Russia announces lawsuit against Ukraine over default on $3bn debt

Russia's finance ministry said Friday it was suing Ukraine for defaulting on a $3-billion debt to Moscow, following an order by President Vladimir Putin, according to the Economic Times.

Kiev is "in a state of default" regarding its obligations toward Moscow and legal proceedings would ensue, the ministry said.

Ukraine announced last month it would not make the payment on its debt to Moscow after Putin vowed to sue Kiev if it failed to pay by the end of 2015.

The debt stems back to 2013 when Russia loaned $3 billion to the Kremlin-backed president Viktor Yanukovych, before pro-European protests that led to his downfall.

Source: MENA