The GDP-linked warrants originate from a debt restructuring in 2015, and allow for large increases in payments if there is economic growth, but no corresponding fall in payments when growth falls. Having collapsed in 2022 after the Russian invasions, Ukrainian GDP began growing again in 2023 as a result of the international aid and military production for Ukraine’s defence. According to media reports, payments of up to $6.6 billion could be due, 2.5 times the original value of the bonds. Owners of the bonds have refused to accept a fair debt restructuring proposed by the Ukrainian government. The bonds are governed by English law. 
 
Artem Tidva from Ukrainian civil society organisation Sotsialniy Rukh says: 
"These instruments were created for a world that no longer exists. Today, Ukraine is facing an exceptional situation. As long as these bonds are not comprehensively restructured, Ukraine must refuse to make any payments, and it needs the political, legal and financial backing of its international partners to do so." 

Kristina Rehbein from erlassjahr.de warns: “Hedge funds such as Aurelius Capital Management are known for having aggressively sued other debtor countries in the past. Now they are threatening to use these bonds to make billions in profits in Ukraine too - on the backs of the Ukrainian population. These payments would de facto have to be financed from international aid that is actually intended for reconstruction and defense. Germany, as part of the Paris Club and the G7, must support Ukraine in finding a sustainable solution.” 

Tim Jones from Debt Justice UK states: "The G7 and the United Kingdom in particular have a responsibility here - because the bonds are issued under English law. The UK should pass a law to protect Ukraine from being sued while negotiations are ongoing.  sustainable reconstruction of Ukraine must not fail because of the profit interests of a few.“ 

Sébastien Brion, from the French Platform on Debt and Development (PFDD), states : "Private Lenders, like Aurelius Capital Management, are pursuing predatory profit, even when it is on the back of war-torn families. Their refusal to negotiate a restructuring shows once more that in the absence of international regulations, these actors do not cooperate towards common solutions but rather look to benefit from crises to accumulate more profit." 

In a statement launched today, Sotsialniy Rukh and European partner organisations call for: 

• Ukraine to refuse to make any payments until a sustainable restructuring in the interest of a just recovery has taken place.
• The G7 to  protect Ukraine politically and legally - in particular by legally blocking action in European courts, above all in the UK.
• The IMF must continue its support for Ukraine - even if Ukraine defaults on the warrants. 

Read the statement