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Ukraine says prepared to hold 'good faith' talks with Russia on $3 billion debt

Ukrainian Finance Minister Oleksandr Danylyuk speaks during an interview with Reuters in Berlin, Germany, August 30, 2016. REUTERS/Joachim Herrmann

KIEV (Reuters) - Ukraine said on Monday it was ready to hold talks in good faith with Russia regarding a dispute over a $3 billion (2.25 billion pounds) bond that has become yet another sore point between the former allies since Ukraine sought closer ties with the European Union.

Russia, which filed a lawsuit against Ukraine at London’s High Court in February demanding repayment of the Eurobond, said earlier on Monday it was ready for an out of court settlement.

“In accordance with Ukraine’s obligations under the current IMF program - particularly regarding ‘good faith’ talks with the Russian Federation on the claimed debt, Ukraine is prepared to enter into further talks for the possible resolution of the dispute,” Ukrainian Finance Minister Oleksandr Danylyuk was quoted as saying by his press service in emailed comments.

Russian Finance Minister Anton Siluanov earlier said there were preliminary plans to meet with Danylyuk on the sidelines of the meeting of the International Monetary Fund and the World Bank in Washington next month.

Reporting by Natalia Zinets; Writing by Alessandra Prentice; Editing by Alison Williams