Russia filing lawsuit against Ukraine over debt default
The Russian Finance Ministry is filing a lawsuit against Ukraine for Kiev’s failure to pay off its USD 3-billion debt to Moscow by the end of December 2015.
The Russian ministry said on its website late on Thursday that it is suing Kiev as it is “in a state of default” regarding its obligations toward Moscow.
"A corresponding lawsuit will be filed in an English court in compliance with the established procedures," the ministry added.
The Russian Finance Ministry, however, stressed that Moscow will still be willing to work with Kiev to solve the problem, even after the lawsuit is filed.
The lawsuit comes upon an order by President Vladimir Putin.
Ukraine’s debt to Russia goes back to 2013 when Putin loaned USD 3 billion to the former Ukrainian President Viktor Yanukovych before the collapse of his government. The debt was supposed to be repaid by December 20, 2015.
After Yanukovich’s ouster, Ukraine’s Black Sea peninsula of Crimea rejoined the Russian Federation following a referendum in March 2014. Since then, Russia’s relations with the West and Ukraine have been strained. Ties soured further after Ukraine launched military operations in April 2014 to quell pro-Russia forces in the country’s eastern regions of Donetsk and Lugansk.
Last month, Ukraine's Prime Minister Arseny Yatseniuk said that his country would not repay the debt and that Kiev was ready to fight the issue in court.
Back in August 2014, Kiev reached a restructuring deal with its private creditors, including major banks, which agreed to reduce their claims by 20 percent.
Moscow, however, has refused such conditions, saying that the loan is not private but official country-to-country lending and outside the scope of Kiev's agreement with private creditors.
In November 2015, Putin offered a three-year restructuring plan for Kiev’s debt, provided that loan guarantees were made by the United States, the European Union or the International Monetary Fund.
Kiev’s pro-Western government rejected the offer.
Russia: New US aid for Ukraine will fail to change military situation
Tens of thousands displaced as floods engulf Kazakhstan, Russia
Russia: UN meeting on Iran retaliation ‘display of hypocrisy’
April 18: ‘Axis of Resistance’ operations against Israeli occupation
Blinken ignoring staff recommendation to cut US aid to Israel: Report
Report: Israeli warplanes bomb positions in southwestern Syria, Iraq
US forces smuggle stolen Syrian oil into bases in Iraq: Report
VIDEO | Press TV's news headline
Situation normal after air defenses fire at 'suspicious objects' in Iran
‘Iran retaliation against Israel ensured no aggression would go unanswered’
US vetoes Palestinian request for full UN membership
This makes it easy to access the Press TV website
