As Ukraine's debt tangle unwinds, Russia holds key thread.
A selloff on Ukraine's dollar debt is focussing attention on a controversial $3 billion (£1.8 billion) bond held by Russia, raising investor concerns that President Vladimir Putin could use the issue to trigger a cascade of defaults across Kiev's sovereign Eurobonds.
The so-called bail-bond, taken out late last year by former Ukrainian President Viktor Yanukovich, carries a clause which - given Kiev's steadily worsening finances - may enable the Kremlin to demand immediate repayment.
At best, that could force Western lenders to stump up more cash for Kiev. In the worst - albeit less likely - scenario, so-called cross-default provisions carried by most Eurobonds would force payment on all Ukraine's remaining dollar bonds at once if Moscow is not paid on time.
Putin, who has annexed Crimea and is widely accused of stoking a separatist revolt in eastern Ukraine, is seeking to maximise economic leverage to prevent pro-Western President Petro Poroshenko fulfilling a far reaching free trade agreement with the European Union.
http://uk.reuters.com/article/2014/09/24/uk-ukraine-crisis-eurobonds-analysis-idUKKCN0HJ1DL20140924
Bullet proof term and condition related to Debt/GDP ratio written under English law. Later Greek loans were written in a similar fashion - not joke local laws.
Overnight bank transfer of repayment of the bond applies as far I'm aware. Singular way out would be to not cross the 60% level unless Goldman Sachs can sort them something off balance sheet. 
