Russia likely to demand early repayment of Ukraine's $3 billion debt: RIA Novosti

[Hindustani78]

Russia likely to demand early repayment of Ukraine's $3 billion debt: RIA Novosti| Reuters
MOSCOW Sat Jan 10, 2015 4:38am EST

(Reuters) - It is "highly likely" that Russia will demand early repayment of $3 billion in debt owed by Ukraine, Russia's RIA Novosti agency reported on Saturday, citing an anonymous government source.

The source told the agency that Ukraine was in violation of a "whole series" of conditions for Russia's loan.

"In these circumstances it is highly likely that Russia will be forced in the near future to demand from Ukraine the early repayment of the $3 billion debt," the source was quoted as saying.

The comments appear to contradict remarks in November by President Vladimir Putin, who told German media that Russia did not intend to demand early repayment of Ukraine's debt as this would cause a financial collapse.

The finance ministry did not answer calls for comment on Saturday.

Russia lent the money in December 2013 by buying Ukrainian Eurobonds, before the overthrow of Ukraine's pro-Moscow President Viktor Yanukovich in February.

The terms included a condition that Ukraine's total state debt should not exceed 60 percent of its annual gross domestic product, a threshold which appears to have been crossed, Russian Finance Minister Anton Siluanov told Reuters in September.

(Reporting By Jason Bush; Editing by Louise Heavens and Pravin Char)

 

[Superboy]

The only way Ukraine would legally not pay is if Ukraine declares state of war with Russia. But if Ukraine does that then Russia can legally bomb Ukraine with airplanes. So Ukraine is between a rock and a hard place.

 

[Hindustani78]

Russia says Ukraine has violated loan terms: agencies| Reuters
Sat Jan 10, 2015

(Reuters) - Ukraine has violated the terms of a $3 billion Russian loan but Moscow has not yet decided whether to demand early repayment, Russian Finance Minister Anton Siluanov was quoted on Saturday as saying.

Russia lent the money in December 2013 by buying Ukrainian Eurobonds, two months before Ukraine's then-president, the pro-Moscow Viktor Yanukovich, fled the country amid mass protests against his rule.

The terms of the loan deal included a condition that Ukraine's total state debt should not exceed 60 percent of its annual gross domestic product (GDP).

Last month, rating agency Moody's estimated that Ukraine's debt amounted to 72 percent of GDP in 2014 and would rise to 83 percent in 2015. It also said "the risk of default is rising".

"Ukraine has definitely violated the terms of the loan, and in particular (the condition) not to increase its state debt above 60 percent of GDP," Russia's Siluanov said, according to Interfax news agency.

"So Russia definitely has the right to demand early return of this loan. At the same time, at present this decision has not yet been taken."

Siluanov was commenting on earlier remarks by an anonymous government official saying that Russia was likely to demand early repayment as Ukraine had violated many of the loan terms.

The only way Ukraine would legally not pay is if Ukraine declares state of war with Russia. But if Ukraine does that then Russia can legally bomb Ukraine with airplanes. So Ukraine is between a rock and a hard place.

I think this is related to IMF and Ukraine meeting. Russian Federation military is already on alert but i dont think Russian federation will bomb Ukraine for it and start a more bigger conflict.

Ukraine begins consultations with IMF mission| Ukrinform

"The IMF [mission] has arrived in Ukraine. The consultations have begun. All the ministers have to start active cooperation with our partners from the IMF," Yatseniuk said.

"It is not we who borrowed $40 billion over the past few years. This money was borrowed by [former Ukrainian President] Viktor Yanukovych and the former regime. Now we need to repay Ukraine's debt obligations. This will guarantee that Ukraine will fulfill its obligations. Then investors will return to Ukraine, then Ukraine's gold and foreign currency reserves will be accumulated and the exchange rate will get stabilized," he said.

 

[Penguin]

Good luck. As we say in the Netherlands "you can't pluck many feathers from a bald chicken"

 

[Hindustani78]

Good luck. As we say in the Netherlands "you can't pluck many feathers from a bald chicken"

Viktor Yanukovich is not bald chicken.

 

[Penguin]

Viktor Yanukovich is not bald chicken.

Ukraine may be

 

[Hindustani78]

Ukraine may be

Yes, Ukrainian economy is being destroyed but all this seems linked to IMF meeting or even some other thing.

 

[Hindustani78]

http://www.nytimes.com/2015/01/11/w...crimea-from-shipyard-to-film-studio.html?_r=0
Seizing Assets in Crimea, From Shipyard to Film Studio
JAN. 10, 2015

In Kiev, the Ministry of Justice said that nearly 4,000 Ukrainian businesses or organizations had lost property. Mr. Konstantinov refused to discuss the precise number, and the Crimean Ministry of Property and Land declined to comment. But Mr. Konstantinov did say property owners would be reimbursed.

The Crimean government cites the studio as an example of what it calls “criminal” land sales, saying publicly that it will pay only about $100,000 in compensation, reflecting what it says was the sale price under Ukrainian stewardship. Mr. Arshinov said he and his brother originally paid about $3 million for the property and then over $11,000 monthly in property taxes for the main parcel, which was valued at $13 million on the Ukrainian tax rolls. Mr. Arshinov said he and his brother had invested because a friend running Russia’s state movie committee asked them about 15 years ago to rescue the bankrupt studio.

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Seems Russian Federation will seize all the Ukrainian owned companies in Crimea and justify all that because of the loan took during the time of Viktor Yanukovich.