“An obvious focal point for the Ukrainian government now that
Russia has intervened across its border, and actually seized land and assets is
debts owed to Russia,” mentioned Tim Ash, head of emerging markets research
at Standard Bank Group.
Ukraine owes Russia some $2 billion for natural gas delivered in 2013,
and an additional $3 billion once bonds mature in 2015 that Russia purchased
Late last year, then-President Viktor Yanukovych
shunned a political and trade agreement with the European Union, and instead
sealed a $15 billion loan program with Russia in the form of eurobonds. Russia
had imposed economic sanctions on a wide range of Ukrainian goods leading up to
the November 2013 EU summit causing local producers millions of dollars in
losses. Designed to infuse cash into Ukraine’s ailing economy, only $3 billion
came in before Yanukovych abandoned his post and fled to Russia.