Ukraine will get the first $3 billion of proceeds from placing its eurobond
as part of Moscow's bailout package, Russia's finance minister said Monday.
"The deal was closed Friday, and according to our estimates the final
transfer of the proceeds will happen Tuesday," Anton Siluanov told
reporters.
Ukraine President Viktor Yanukovych last month unexpectedly refused to sign a
landmark association agreement with the European Union that would have removed
significant trade barriers. Then earlier last week, he struck a deal with
Russian President Vladimir Putin in Moscow that will temporarily slash the
price Ukraine pays for natural gas by one third and will give Ukraine $15
billion in mid-term financing, with Russia committing to buy Ukrainian bonds.
Mr. Siluanov said that the decision on the next portion of the bonds will be
made early next year. The two-year eurobonds have a 5% coupon, and Russia
committed itself to keep the bonds until maturity.
To buy the eurobonds Russia used its rainy-day National Wellbeing Fund, and Mr.
Siluanov admitted that the Ukrainian papers have a lower rating than that
usually demanded for the financial papers in which the fund's money is
invested.