Kyiv to forward legal offer on debt restructuring to holders of Russian bonds simultaneously with other creditors

After the final approval and formalization of an offer on the restructuring of Ukraine's sovereign and sovereign-guaranteed eurobonds, the Ukrainian government will forward it simultaneously to all of their holders, including the holders of the so-called Russian two-year eurobonds worth $3 billion issued in December 2013, Ukrainian Finance Minister Natalie Jaresko said.

"We have just signed the indicative terms. The Cabinet of Ministers has approved all this, and now we are submitting the legislation to the Verkhovna Rada next week so as to legalize all this. As soon as we pass this legislation and the president signs it, then we will make a so-called legal offer through the custodian system," Jaresko said on Hromadske TV on Friday evening.

Jaresko said she could not make an official offer on debt restructuring to Russia before this procedure is completed.

"I need to have these legal instruments. Then the same terms are to be legally offered simultaneously to all. They all are [equal] creditors and can either agree or not," she said.

Jaresko stressed at the same time that, back in spring, Ukraine had invited the holders of the so-called Russian bonds to join negotiations on debt restructuring on an equal footing with the other creditors, which they ignored. Hence, the ad hoc committee of creditors was made up of only four creditors, which, however, hold $9 billion of the $22 billion debt included in the restructuring perimeter, she said.

Talking about the 'Russian' bonds, Jaresko noted once again that, in line with international restructuring rules, all instruments must be treated the same way, i.e. in line with the pari passu principle.

"All these eurobonds are sovereign, all are quoted on the Irish Stock Exchange, everything in line with UK law. This is not a government's loan, and I cannot interpret them differently. As they may be sold at any moment, I must offer equal terms to all," Jaresko said.

It was reported earlier that the Ukrainian government led by Mykola Azarov had issued $3 billion worth of eurobonds maturing in two years in December 2013, which were purchased by the Russian National Welfare Fund.

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