Ukrainian Prime Minister Arseniy Yatsenyuk says his country won't repay a $3 billion debt owed to Russia by this weekend, citing Russia's refusal to accept repayment terms previously offered to other international creditors.

The "moratorium" on outstanding debt repayments to Russia means that Ukraine is likely to default on the debt due Sunday, which could jeopardize loans that Ukraine has received from a $17.5 billion bailout deal with the International Monetary Fund, reported BBC News. 

"After Russia refused to accept our offer, despite our attempts to reach a restructuring deal, the government is imposing a moratorium on the repayment of the $3 billion debt to Russia," Yatsenyuk said at a televised government session. "We are ready for court proceedings with Russia."

In addition, Ukraine will halt the repayment of a combined $507 million in commercial debt held owed to Russian banks, according to ABC News.

Relations between the two neighboring countries have been tense ever since Russia annexed the Crimean peninsula in March 2014 and Ukraine accused Russia of arming and aiding separatist rebels in eastern Ukraine, a claim that Russia has denied. 

It remains unclear when Ukraine would be ready to repay the debt, reported the Associated Press. Moscow declared that it will take Ukraine to court if it fails to pay on time.

Ukrainian Finance Minister Nataliya Yaresko expressed hope that the dispute could still be resolved without the matter going to court. Kremlin spokesman Dmitry Peskov, however, dashed that hope, saying "there is only the court prospect."