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Germany Asks Ukraine to Boost Debt Terms After Russia Rebuff

  • Russia said to reject revised offer made by Ukraine at Davos
  • Moscow has threatened legal action over $3 billion default
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Germany is asking Ukraine to propose a new offer to resolve a dispute with Russia over a $3 billion bond default after President Vladimir Putin’s government rejected a proposal put forward last month.

The Finance Ministry in Berlin, which is mediating talks between the two former-Soviet neighbors over the debt, is urging Ukraine to compromise, according a person with knowledge of the negotiations, who asked not to be identified because the details are private. The latest offer to resolve the dispute was "unacceptable" because it contained terms that were worse than those given to private creditors in a $15 billion restructuring last year, Russia’s Finance Ministry said in an e-mailed response to questions Tuesday.