Ukraine’s Prime Minister, Arseniy Yatsenyuk has given Russia two weeks to agree to a Ukrainian debt write down in line with the majority of other creditors to the country. 

He said that they have until 29th October to come on board or face the threat of legal action.

The Russian delegate failed to show up at a debt restructuring meeting in London yesterday and the country has made clear that there is no intention to accept any write down. Kremlin spokesperson, Dmitry Peskov reiterated Russia’s stance today.

Vladimir Putin was quoted as saying that the IMF should loan the country the money to pay a $3 billion bond to Russia issued in 2013. The note is due to be repaid on 20th December and Ukraine are seeking a 20% write down. Ukraine has given Russia the opportunity of a second chance to vote in two weeks. 75% voted in favour yesterday.

At this stage there is no indication Russia’s position will change, leading to an inevitable showdown between the two countries over the issue.

It is not clear what basis Ukraine has in taking the issue to the courts, as Russia has previously threatened court action if the debt was not repaid. Indeed, Russian Finance Minister, Anton Siluanov is said to be preparing for a Ukrainian default and subsequent court action already.