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Ukraine vows to pay Russia despite default threat

A Russian ruble coin in front of St. Basil cathedral in central MoscowCash-strapped Ukraine promised on Friday to make the next payment on a disputed Russian loan it had threatened to stop servicing due to Moscow’s rejection of more lenient terms. The decision should help ease some of the tensions building between the two neighbours throughout Ukraine’s 14-month separatist revolt that Kiev accuses Moscow of staging — a charge Russia denies. “Two days ago, we paid $39 million (34 million euros) for (US-held) Eurobonds, and we will also pay $75 million to cover the so-called Russian bonds,” Finance Minister Natalie Jaresko told reporters.

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