It is very unlikely that Ukraine would strike a Key European infrastructure while asking for debt payment postponement it worked for several months to agree on.
Without debt postponement and new loans Ukraine would go into messy default.
Siemens Energy says sanctions still stand
There were reports from Berlin on Friday that Canada had decided already to accede to Germany's request.
CBC News asked a spokesperson for Siemens Energy Canada about those reports. "That's the first I've heard of it," said Ann Adair.
"No change," she added. "We continue to stick to the sanctions."
Adair also said that merely delivering the turbine to Germany rather than to Gazprom would not be enough to get around the sanctions. She said Siemens would expect to see the matter dealt with through a formal sanctions exemption, justified on humanitarian grounds by Germany's energy needs.
Federal Natural Resources Minister Jonathan Wilkinson said Friday that "it's not simple and we have not made a decision, but we certainly are talking with our friends, Ukraine and Germany."
[MRT: This Canadian statement coincides with Baltops exercise 5-17 June.]
[MRT: This Canadian statement coincides with C.I.A warning.]
Ukraine has asked its international creditors, including Western powers and the world's largest investment firms, to freeze its debt payments for two years so it can focus its dwindling financial resources on repelling Russia.
Facing an estimated 35% to 45% crash in GDP this year following Moscow's invasion in February, Ukraine's finance ministry said on Wednesday it was hoping to finalise the deferral on its roughly $20 billion of debt by Aug. 9.
12 August 2022 - Ukraine's creditors agree 2-year freeze on $20 billion overseas debt
Ukraine's overseas creditors backed its request for a two-year freeze on payments on almost $20 billion in international bonds, a regulatory filing showed on Wednesday, a move that will allow the war-ravaged country to avoid a messy debt default.
14 September 2022 - Ukraine's western government creditors agree debt service freeze
Ukraine's western government creditors concluded on Wednesday a memorandum of understanding on a planned debt service suspension, the group said.
The group, which includes Canada, France, Germany, Japan, United Kingdom and the United States, said in July that they would provide a coordinated suspension of Kyiv's debt servicing to the end of 2023 and potentially for an additional year.
"This MoU eases Ukraine's liquidity pressures and allows its government to increase social, health and economic spending in response to Russia's unjustified, unprovoked and illegal war of aggression," the group said in a statement issued by France's finance ministry.
14 September 2022 - Statement by Group of Creditors of Ukraine (USA)
The representatives of the Group of creditors of Ukraine (“The Group”) and the government of Ukraine met virtually on September 14, 2022 to conclude a Memorandum of Understanding (MoU) in order to implement the debt service suspension announced on July 20, 2022.
This MoU eases Ukraine’s liquidity pressures and allows its government to increase social, health and economic spending in response to Russia’s unjustified, unprovoked and illegal war of aggression.
During the meeting, the Minister of Finance of Ukraine provided a description of the economic and financial situation in his country and presented the measures taken by his government in the past few months to support the Ukrainian economy in the context of the war.
The Group welcomed the reforms implemented by the government of Ukraine to address the economic and financial consequences of the war. In addition, the Group welcomed the conclusion of an agreement with bondholders and warrantholders to defer debt payments for two years, which represents substantive support for the government and people of Ukraine.
Finally, the Group strongly encourages all other official bilateral creditors to swiftly reach agreement with Ukraine on a debt service suspension.
We will continue to closely coordinate and assess the situation with the support of the IMF and the World Bank.
Background note: The Group of Creditors of Ukraine includes Canada, France, Germany, Japan, United Kingdom, and the United States of America.
Observers to the Group include Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, Norway, Spain, Sweden, and Switzerland.
14 September 2022 - Debt Relief for Ukraine - Debt Service Suspension (Japan)
27 September 2022 - US presses EU to speed up financial aid to Ukraine
IMF is separately working on new emergency funds for Kyiv.
28 September 2022 - Biden approves an additional $1.1 billion in security assistance for Ukraine
The Biden administration announced $1.1 billion in additional security assistance for Ukraine on Wednesday, bringing the U.S. commitment to more than $16.2 billion since Russia’s invasion in late February.
The announcement of the upcoming aid package, the 22nd such installment, follows referendums held in four Russian-occupied regions of Ukraine that are backed by Russian President Vladimir Putin.
27 March 2022 - The Government of Ukraine approved a memorandum with the IMF and its G7 creditors – loan guarantees and postponement of debt payments until 2027.
The Cabinet of Ministers of Ukraine approved the government’s and the National Bank’s draft letter of intent to the IMF and the draft Memorandum on Economic and Financial Policy. Minister of Finance Serhii Marchenko must sign the specified letter.
In turn, a group of Ukraine’s creditors from the G7 countries and members of the Paris Club (GCU) have provided financial guarantees for the IMF program to restore the country’s macroeconomic stability.
In addition, the moratorium on the payment of Ukraine’s debts has been extended from August 1, 2022, for the duration of the IMF program (2023-2027). In July 2022, the Group of Creditors announced its intention to suspend principal and interest payments on bilateral debts from August 1, 2022, until the end of 2023, with the possibility of extending the suspension for another year.
The meme "Until the last Ukrainian" = "Save creditors before haircuts"
It is unclear if in a case of messy default Ukrainian debt would be honoured.
It is unclear that the Ukrainian state would have successor
or a one which would be able to pay its debts.
It is unclear what would happen with debts if Ukraine dissolves,
soe regions become part of Russia.
Russia does not recognize the legitimacy of Ukrainian government,
therefore it will not honor its debts.
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