Ukraine has paid part of the cost of the process about the debt to the Russian Federation


Moscow. September 21. INTERFAX.RU – Ukraine has paid part of the costs in the proceedings on the debt bought by Russia the Eurobonds, thereby fulfilling the decision of the London court, the Finance Ministry said Russia.

“The company The Law Debenture Corporation, representing, as Trustee (the Trustee) to the interests of the Russian Federation as the only owner of bonds of Ukraine with a nominal value of $3 billion, confirmed receipt from Ukraine payment in the amount of 1.16 million pounds (a little more than $1.5 million – if). Thus, Ukraine has fulfilled the judgement of the High court of London, on payment by Ukraine of the legal costs incurred by the Russian side,” – said the Ministry of Finance.

Ukraine in December 2015, has defaulted on Eurobonds bought by Russia shortly before the change of power in Kiev on the NWF ($3 billion – the issue itself and $75 million – the last coupon payment). Ukraine has offered Moscow a debt restructuring with commercial creditors terms, Russia this option to discuss refused, insisting on the sovereign nature of the debt. The debt had to be repaid until 1 January 2016, However, in December 2015 Ukraine imposed a moratorium on the servicing of this debt until January 1, 2016 not to make a payment in a total amount of $3,075 billion on account of repayment and service belonging to the Russian Eurobonds.

Then, on February 17, 2016 the Ministry of Finance of the Russian Federation filed in London’s High court the claim about collecting of debts for Eurobonds. London’s high court on 29 March 2017 approved expedited review of the claim on Eurobonds for $3 billion, agreeing with the presence of Ukraine’s Eurobond obligations. The court found that the transaction is a standard debt operation, although carried out with unusual circumstances. But Russia will not be able to recover the debt on Eurobonds for $3 billion until the decision of the appeal authority hearing on the appeal of Ukraine is scheduled for January 2018.

In addition, the High court of London has obliged Ukraine to compensate for Russian part of the costs of judicial proceedings, in the amount of 2.8 million pounds. Half of this amount, the debtor had to pay not later than 20 September 2017, the Court held that the requirement of Russia in regard to the compensation of the rest of the costs, incurred due to nonfulfillment of obligations on the bonds, will be considered after the decision was filed by the Ukraine in June of appeal from the verdict of the High court of London.

Shortly before the deadline the Russian Finance Ministry said Ukrainian about the deadline. “We are counting on the fulfillment by Ukraine of court decisions on compensation of the legal costs incurred by the Russian Federation until tomorrow” – said the head of the Department of state debt and state financial assets of the Ministry of Finance of the Russian Federation Konstantin vyshkovsky, the TV channel “Russia 1” Tuesday, September 19.

Litigation with Russia did not prevent the Ukraine this week to return to the international debt market, posting a 15-year Eurobonds for $3 billion under 7,375%, while demand for debt securities of the country exceeded the offer several times. The vyshkovsky believes that Eurobonds countries could be of interest only to investors with a speculative strategy – formally the country is in default.

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