KIEV, Ukraine, Dec. 18 (UPI) — Ukraine is about to default on a $3 billion loan and its creditor, Russia, says it is prepared to go to international court.
Ukrainian Prime Minister Arseny Yatseniuk placed a moratorium on the loan payment, due to be paid Sunday. The payment is part of a $15 billion loan arranged in 2013, prior to Russia’s 2014 annexation of Crimea and Ukraine’s interest in joining a European Union free trade zone.
Ukraine is demanding repayment terms similar to those Russia has offered other international creditors. Ukraine is preparing to join the EU free trade zone Jan. 1, the same day it is expelled from a free trade zone of former Soviet countries.
Russian President Vladimir Putin offered to restructure the debt last month if a Western country or non-governmental financial organization backed the debt on Ukraine’s behalf, but none offered.
“We are prepared for court action from the Russian side,” Yatseniuk said.
Russian legislator Anatoly Aksakov, chairman of the State Duma’s economic policy and entrepreneurship committee, told the Rossiya 24 news channel, “Of course, now our government will have to go to court.
“I am sure that we will win the case and we will charge back the money. If we don’t charge it back, Ukraine will have to declare default on its debts. And in this case problems will emerge for many creditors who gave money to Ukraine and continue to do it.”
Russia can sue in international court 10 days after Sunday.
