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 Germany asks Ukraine for compromise on Russian loan, - Bloomberg

Germany is asking Ukraine to propose a new offer to resolve a dispute with Russia over a $3 billion bond default after President Vladimir Putin’s government rejected a proposal put forward last month.

This is reported by Bloomberg, Censor.NET informs.

The Finance Ministry in Berlin, which is mediating talks between the two former-Soviet neighbors over the debt, is urging Ukraine to compromise, according a person with knowledge of the negotiations, who asked not to be identified because the details are private. The latest offer to resolve the dispute was "unacceptable" because it contained terms that were worse than those given to private creditors in a $15 billion restructuring last year, Russia's Finance Ministry said in an e-mailed response to questions Tuesday.

The mediation effort is a sign that Ukraine is trying to reach an out-of-court compromise to a dispute that's deepened the rift between the neighbors that began in 2014 when Russia annexed Crimea. The government in Moscow refused to take part in Ukraine's debt overhaul last year because it wanted to be treated more favorably than private investors. Bondholders accepted a 20 percent principal writedown as part of that agreement.

Read more: Russia and Ukraine fails to agree upon negotiations on "Yanukovych debt", - Russian Finance Ministry

"An out-of-court settlement would be definitely preferable, as a court ruling and its subsequent implementation would likely be lengthy, complex and could additionally spoil Russian-Ukrainian relations," Gunter Deuber, an analyst at Raiffeisen Bank International AG in Vienna, said in an e-mailed note.

A spokeswoman for Ukraine's Finance Ministry didn't immediately respond to a request for comment on the status of mediation efforts.
 
 
 
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