Russian President Vladimir Putin told his government to take Ukraine to court if the latter did not repay a $3-billion U.S. eurobond while other Russian politicians blasted the International Monetary Fund for softening its lending rules to help what they call "crooks" in Kiev.
The Kremlin reacted sharply after the Washington-based 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, falling due on Dec. 20.
As Prime Minister Dmitry Medvedev accused the IMF of political meddling, Putin, who last month offered Kiev softer terms for repayment, told his ministers to take Ukraine to the court if Kiev failed to repay.
The IMF's change in rules embroiled Russia deeper in the nearly two-year conflict between the two neighbours, with the eurobond becoming its focal economic point.
The two-year eurobond was taken out by the government of Moscow-backed ex-President Viktor Yanukovich just two months before he fled to Russia in February 2014 in the face of street protests over his policy swerve away from deeper integration into the European mainstream.
Finance Minister Anton Siluanov said Ukraine had 10 days after the Eurobond falls due on Dec. 20 to either repay the $3 billion or accept Putin's restructuring proposal for the debt to be paid back in $1 billion installments, backed by Western guarantees, over three years.
Medvedev said the Fund's decision had no legal basis but had been taken for political reasons. He also expressed doubt that Ukraine would redeem the note.
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