Kiev Violates Whole Range of Russian Loan Conditions: Expert

MOSCOW, January 10 (Sputnik) — One of the conditions for granting a loan to Ukraine by Russia was Kiev's compliance to a number of financial and economic parameters, and they are violated, a government expert said Saturday, commenting the latest news that Moscow may be forced to demand early $3 billion debt repayment from Kiev.

"Indeed, one of the conditions of the Russian loan, which is set out on paper, was the observance by Kiev of a number of financial and economic parameters, and they really are violated," a government expert told reporters, commenting on the statement of a source in the Russian government.

"It can serve as a basis for a claim for early repayment," the expert also said, adding that the state of affairs in Ukraine is pre-default.

Earlier the same day, a source in the Russian government said that a whole range of parameters which are the conditions of granting Russian loan to Ukraine are being violated and Russia may be forced to demand early $3 billion debt repayment from Ukraine.

Commenting on the downgrade of the Russian credit rating by Fitch, the government expert called it "politically engaged" and "completely economically unmotivated."

On Friday, Fitch rating agency downgraded Russian credit rating from BBB to BBB- citing the fall in oil prices and depreciating ruble as the country’s economic growth rate is expected to fall to four percent.

In December, credit rating agency Standard & Poor’s (S&P) announced it could downgrade Russia’s sovereign debt status as it gave the country a negative outlook citing monetary weakness and slumping economy.

S&P has a current BBB- credit rating for Russia. A downgrade, which the rating agency said was 50 percent possible, could possibly cause Russia to lose its sovereign debt status.