Ukrainian Prime Minister Arseniy Yatsenyuk says his country won't repay a $3 billion debt owed to Russia by this weekend.

Yatsenyuk announced at a televised government session on Friday a "moratorium" on any debt repayments to Russia. That effectively means that Ukraine is defaulting on the debt.

He did not indicate when Ukraine would be ready to repay the debt.

Relations between the two neighbors soured after Russia annexed the Crimean peninsula in March 2014 and threw its backing behind separatist rebels in eastern Ukraine. Ukrainian leaders have accused Moscow of sending troops and weapons to the east, a claim the Kremlin has vehemently denied.

Moscow has said it will take Ukraine to court if it fails to pay on time.