Ukrainian President officially allows 'default' on debt to Russia

Ukrainian President Petro Poroshenko has signed a law allowing to indefinitely extend the moratorium on debt payments to the Russian state. This was reported on the website of the parliament.

Illustration: Sputnik.

We are talking about the amendment of the law "On the specifics of transactions with state debt, state-guaranteed debt and local debt". Previously, the ban was effective until July 1, 2016.

However, the amendment says the ban can be lifted upon agreement between the disputing parties.

In December 2013, Moscow lent Kiev $3 billion. In December 2015, when the payment came due, the Ukrainian government imposed a moratorium on debt repayment.

In February 2016, Russia filed a lawsuit in a British court forcing Kiev to pay a $3 billion loan.

According to Sputnik