Russia boasted strong arguments against Ukraine in debt

Sergei Storchak

Moscow has strong arguments for opposing Kiev in case of appeal against the decision of the High court of London for expedited proceedings on a debt of three billion dollars. About it RIA Novosti said the Deputy Minister of the Finance of Russia Sergey Storchak.

“We have strong arguments, but judges are judges,” the official said, noting that Russia has no experience of participation in similar processes under English law.

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According to Storchak, the appeal process will not be easy. “The losing side if there is a certain amount of claims subject to contestation, in the presence of a court decision in favor of the plaintiff, the defendant will be forced to work on the problem of collateral. It is for the courts to decide, but the problem of bail, bail amounts can be very serious for our party”, — said the Deputy Minister.

On March 29, the Russian Ministry of Finance declared that considers the decision of the London court as final and binding upon Ukraine to pay the debt on Eurobonds for three billion dollars. On the same day the High court announced that the case of Ukraine’s debt to Russia will be reviewed in an expedited manner. Kiev was granted an appeal.

Kiev has outstanding sovereign debt to Russia, which the IMF recognizes the state. Moscow gave Ukraine a loan of three billion dollars in December 2013, when President Viktor Yanukovych. The money was allocated through the purchase of Eurobonds.

Kiev and later Moscow offered to restructure the debt, presenting him as a private. Russia has refused, referring to London’s High court. In early may 2016 the President of Ukraine Petro Poroshenko has signed a law to impose an indefinite moratorium on payment of debt to Russia. Thus, the Ukrainian authorities refused to recognize the default at the end of 2015.