Russia has filed a lawsuit against Ukraine to the court of London for the loan of $3 billion

Russia has filed a lawsuit against Ukraine to the court of London for the loan of $3 billion


MOSCOW, February 17. The Finance Ministry has filed a lawsuit against Ukraine in London’s High court on nonpayment of the loan of $3 billion About it has informed journalists the Minister of Finance of the Russian Federation Anton Siluanov. Kiev needs to repay the debt on 21 December 2015, 31 December has expired the grace period for settlement of the dispute. Direct offers from Kiev Russian Finance Ministry has not received.

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“Today the Finance Ministry of Russia has filed a lawsuit against Ukraine in the High court in London in order to recover the debt under the bonds of Ukraine with a nominal value of 3 billion U.S. dollars and reimbursement of litigation expenses in the Russian Federation”, – he said.

Also, according to the Minister, Ukraine was not ready to negotiate on the settlement of debt in the spirit of “good will”.

“The lawsuit was filed after repeated unsuccessful attempts to call Ukraine for a constructive dialogue on the restructuring of the debt and to acknowledge the fact that belonging to Russia’s Eurobonds are the official credit, and requirements for them should be settled on terms better than what have been proposed by Ukraine with its private creditors,” – said the Minister.

About the chances of Kiev in the court

As previously noted by Deputy Finance Minister Sergei Storchak, Ukraine has no chance to win the lawsuit on the loan.

“When the fact of non-payment will be very easily installed by an English court, this means a very quick and specific procedure for the final decision. In this sense, the colleagues from Ukraine, as a potential trial participants, there is no chance to win,” – said Storchak.

“The court will look, in my opinion, very straightforward,” he added. The Storchak says that after the verdict comes the question of execution of the judgment, but “it’s a different subject.”

The Finance Ministry is preparing for a long process of claiming money on the Ukrainian credit because of financial difficulties faced by Kyiv, reported the Deputy Minister of Finance.

According to him, the claims of the Russian Federation to Ukraine $3 billion for the principal and $75 million in interest payments for the second half.

The Debt Of Ukraine

In December 2013, the presidents of Russia and Ukraine Vladimir Putin and Victor Yanukovych have agreed that Moscow will give Kiev a loan of $15 billion through the placement of Ukrainian securities. Under this program, bonds for $3 billion were placed on the Irish stock exchange on 20 December 2013 and bought by Russia at the expense of the national welfare Fund.

On 17 December, the IMF confirmed that the debt of Ukraine to Russia is official. 20 December, Kiev was supposed to fully repay the loan before Moscow, if he do not, within 10 days after the onset of this period, Russia will go to court.