Ukraine Reaches Agreement to Restructure Debt

Ukraine reached an agreement with a group of its creditors to restructure its debt and avoid a looming default. The investors will accept a 20% write-off on the estimated $18 billion in debt on the country’s bonds and accept a freeze on repayment for the next four years. The Ukrainian finance ministry has lauded the…

Russia refuses to renew Ukraine gas contract

Russia has announced via Prime Minister Dimitry Medvedev that Kiev will not be allowed to sign any additional natural gas delivery deals from Gazprom, the state gas company, saying that “we won’t extend a transit contract with Ukraine on disadvantageous terms.” The current agreement lasts through 2020, but consistent disagreements and renegotiations on payments have…

Ukraine Looks to Hasten Debt Restructuring

The New York Times writes that Ukraine is moving quickly to avoid a repeat of the ongoing Greece crisis and restructure its debt. The article contends that the Ukrainian government, along with the IMF, is attempting to strong-arm creditors into accepting “big losses” in the process of negotiating a bailout deal.  The government currently stands…

Ukraine: New ceasefire talks in Minsk scheduled for June 23

After the reported death of an additional two servicemen yesterday in Ukraine as reported by Kiev’s military spokesman Andrei Lysenko and increased heavy weaponry presence on both sides in the contested region of Luhansk has prompted calls by both separatists and Kiev to meet again on June 23 in Minsk. The last meeting in the…

Ukraine: Kiev Vies for 40% Bond Write Down

Ukraine has threatened to issue a debt moratorium and cease making payments to creditors if terms favorable to the government are not reached by the end of June. This latest piece of news comes as the Ukrainian government continues debt restructuring negotiations with the International Monetary Fund, although with a deadline fixed at the end…

Russia: G-7 Mulls New Sanctions

The G-7 has again begun to mull tougher sanctions on Russia. The catalyst for the discussions is an alleged outbreak of Russia-fueled violence in eastern Ukraine. There has been increasing amounts of coverage of certain areas of eastern Ukraine in which a perceived buildup of Russian military equipment has been able to reach separatists in the…

Ukraine: Economy to Recess by 9% in Q1 2015, Says IMF

Despite some encouraging signs related to Ukraine’s economy, the International Monetary Fund issued a statement yesterday saying that the Ukrainian economy has declined sharply as a result of the conflict, and that it may continue to do so should sporadic instances of fighting in eastern Ukraine continue. IMF Mission Chief Nikolay Gueorguiev has spoken in…