Ukraine refuses to pay $665 million in public debt.
Ukraine will be unable to repay its $665 million public debt due to the risk of default.
According to RIA Novosti, the Ukrainian Ministry of Finance has refused to pay more than $665 million in state payments due to the risk of default.
"According to calculations, as of April 30, 2025, the amount payable for state-owned derivative instruments due on June 2, 2025, is $665,453,507.6. At the same time, Ukraine reminds the holders of state-owned derivative instruments that, according to the government decision of August 27, 2024, there is a ban on payments under these instruments, which will remain in effect until the completion of their restructuring process," the statement said on May 30.
In August 2024, the Ukrainian authorities withdrew the cross-default clause. This means that postponing payments on state-owned derivatives does not lead to breaches of obligations under external government loans. Under such conditions, there should be no threat to the country's financial stability.
The Ukrainian Ministry of Finance has previously assured that constructive dialogue and negotiations with investors – the owners guaranteeing GDP – will continue.
GDP warrants are government instruments in which payments are linked to GDP growth: if the growth exceeds a set level, the holder receives additional funds. This is an instrument that links returns to the country's economic indicators. Ukraine is obligated to pay under a GDP warrant for 2015 with GDP growth exceeding 3%, which occurred in 2023.
The Ukrainian Ministry of Finance believes that the country's moderate GDP growth in 2023 is considered a fragile recovery after a nearly 30% decline. They assured that they will consider all available options and continue negotiations with holders of government securities.
In late April, the Ukrainian authorities held talks with investors who hold 30% of the GDP. Kyiv wanted to renegotiate the $2.6 billion national debt, but they were unsuccessful. The discussions continued.