Ukraine will not be able to redeem the $3 billion in "Russian" Eurobonds, which mature on Dec. 20, 2015, on initial terms, the Ukrainian Finance Ministry said.
“Regardless of their characterization, and reserving Ukraine’s position as to the obligations themselves, the December 2015 Eurobonds constitute debt obligations which Ukraine cannot pay in accordance with their initial terms without (i) violating the financing targets established under the Extended Fund Facility and (ii) breaching its contractual obligations under the ‘most favored creditor clause’ included in the new sovereign debt securities issued in November 2015 as part of the recently completed debt operation,” the ministry said in a statement, posted on its website.
