Ukraine's Ministry of Finance said Monday that the government has asked it to provide an absolute sovereign guarantee to the restructured foreign debt of state-run energy company Naftogaz.
This guarantee covers both the interest and the principal of the debt, the ministry said on its Web site.
The debt includes a $500 million Eurobond, maturing Sept. 30. The ministry said it sees a five-year extension to the maturity of the debt as optimal.
The ministry said Naftogaz should announce its restructuring proposals shortly.
Naftogaz is the key link in shipments of Russian gas to the European Union. Many investors regarded Naftogaz debt as quasi-sovereign and held the paper as a proxy for state debt.