KIEV, Aug. 27 - Ukraine, partially refinancing its debt to VTB will provide the bank with $1 billion in eurobonds with maturity on June 4, 2014 at a rate of 7.95%.

According to terms published by the Cabinet of Ministers on the government’s website, interest income on the bonds will be paid out semiannually - on December 4 and June 4.

In June 2010, VTB provided Ukraine with a $2 billion, six-month bridge loan at 6.7% per annum. Later, VTB ceded the rights on its loan to Ukraine to VTB Capital. Payment fell in June 2012, but the half-year loan was extended three-fold by an additional 1.5 years.