KIEV, June 15 - Ukraine will use the proceeds from a placement of eurobonds to pay sovereign debt, Prime Minister Mykola Azarov said.

"We are borrowing exactly as much money as is needed to repay more expensive debt borrowed in previous years so that we don't burden our people with that today," Azarov said on UT-1 channel on Tuesday evening.

Global markets have more confidence in Ukraine, as witnessed by the fact bids in the latest eurobond placement exceeded offers by a wide margin, he said.