By Jonathan Davies
The Ukrainian government has reached a deal to have 20% of its debt written off.
Finance Minister Natalia Yaresko said Ukraine's $19 billion debt would be reduced $3.8bn and the repayment period would be extended.
Ukraine's economy tumbled when the conflict with Russian separatists started in April 2014, sending debt shooting up with it.
The US and International Monetary Fund (IMF) put pressure on Ukraine's foreign and private creditors to accept short-term losses in order to prevent the country having to return to its reliance on Russia.
Ms Yaresko said it was a "win-win" situation. And Prime Minister Arseniy Yatseniuk described the deal as a blow to Ukraine's "enemy", Russia.
Russian Finance Minister Anton Siluanov said that Russia would not take part in the restructure. Ukraine is due to make a $3bn payment to Russia in December.