MOSCOW, December 25. Russia will win the case by loan to Ukraine, but Kiev could extend the timeline due to the lack of assets for sale, according to respondents lawyers.
“The chances of winning the Russian side is quite high, since there is gross violation of financial liability, for failure of which there are no defects. In particular, the IMF acknowledged the debt of Ukraine’s sovereign and, therefore, links the government of Ukraine on the possibility of restructuring and delay the payment of four years not applicable”, – said the partner of legal Bureau “Gambit” ajnur Nuriev.
“Russia has high chances to win because in this situation, few disputed issues, Ukraine unreasonably refuses to meet its obligations to the Russian Federation, and the fact of nonpayment is easy to prove. Also increases the chances of the Russian Federation and the fact that the IMF officially recognised the debt of a sovereign” – I agree with my colleague attorney at law, partner of “Business fairway” Roman Terekhin.
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According to lawyers, the process can take about a year. “The process may take about 6-12 months, although in the case of Ukraine insinuations and appeals this period may be longer. A debt collection can take from six months to several years, depending on the situation and further development of Russian-Ukrainian relations,” says Teryokhin. In his opinion, if Ukraine will not be able to repay the debt, for example, due to lack of funds, the payment may take years. Previously, the possibility of this scenario had been confirmed by Deputy Finance Minister Sergei Storchak, who believes that Russia must prepare for a prolonged process. The fact that repayment demands to Kiev to find unprotected assets, which the country in a precarious financial position just yet. Foreign reserves for these purposes cannot be used.
“Ukraine will be just small parts to repay the debt, this will be charged penalties for delay, which will further lengthen the maturity. But if Russia wants to speed up the process, you will be able, in case of delay in execution of a judgment, to seize the property of Ukraine on the territory of the Russian Federation and to impose a penalty. Can also be served the petition and other countries for the seizure of Ukrainian territory” – suggests Terekhin.
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The most likely court to claim the experts referred to London arbitration. “As European bonds worth $3 billion were placed by Ukraine on the Irish stock exchange, all potential disputes arising from this obligation must be considered in one of the courts of the UK. In turn, the Treaty itself about the bond loan, Russia and Ukraine have chosen the London international arbitration court in the competent court,” – says the partner of law Bureau “Gambit” ajnur Nuriev.
Company, where the Finance Ministry was earlier (Cleary Gottlieb Steen & Hamilton on business “Yukos” and the law Bureau “Egorov, Puginsky, Afanasiev and partners” in the case of ExxonMobil), categorically refused to comment, even on the merits. “We do not comment on the work that we do or don’t do for Russian government”, – reported in Cleary Gottlieb.
The Ministry of Finance was unable to provide comment.
As expected, Russia will be converted with the claim against Ukraine on the fact of non-payment of $3 billion of the principal and $75 million in interest payments for the second half of after December 31 .
