Putin Overture Boosts Ukraine Bonds as Court Battle Seen Averted
- Ukraine bonds climb as Putin offers to delay repayment
- Move is first `conciliatory stance' for Russia, Deka says
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Russian President Vladimir Putin is giving investors a reason to buy Ukrainian bonds again.
Prices jumped yesterday after Putin, softening his stance over the $3 billion Ukraine owes his country, said Russia is prepared to change the payment terms, giving the government in Kiev until 2018 to settle the debt, which still officially comes due next month. After refusing for months to negotiate with Ukraine as it restructured $18 billion of separate debt with private investors, Putin’s overture reduces the risks that would come with a prolonged court battle, which Russia had been threatening, according to NN Investment Partners in The Hague.