Ukrainian govt foresees funds to finance litigations with Russia in national budget – prime minister
The Ukrainian government has foreseen funds to finance litigations over the non-payment on $3 billion eurobonds bought by Russia in the 2016 national budget, Ukrainian Prime Minister Arseniy Yatseniuk said at the year-end press conference in Kyiv on Tuesday.
"The negotiations [with legal advisors] have been held, and the government has competent legal advisors. We're prepared for legal war with Russia over $3 billion. The budget foresees funds to finance legal advisors," he said.
As reported, in October 2015, following negotiations lasting for about half a year, the holders of 13 out of the 14 issues of Ukrainian eurobonds worth in total $14.36 billion and EUR600 million supported Ukraine's restructuring terms, which envision the exchange of 80% of the sum for new eurobonds, whose maturity has been extended by four years, and 20% for state derivatives, the payments on which in 2021-2040 would depend on GDP growth. The new sovereign eurobonds for $11.95 billion under 7.75% interest were issued on November 12. Their maturity period is 2019-2027. The state derivatives have been issued for $2.97 billion.
Ukraine only failed to reach a restructuring agreement on the eurobonds bought by Russia, which it financed from the National Welfare Fund at the end of 2013. Russia refused to discuss restructuring on general terms, insisting that the debt was sovereign rather than commercial.
The Ukrainian government announced the imposition of a moratorium on the payment of a $3.582-billion debt on the so-called Russian eurobonds issued at the end of 2013 for $3 billion. The moratorium is imposed from December 20, 2015.
