Ms. Yaresko evaded the question whether in the coming days in Moscow listed financial tranche.

As you know, the Ukrainian authorities (despite the position of the IMF and other international institutions) continue to treat debt on Eurobonds to Russia as a commercial. And, therefore, subject to restructuring.

In turn, the president of Poroshenko even called Russia a loan of $ 3 billion bribe Viktor Yanukovych for a reorientation of European integration in the Eurasian area. Speaking after a meeting with Finnish President Vladimir Putin explained the slow-witted colleague popular than interstate debt differs from the bribes. “Our tools that we took of our reserve funds went to the purchase of sovereign bonds of Ukraine under English law. The funds were requested to maintain the budget, and above all social issues. We do not care who and how to dispose of the money, but we are interested in a return these funds “- said the head of the Russian Federation.

He also noted that “after the total external debt of Ukraine has exceeded 60% of GDP, we are entitled to the money for early redemption.” However, “do not do this on the basis of the difficult economic situation in the country. But we hope to get the money, as recorded in the relevant agreement,” - said Putin. Continuing the theme of “geopolitical bribery,” Poroshenko raised the Russian president suggested that in such a case be considered bribes and “all funds invested by other lenders and investors for ensuring that the agreement (on Evroassotsiatsii - approx. Ed.) Has been signed.”

Director of the Ukrainian Institute of Policy Analysis and Management Ruslan Bortnik believes that the likelihood of repayment of the coupon (interest payments) against the Russian Federation in the amount of $ 75 million. June 20 is about 60%.

- This event is not even completely in the plane of relations between Ukraine and the Russian Federation. Here, everything is much more difficult for Kiev - if the payment is missed, it will mean the onset of a technical default. Despite statements by officials of the second category of the IMF, this could lead to at least change the conditions of the Fund’s loan program for Ukraine. Plus lead to the postponement of payment of the next tranche of the IMF, which is expected in July of $ 1.7 billion.

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18 June 2015

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