Ukraine has received a chance to repay Russia the $3 billion
Countries have a new trial.
The court of appeal of England ruled in the case of the debt of Ukraine at $3 billion to Russia. In March 2017, London’s High court ordered the Ukrainian authorities to pay off the debt on the bonds, to pay $75 million of coupon interest and penalty interest. Ukraine has demanded to cancel the decision of the court.
The appeal was dismissed by three of the four arguments of the Ukraine, but decided that the fourth argument is worthy of consideration in the framework of a full trial. About this “Vedomosti” reported law firm Cleary Gottlieb Steen & Hamilton.
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It is the fourth argument of Ukraine, declaring that the Eurobond was issued under improper pressure, it seemed to the court of appeal deserve more serious attention. He disagreed with a previous decision of the High court that the trial in this argument is not required. The court of appeal held that this issue can be resolved only in a judicial process in which Ukraine will have to present evidence in favor of his statements.
“In its ruling, the court of Appeal confirmed the validity of the fourth argument of protection, but stated that he, unlike the rest of Ukraine cannot be dismissed without trial” — said “Vedomosti” representative of Cleary Gottlieb Steen & Hamilton. According to him, Russia considers this decision is wrong and that “this argument, like the other three stated Ukraine should also be dismissed without trial”. Therefore, the Ministry of Finance is instructed to appeal to the UK Supreme court on the decision on the fourth defence.Deputy Prime Minister and Finance Minister Anton Siluanov confirmed that the appeal instance has decided to conduct a full trial in one of the claims of Ukraine. Russian officials have promised that the decision will be challenged:
We will appeal to the Supreme court of England and we are sure that British justice will be able to objectively investigate and take the appropriate decision. The current decision delay final decision on the settlement of the dispute between Russia and Ukraine. I hope that the next authority, a higher authority, finally to take an objective decision.
Bonds for $3 billion Russia bought from Ukraine in December 2013 when former President Viktor Yanukovych. They had semi-annual coupon period with interest rate of 5% and were due for repayment on 20 December 2015, Ukraine has paid coupon income for the first three semesters, but then stopped payment and has not repaid the face value.
In February 2016 The Law Debenture Corporation PLC, representing the interests of Russia, filed in London’s High court the claim about collecting of all sums of debt of Ukraine for Eurobonds. Ukraine in support of its position cited four arguments:
Ukraine did not have the authority to issue bonds; Ukraine issued bonds under duress; there were implied terms of the issue that Russia violated; Ukraine had the right to redeem the bonds in response to Russia’s actions.
In March 2017, London’s High court supported the position of Russia and ordered Ukraine to pay Russia the nominal value of bonds in the amount of $3 billion and $75 million of coupon interest and penalty interest. In the court’s view, Ukraine has no legal grounds for non-performance of payment obligations on Eurobonds, even if the actual circumstances to which Ukraine is referred to actually took place. Ukraine insisted on a full trial with all the political aspects of the case.