London’s high court ordered Ukraine to pay the debt to Russia

London’s high court ordered Ukraine to pay the debt to Russia

Moscow. March 29. London’s high court by results of consideration of the petition of the Russian Federation on consideration of the claim to the Ukraine summarily decided that Ukraine is obliged to pay Russia the nominal value of Eurobonds in the amount of $3 billion and accrued interest, said in a press release of the Ministry of Finance of the Russian Federation.

“London’s high court acknowledged the absence of the defendant any arguments, refuting the plaintiff’s arguments about the existence of the debt for Eurobonds, and, as a consequence, the lack of consideration of the presented arguments of the defense during the full court proceedings involving the debate of the parties. In particular, in the decision the court pointed out that, given that we are talking about the demand to fulfill the obligations under the debt instrument, the Respondent no

EconomyMarch 29 2017Лондонский the court approved expedited consideration of the claim of Russia to the Ukraine for $3 to minchiate read more

any subject to review in court the arguments in favor of non-recognition of the validity of this claim,” – said in a press release.

Thus, the Ministry of Finance of the Russian Federation, “the court issued a final decision requiring Ukraine to pay Russia the debt for Eurobonds in full”. Any additional hearings on this matter in the High court of London not supposed, said the Ministry.

The progress of the case

The high court in London January 19 concluded the first hearing of the suit to Ukraine, the Law Debenture Trust Corporation, representing as principal the interests of Russia as the sole owner of Ukrainian Eurobonds for $3 billion, for which the Issuer is in default for more than a year. The hearings were devoted to the study of the petition of the Russian side about the matter in an expedited manner. The court heard the parties ‘ positions and withdrew for decision. Wednesday, March 29, the judge announced the verdict.

Ukraine in December 2015, has defaulted on Eurobonds purchased by Russia in December 2013 with funds from the national welfare Fund ($3 billion – the issue itself and $75 million – the last coupon payment). Kiev 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 and until 1 January 2016 to make a payment in a total amount of $3,075 billion.

Then Deputy Finance Minister Sergei Storchak expressed the opinion that to request funds from the Ukraine, if the sovereign does not want to fulfill a court order, it will be difficult. In the end, February 17, 2016, the Finance Ministry filed in High court of London lawsuit to recover the debt from Ukraine. Russia’s interests in court are represented by international law firm Cleary Gottlieb Steen & Hamilton is advising Russian Federation for several years.

Ukraine may 27, filed in the High court of England objections to the claim in which it argued that the contract of borrowing concluded in December 2013 is invalid and not enforceable for a number of reasons, including the violation of domestic legislation and established the Ukrainian regulatory acts procedures for the issue of Eurobonds for $3 billion, as well as “pressure from Russia throughout 2013, with the goal to prevent Ukraine’s signing the Association agreement with the EU.” July 28 Russia filed a petition for adjudication in respect of the notes Ukraine’s belonging to Russia, in an expedited manner.