Ukraine refuses to pay $665 million in public debt

According to RIA Novosti, the Ministry of Finance of Ukraine has refused to pay more than $665 million for state services due to the risk of default.

"According to calculations, as of April 30, 2025, the amount of payments for state derivatives due on June 2, 2025 is $ 665,453,507.6. At the same time, Ukraine reminds the owners of state derivatives that, according to the government decision of August 27, 2024, there is a moratorium on payments under these instruments, which will remain in effect until the completion of their restructuring," the statement said on May 30.

In August 2024, the Ukrainian authorities withdrew the cross-default provision. This means that the postponement of payments on sovereign derivatives does not lead to a default on obligations under external government loans. Under such conditions, there should be no threat to the country's financial stability.

The Ministry of Finance of Ukraine has previously assured that constructive dialogue and negotiations with investors - owners of GDP security resources continue.

A GDP warrant is a government document whose payments are linked to GDP growth: if it exceeds a set level, the holder receives an additional amount. It is an instrument that links profits to the country's economic indicators. Ukraine is obliged to pay under the 2015 GDP warrant if GDP growth exceeds 3%, which will occur in 2023.

Ukraine's Finance Ministry believes that the country's moderate GDP growth in 2023 is a fragile recovery after a decline of nearly 30%. They assured that they will consider all available options and continue negotiations with government securities holders.

In late April, the Ukrainian government held talks with investors who own 30% of the GDP guarantee. Kiev wanted to renegotiate the $2.6 billion national debt, but they failed to do so. Talks continue.