Ukraine Has Enough Funds to Buy Gas for Winter, Says PM Yatseniuk

Ukrainian Prime Minister Arseny Yatseniuk said Thursday that the country has enough funds to buy gas for the coming winter, adding that Kiev would start legal proceedings if Russia does not accept the cancellation of Ukraine's US$ 3 billion debt. 

"I believe that the financial resource that we have gathered will enable us to purchase the needed gas amounts and to endure the winter” Yatsenyuk said in a note, adding that Kiev should be ready to a harsh winter, with temperatures dropping to 20 degrees below zero Celsius. 

Yatseniuk also spoke of a partial reduction and restructuring of the country’s debts, explaining that the two countries would end up in a “legal war” should Moscow not agree with the terms proposed to its creditors. 

“On October 29 we offer Russia once again to take a decision whether they want to get the terms we proposed to all creditors, or they consider themselves unique. If they believe they are unique - we're ready for legal proceedings with the Russian Federation” Yatsenyuk said in a separate note.  

On Thursday, the majority of Ukraine’s bondholders decided to reduce an overall debt of the country by a total amount worth US$3 billion and to restructure the corresponding debt for a total sum of US$8.5 billion. According to Yatseniuk, the total external debt of Ukraine had amounted US$73.1 billion the beginning of 2014.

‘As of September 1 of the current year, sovereign and sovereign guaranteed debt made up US$70.5 billion’ the Ukrainian government wrote in a third communiqué.

According to Reuters, Yatseniuk also said that Ukrainian energy ministry actions are endangering a $300 million loan from the European Bank for Reconstruction and Development.