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Alexey Ulyukaev: Moscow to sue Kiev in case it fails to repay $3 bln Eurobond on time

09.09.15

On the 7th of September the Minister of Economic Development of the Russian Federation Alexey Ulyukaev took part in a three-party meeting at the ministerial level on issues connected with implementation by Ukraine of the Association Agreement with the European Union.

Russia will turn to a court of law if Ukraine fails to repay its $3 billion Eurobond on time, Alexey Ulyukaev said on Monday.

"We insist on the repayment on schedule," the Minister said. "This is a sovereign obligation," he added.

When asked about whether Russia would apply to a court of law, if Ukraine refused to pay on time, Ulyukaev declared: "Yes, surely. There can be no other scenario."

The Russian Economy Minister said he had not discussed the debt issue at the meeting with his Ukrainian counterpart on Monday.

Russia made a decision in late 2013 to invest up to $15 billion in Ukraine’s sovereign Eurobonds. Soon afterwards, Russia bought Ukraine’s first Eurobond tranche worth $3 billion with a two-year maturity and a coupon rate of 5% per annum and coupon payments every six months.

Russia subsequently decided against investing the other $12 billion in Ukraine’s bonds after a change of power in the ex-Soviet republic.

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