Russia says Ukraine defaulted

MOSCOW: Russia will file a lawsuit against Ukraine after Kiev failed to repay a $3 billion Eurobond and $75 million of interest by Dec. 31, the Russian finance ministry said.

The decision was expected as Russia has repeatedly said it would regard non-payment as a default and file a lawsuit.

The Eurobond was issued by the government of former President Viktor Yanukovich in late 2013 and bought by Russia in its entirety.

"A corresponding lawsuit will be filed in an English court in compliance with the established procedures," the ministry said on its website.

Ukraine´s Prime Minister Arseny Yatseniuk had repeatedly said that Ukraine would not repay the Eurobond at maturity on Dec. 20 and that Kiev was ready to fight the issue in court.

A grace period for repayment expired on Thursday.

The bond was issued just two months before Yanukovich fled in the face of bloody street protests triggered by his seeking to halt Ukraine's swing towards European integration in favour of closer economic ties with Russia.