Russia has agreed to restructure a portion of Ukraine’s foreign debt, making them the last of Ukraine’s debtors to agree a restructuring deal. 

The announcement was made during the G20 Summit in Turkey. However, whilst other lenders have agreed a debt write off, Russia have not given any promise of matching it. The Russian Finance Minister, Anton Siluanov, recently said that the offered write off of a portion of Ukraine’s debt as ‘unacceptable’.

What is more likely, is that Russia will extend the repayment period and allow payment in instalments, giving time for the Ukrainian economy to recover.

Russia’s announcement came as a surprise to some. Only hours before, they were insisting that in December, Ukraine would have to pay the $3 billion Eurobond in full.

Some analysts have suggested the reason for Russia’s late compromise is due to a realisation that they will be waiting many years for the issue to go through the international courts.