Fixed Income
Ukrainian sovereign Eurobonds ended last week with only minor changes despite some dramatic political developments that saw the Cabinet headed by Arseniy Yatseniuk survive a tense no-confidence vote in Parliament. Importantly, President Poroshenko finally forced Prosecutor General Victor Shokin to resign in a move that should help to improve the government’s standing with Western creditors as well as to soften the domestic political turmoil. Meanwhile, in London, Russia filed a lawsuit against Ukraine in connection with the latter’s outstanding USD 3bn Eurobond debt, which Moscow claims Kyiv has refused to engage over. The Russian side previously rejected Ukraine’s restructuring proposal to delay redemption until 2019. The Ukrainian position is that the bond was a bribe to the ousted Yanukovich regime.
