Putin threatens legal action over $3bn Ukraine debt after IMF softens rules

Putin chairs a meeting of the Security Council in Moscow 4/12/15Ukraine debt: Russian President Vladimir Putin yesterday told his government to take Ukraine to court if it did not repay its $3bn Eurobond while other Prime Minister Dmitry Medvedev criticised the International Monetary Fund for softening its lending rules to help the “crooks” in Kiev.
The Kremlin reacted sharply after the IMF announced it was changing its lending rules to allow it to continue supporting countries if they fail to repay official creditors, a change that would help Ukraine if it misses payment on the Moscow-held Eurobond which falls due on December 20.
Medvedev accused the IMF of meddling and said the Fund’s decision had no legal basis but had been taken for political reasons. He said he doubted Ukraine would redeem the note. “I have the sense that they won’t pay it back because they are crooks,” Medvedev said in an interview on state television. “And our Western partners not only don’t help but also interfere.”
Kremlin spokesman Dmitry Peskov said the IMF had created a dangerous precedent by permitting the non-payment of sovereign debt. “The question is: what happens next?” he told reporters.

Source: reuters