This should come as no surprise at least $3b in bonds that are due very soon…
Ukraine owes $3 billion to Russia in bonds that have been issued under UK law. One of the stipulations of the bonds is that if the Ukraine’s debt-to-GDP ratio should exceed 60%, the bonds will become immediately callable.
Once the Ukraine gets funding from the IMF, this is of course going to happen right away – its debt-to-GDP ratio will then most definitely exceed 60%, so the first $3 billion of any aid the Ukraine receives in the form of loans will right away flow into Russia’s coffers.
Of course there may be litigation first, but as Greek bondholders have found out, all those who held bonds issued under UK law were actually paid in full, while everybody else had to accept the ‘PSI’ and could basically go pound sand.
