LONDON - Ukraine was unable to reach an agreement with a group of bondholders over restructuring some $20 billion of international debt during formal talks, it said on Monday, raising the spectre that the war-torn country might slip into default.

An agreement with holders of international bonds that allowed Ukraine to suspend payments after Russia's invasion in 2022 ends in August.

Ukraine had been in formal talks with bondholders for nearly two weeks, seeking to restructure the debt in order to retain access to international markets while meeting International Monetary Fund's (IMF) demands to restructure.

However, the government's proposal and a counter proposal by bondholders showed large disparities between what the parties expected a restructuring to look like.

"Although Ukraine and the Ad Hoc Creditor Committee did not come to an agreement on restructuring terms during the consultation period, Ukraine and the Ad Hoc Creditor Committee will continue engagement and constructive discussions through their respective advisors," the government said in a regulatory news statement.

The government would also continue bilateral discussions with other investors "with a view to making further progress and reaching an agreement in principle at the earliest opportunity," the statement added.

(Reporting by Karin Strohecker and Libby George, editing by Dhara Ranasinghe)