KIEV, May 23 - Ukraine is partially refinancing a $2 billion loan from Russia's VTB Bank, the payback deadline for which is June of this year, by issuing $1 billion worth of government domestic loan bonds, Economic Development and Trade Minister Petro Poroshenko told journalists in Kiev on Wednesday.

"The decision has been made that $1 billion of government bonds will be issued for a period of two years at an interest rate considerably lower than current market quotes," he said.