Ukraine Defaults On $3.5 Billion Loan To Russia

New York Times: Ukraine Halts Repayments on $3.5 Billion It Owes Russia

MOSCOW — The Ukrainian government declared a moratorium Friday on repaying about $3.5 billion in debt to Russia, introducing new strains to an already poisonous relationship.

Ukraine’s cabinet prohibited further payments to Russia unless Moscow agrees to join a restructuring program that has been accepted by commercial creditors — a step President Vladimir V. Putin of Russia has rejected — or a court orders Ukraine to pay up.

Ukrainian officials said that paying the Russians in full now, after commercial creditors agreed last summer to a 20 percent write-down and long delays in repayments, would be illegal and run counter to Ukraine’s $17.5 billion International Monetary Fund bailout.

WNU Editor: Russian PM Medvedev was/is right .... these guys are crooks .... ‘They won’t pay us back because they are crooks’ - Medvedev on Ukraine debt (RT). Even the IMF is stating bluntly that this is a problem .... IMF says Ukraine must repay Russian loan (DW).

More News On Ukraine Defaulting On Its $3.5 Billion Loan To Russia

Ukraine Defaults on $3 Billion Bond to Russia -- Bloomberg
Ukraine's PM says his country won't repay $3 billion debt owed to Russia this weekend -- AP
Ukraine refuses to repay $3bn loan owed to Russia after bitter row -- The Guardian
Ukraine increases Russia tensions with refusal to pay $3bn bond -- Financial Times
Ukraine Suspends Payment on $3 Billion Loan From Russia -- WSJ
Ukraine defaults on $3bn Eurobond to Russia -- RT
Ukraine finance minister hopes to settle debt dispute with Russia off court -- TASS

Update: It appears that Ukraine is now on the verge of breaking its agreement with the IMF .... IMF says Ukraine loan program under threat (Reuters).

Update #2: Relations with the U.S. are not "hot" either .... Tensions Grow Between Obama Admin, Ukraine (Daily Caller). Hat Tip to James for this link.