Putin Makes Offer to Restructure Ukraine’s $3 Billion Debt

Russian President Vladimir Putin said on Monday that Moscow is open to restructuring Ukraine’s $3-billion debt, adding that it is waiting for guarantees from the U.S., the EU or international financial organisations to proceed. 

According to Interfax and Bloomberg, Russia is prepared to defer payment this year, asking for $1 billion in 2016, 2017, and 2018. Ukraine’s debt will become due in December.  

In 2013, Russia bought Eurobonds in the amount of $3 billion as part of an envisaged $15-billion aid package for Ukraine, after then-president Viktor Yanukovych rejected the association agreement with the European Union. 

Putin told journalists at a news conference at the G-20 summit in Antalya that the Kremlin’s proposal offers “better” terms than the ones sought by the International Monetary Fund. 

Also on Monday, Russian Finance Minister Anton Siluanov met with the head of the International Monetary Fund (IMF), Christine Lagarde. 

Ukraine reached a deal with commercial bondholders in August, comprising a debt swap, a 20% write-down on the principal, and coupon cuts.

Russian officials said that the IMF should take a decision on Russia's proposal by December 8.

Meanwhile, TASS wrote that Moscow will reconsider the possibility of granting gas discounts to Ukraine “closer to the end of Q4.” 

“Closer to the end of the year the price will be clearer, which on average will develop in the Q4, and the price that will develop according to the formula in accordance with the contract,” Russia’s Energy Minister Alexander Novak said on Monday, as reported by TASS.