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Russia Will Sue Ukraine If it Fails to Repay Debt

09.10.2015 16:01

Russia may pursue Ukraine through court if Kiev fails to repay its outstanding 3-billion dollars debt obligations on time, a high-ranking Russian government source said Friday.

Last month, Ukraine reached an 18-billion dollar debt restructuring deal, after the United States, a number of European countries and some of Ukraine's private creditors agreed to write down as much as 20 percent of Kiev's debt.

Russia, which purchased 3 billion in Eurobonds from Kiev in December 2013, insists that Ukraine's debt must be paid in full by the end of 2015.

"I think we will be forced to seek the debt repayment judicially," a government source told journalists.

"It is clear that Ukraine will not be able to return its debt immediately, but I do not think we should restructure the debt in the current environment," the Russian government source said.

The official added that the Kremlin had held no internal discussions on restructuring Ukraine's debt.

US Assistant State Secretary for European Affairs Victoria Nuland said on Thursday that Kiev and Moscow would address the debt issue on the sidelines of this week's IMF-World Bank conference in Peru.