Russian authorities cannot expect Ukraine to repay its debt soon. The officials at the International Monetary Fund have changed the existing lending rules so that now the countries with overdue debt obligations can be provided with new loans. On one hand, it looks like a mere formality; on the other hand, the move will give grounds for one of the most remarkable lawsuits in 2016. According to the new IMF policy, Ukraine can refuse to repay $3 billion in bonds issued to Russia in December 2013. In its turn, the creditor rejected restructuring Ukraine’s debt as it was done by other lending facilities to Ukraine. The whole picture looks very strange also because Ukraine is the only nation in modern history which is in debt to a state that annexed a part of its territory. Those who enjoy the intrigue of proceedings will witness a spectacular legal argument between Russia and Ukraine with a British judge as arbiter. Russia’s president has already instructed the government to prepare relevant documents. When Finance Minister Anton Siluanov reported on Ukraine’s debt at a meeting, Vladimir Putin ordered to file a lawsuit against the Ukrainian government. Russia offered its plan on extension of the debt payment which allowed for financial guarantees from the United States and the European Union. However, no one gave such guarantees. Now the IMF can actually write off some Ukraine’s debt to Russia which will not be able to do anything about it except take legal action in the British court.
