Russia's proposal to Ukraine for settling $3 bln Eurobond in installments does not provide for debt relief, in contrast to the IMF program.
Moscow offers Kyiv to settle the debt in parts over three years, while private creditors agreed to a 20 percent "haircut" and a four-year maturity extension to cut Ukraine's debt burden.
A source familiar with the creditors' thinking said the terms being offered by Russia were very different from those accepted by the swap participants.
"Absent a haircut, this would not appear to be comparable to the terms agreed by private creditors. Moreover, it would compromise the main IMF-dictated parameters of the debt operation in terms of front-loaded financing and liquidity provision," the source stated.
As noted, for as long as the debt remains classified as commercial, the private sector would be unlikely to sign it off. Russia, in turn, argues the 2013 two-year bond should be classified as "Paris Club" official debt while Ukraine says it should be treated as commercial debt.
The source said reclassification as "official" debt would "change things." "Then it's the IMF's issue - it effectively becomes Paris Club debt," the person added.