The Cabinet of Ministers of Ukraine has announced the imposition of a moratorium on the payment of the debt to Russia worth US$3 billion 75 million, as well as a US$ 507 million debt liability of the Pivdenne DB and the Ukravtodor to Russian banks. This was stated by Prime Minister of Ukraine Arseniy Yatsenyuk at a Government meeting on Friday, December 18.

Arseniy Yatsenyuk reminded that Ukraine had had the debt restructuring "with reasonable bondholders who accepted the terms and proposals of the Ukrainian party": "The Russian Federation, despite our repeated attempts to sign the restructuring agreement with them, refused to accept our proposals. In this regard, the Cabinet of Ministers of Ukraine imposes a moratorium on the repayment of the so-called Russian debt".

"We are introducing a moratorium on the payment of US$ 3 billion 75 million of Russian bonds," stressed the Head of Government.

Arseniy Yatsenyuk informed that the Ukrainian Government was to introduce another moratorium on the payment of debt obligations of the Pivdenne DB and the Ukravtodor to Russian banks, which makes up US$ 507 million.

"As of today, the payments on the mentioned debts totaling US $ 3 billion 582 million to the Russian side are suspended until either our proposals for restructuring are accepted or the relevant court decision is pronounced", he announced.

"We are ready for legal proceedings with the Russian side", said Arseniy Yatsenyuk.