MOSCOW, May 20 (RAPSI) – Russia will turn to international courts if Ukraine does not respect the terms of its foreign debt repayments, Russian Finance Minister Anton Siluanov told journalists on Wednesday.
When asked if Russia would sue Ukraine if President Poroshenko signs a moratorium on debt repayment into law, Siluanov said: “Without a doubt.”
He said there are no grounds for filing a lawsuit so far. However, Russia will definitely sue if Kiev decides to suspend debt payments and fails to make the third $75 million coupon payment on the bonds that Russia bought by June 20.
“In accordance with the prospectus on the bond issue in which we invested the National Wealth Fund, this will amount to a default. There are no grounds for this yet, but if Kiev misses the June coupon payment, we will sue,” Siluanov said.
On May 19, the Ukrainian parliament adopted a bill to suspend payments under a restructuring of foreign debt. The legislation also stipulates that if the government approves a debt payment moratorium, its creditors will have no right to seek a court injunction on Ukraine’s government assets.
The moratorium, which would last until July 1, 2016, must be signed by the president to become law.