Kiev challenged the English court the claim of Russia for $3 billion


Ukraine has sent in the English High court their objections to the Russian claim, and deserves recognition for Kiev defaulting on Eurobonds for $3 billion and payments of the debt with penalty interest. This is stated in the joint statement of the Ministry of Finance and the Ministry of foreign Affairs of Ukraine. The document itself has not yet been published. The Secretariat of the High court did not answer phone calls .

From the message of the Ukrainian authorities that Kiev proves the invalidity of the agreement on financial assistance, signed in December 2013 between Russia and the then President of Ukraine Viktor Yanukovych. In December 2013 President of Russia Vladimir Putin announced that the Russian government agreed to invest $15 billion in Ukraine’s government bonds. Shortly before Yanukovych suspended preparations for signing the agreement on Association with the European Union. Russia managed to purchase with funds from the national welfare Fund (NWF) bonds of Ukraine at $3 billion, after which the power in Kiev changed. The debt was structured in the form of Eurobonds under English law with a listing on the Irish stock exchange.

Ukraine believes that the 2013 agreement was forced by Russia, said the Ukrainian Ministry of Finance and Ministry of foreign Affairs. Previously the foreign Ministry of Ukraine said that a Russian loan of $3 billion “bribe” to Yanukovych from Moscow and will use this argument in the English court.

On the question of further procedural steps Russia’s Deputy Finance Minister Sergei Storchak said : “We don’t owe anyone anything [in terms of answering the objections of Ukraine on the suit]. But we have the right to send their objections and comments.”

In December 2015 Ukraine imposed a moratorium on paying Russia $3 billion on Eurobonds. 20 December 2015, when it was maturity securities, Ukraine failed to pay $3 billion and a final coupon of $75 million In February 2016, Russia filed a claim in the English court with the requirement to accept the default of Ukraine and to oblige Kiev to return $3 billion with penalties, interest. Formally, the suit was filed by the company The Law Debenture Trust Corporation is the Trustee of the Eurobonds. The plaintiff says that the penalty interest should be charged at a rate of 8%, which implies a daily increase in debt by $683 thousand Kiev twice postponed the deadline for objections to the claim, most recently until may 27.