World Bulletin / News Desk

The Kremlin on Tuesday insisted Russia has made its last offer to Ukraine on restructuring its debt as the clock ticks down on a deadline this month that could see Kyiv pushed into default. 

"Russia put forward an offer for restructuring... unfortunately our interlocutors have not accepted this initiative," Kremlin spokesman Dmitry Peskov said. 

"There will be no other proposals by Russia."

Moscow and Kyiv are locked in a dispute over $3 billion (2.8 billion euros) Russia loaned Kremlin-backed president Viktor Yanukovych in 2013 before pro-European protests that led to his ouster.

Russian President Vladimir Putin last month said that Moscow was ready to spread out the repayment over three years after initially demanding that Kyiv make good on the full amount by late December. 

The dispute has been hampering the IMF's $17.5-billion rescue plan for Ukraine, which restricts Kyiv's ability to restructure billions of dollars in debt, including some held by Moscow.

In mid-October, Ukraine reached a deal with its private creditors to write down $3.6 billion and restructure future debt worth $8.5 billion. 

The crisis-torn nation also offered Moscow the same 20-percent debt cut condition regarding its $3.0 billion loan.

But Russia views the bond as a sovereign loan that is not subject to the commercial terms agreed with Western funds.

The IMF is expected to rule soon on whether Kyiv or Moscow is right about the commercial or sovereign nature of the disputed loan.