Ukraine looks to restructure 14bn
Ukraines government has approved a list of debt that should be restructured under an IMF programme to save the nation $15.3bn (13.94bn), including $3bn in Eurobonds sold to Russia.
Ukraines sovereign and corporate debt incurred before February 28 is included, the Finance Ministry said on its website. The last category covers state banks, the railways operator and the city of Kiev, according to the statement.
Ukraine is trying to reach an agreement with creditors including Franklin Templeton, which holds about $7bn in the debt, to save $15.3bn through the restructuring. Russia says it bought the Eurobonds in 2013 to support the government of then-Ukrainian president Viktor Yanukovych and is already contributing by not demanding early repayment.
Up to now, weve been repeatedly saying that Russia doesnt plan to restructure the Ukrainian debt and isnt in talks on the issue, said Svetlana Nikitina, an aide to Russian finance minister Anton Siluanov. The ministry hasnt seen the Ukrainian decision yet, she said.
The list of debts included may be published today, the Ukrainian Finance Ministry said. The decision on debt comes amid a relative lull in the one-year military conflict in two eastern Ukrainian regions that led the government in Kiev to seek assistance from the IMF.
While casualties have waned following a ceasefire agreed on February 12, Ukraine still has to complete negotiations on losses for international bondholders by May to keep funds flowing from the IMF.
On Saturday, the situation worsened in the conflict area, Ukrainian military spokesman Andriy Lysenko said. Three Ukrainian soldiers were killed in a mine explosion in the east of the country near Donetsk, while two were wounded.
Pro-Russian militants attacked our positions near Donetsk airport, in the areas of Avdiyivka and Opytne, he told reporters in Kiev on Saturday.
Ukraine said separatists used heavy weapons, which both sides were supposed to pull back under truce accords, to attack government troops at least five times yesterday. Militants in Donetsk also accused government forces of breaches, according to a statement posted by the rebel-controlled Dan news agency.
Russia is taking part in talks on the possibility of the conflicting sides withdrawing some weapons of calibers below 100mm, Foreign Minister Sergei Lavrov said on Saturday in Bratislava. An agreement on that would bolster previous ceasefire agreements and help build trust, he said.
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Ukraine looks to restructure 14bn