OREANDA-NEWS. The Ministry of Finance of Ukraine takes note of the apparent decision by the Russian Federation to initiate legal action against Ukraine over the $3 billion December 2015 Eurobond. On 18 December, the Cabinet of Ministers of Ukraine announced a moratorium on the payment of this bond, also to allow Ukraine to determine any further rights and remedies available to it in connection with the same.

Ukraine is ready to defend itself against any claim that may be brought against it, and is confident in all the circumstances of doing so successfully.

The Ukrainian Government in November 2015 successfully completed a debt operation negotiated in good faith with a representative committee of bondholders. However, Ukraine regrets that the holders of the December 2015 Eurobonds rejected participation in the debt exchange which was accepted by all of Ukraine’s other bondholders.

Despite any legal action, and without prejudice to its position on the underlying debt obligations themselves, Ukraine remains ready to negotiate with Russia in good faith a consensual restructuring of the December 2015 Eurobonds which will allow it to remain in compliance with the financing targets agreed with the IMF under the Extended Fund Facility, while meeting its contractual commitments to other bondholders.