Ukraine Refuses To Pay China On Yanukovych Debt
- 2.07.2025, 12:55
Kiev wants to restructure.
Ukraine wants to restructure the remaining debt balances on the 2012 Chinese loan for $1.5 billion. The terms will be the same as for other creditors.
This is reported by RBC-Ukraine with reference to the draft amendments to the state budget for 2025 (draft #13439).
Debt restructuring
The document notes that in July 2024 the debt on the loan raised under the state guarantee of the "State Food and Grain Corporation of Ukraine" from the Eximbank of China was classified by the Chinese side as an official bilateral debt.
Accordingly, the Government of Ukraine started negotiations with the creditor on debt restructuring.
In December 2024, the creditor expressed its consent to negotiate the restructuring of payments under the agreement by e-mail and informed that the restructuring process may be lengthy.
Bearing in mind the ongoing negotiations with the Chinese side on debt restructuring on terms of equality with other official creditors of Ukraine the government wants to impose a moratorium on payments until the negotiations are completed.
"Temporary suspension of payments is planned to be introduced on the guarantee obligations of the state on the relevant debt obligations of JSC "GPZKU" for the period until such transaction (transactions) and changes in the terms of the relevant borrowing," the statement said.
The loan to the state of Ukraine is planned to be suspended for a period until the execution of such transaction (transactions) and changes in the terms of the relevant borrowing," the statement said.
The loan to the government of Ukraine is planned to be suspended for a period until the execution of such transaction (transactions) and changes in the terms of the relevant borrowing In 2013, China's Eximbank issued a $1.5 billion loan to the State Food and Grain Corporation of Ukraine (SFGCU) JSC under state guarantees of the Ukrainian government for 15 years.
The 2012 agreement required Ukraine to supply 5 million tons of grain to China annually, but about 6 million tons have been supplied over the years. China has filed a lawsuit in London International Arbitration over the default.
At the beginning of 2022, the balance of the loan was 900 million dollars.