Ukraine’s Finance Ministry Ready for Talks with Investors to Avoid Defaulting

The Finance Ministry stated that Ukraine suggested two restructuring options but none of them suited the special committee

MOSCOW, April 24. /TASS/. The Ukrainian Finance Ministry has confirmed that Kiev could not reach an agreement on a restructuring with foreign debt holders of some GDP warrants but insists that Kiev is ready for constructive talks, according to an official statement on the ministry’s website.

Earlier, the Euronext stock exchange released a statement by the Ukrainian government revealing that from April 15-23, Kiev held consultations with members of the special committee, which consists of institutional investors holding approximately 30% of the GDP warrants. During these discussions, Ukraine put forward proposals on restructuring the debt, but the parties were unable to reach an agreement.

RBC-Ukraine explained that this pertains to warrants totaling $2.6 billion, issued in 2015, with full repayment due in 2041. Last year, Ukraine managed to secure a deferment on external debt from private creditors, but the GDP warrants were not included in that arrangement. In turn, the Financial Times reported that by the end of May, Kiev must make a payment of around $600 million on this debt or face the risk of default.

The Finance Ministry stated that Ukraine suggested two restructuring options but none of them suited the special committee. Ukraine’s proposal "has no prospect of approval by a requisite majority of holders of the warrants nor does it form the basis for a viable point of engagement with warrant holders", the committee said on Thursday.

--- "If Ukraine Russia reject any peace and fight on (w/o the USA, hopefully), and Ukraine loses the whole country, do the default or does the victor (Russia) automatically assume the debts of the previous regime for continuity?"

Nope. Debts go "poof." Unless the debt is part of an overall negotiated and approved deal on all sides, which includes recognition of said debt and which party or parties will be responsible for it.

Some related reporting:

"The debt holders said Ukraine's proposal had 'no prospect of approval' and did not 'form the basis for a viable point of engagement'. They also said they were willing to continue dialogue and laid out their rejected proposal for the next payment due on the debt - Ukraine paying $406 million in cash plus $209 million in the form of new bonds."
Ukraine fails to reach restructuring deal with GDP-linked debt holders Reuters, 24 April 2025
"The Ukrainian government said on April 24 that it has failed to reach an agreement with its debtholders to restructure some $2.6 billion of debt. This means Kyiv might have to default on paying some $600 million ahead of the deadline in late May."
Ukraine fails to reach deal on restructuring $2.6 billion debt, faces default Kyiv Independent, 24 April 2025
"Last month the IMF said that, 'if left untreated', the warrants “constitute an important risk” for debt sustainability even after a $15.5bn bailout by the fund and a restructuring of more than $20bn of bonds last year. The warrants were left out of last year's restructuring, given their complexity, but Kyiv needs to strike a deal on them to avoid potentially billions of dollars flowing out of its finances in the years ahead."
Ukraine fails to reach deal with investors to restructure $2.6bn of debt Financial Times, 24 April 2025

Turns out some governments "loaned" -- official creditors Canada, France, Germany, Italy, Japan, Netherlands, Poland, Britain and the United States. And some big private equity funds, and commercial entities like Cargill. And, interestingly, the IMF and both Russia and the Export-Import Bank of China. Lots of complexity in this.

Then there's this little tidbit.

"The Ukraine Development Fund is still in the early stages of setting up the reconstruction bank, but potential investors will get an inside preview of how things will look during a London conference that is set to take place this week."
Blackrock gets half a trillion dollar deal to rebuild Ukraine Times,ky, 24 April 2025

Lots of hands out, stretching to get theirs....

We sold Odessa to the British, but we are willing to also cut a deal with France or the US, but there is non-disclosure agreement you must sign with the Zelinski regime not to disclose what you buying.

This was the Z Victory plan, complete with an offer of rare earth minerals and pipelines to Trump, but Starmer showed up in Ukraine on the 16th of Jan 25 and he signed the contract before Trump came into office.

Trump should call both countries out on ICONIC MINERAL DEAL.

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