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After an English court ordered Ukraine to repay Russia the $3 billion in debt, the judge will have to determine the exact amount for payment — the debtor may only be given 14 days to pay, said the British company-plaintiff
The next hearing in the High court of London under the claim about collecting from the Ukraine $3 billion debt to Russia will be held in may or June of 2017, it will be resolved several procedural issues on payments from Ukraine. This was told RBC representative of the British company the Law Debenture Trust Corporation (the Trustee regarding the release of Ukrainian bonds), which filed a lawsuit on behalf of Russia.
On March 29, the High court of England rendered a decision under the accelerated procedure (summary judgment) at Law Debenture claim, denying Ukraine’s further consideration of its objections on the merits. Kiev argued that pressure from Russia that led to appeal to her for financial assistance in 2013, and following the change of government in Ukraine Russian “aggression” release the victim of the debtor from the obligation to pay. Although the judge acknowledged the “extraordinary” nature of the case and the “strength” of the Ukrainian arguments, he considered that the English legal doctrine allows us to consider such issues in the English court.
“After a three-day hearing in January 2017 judge concluded in a detailed written decision that Ukraine has no real prospects of successfully defending the claim and there is no convincing reason for a full trial. In short, it confirms that Ukraine is obliged to pay the lender $3 billion plus interest”, — told RBC Director of the Law Debenture Trust Corp. Darren Levin (Darren Levene).
According to him, the judge was left to clarify the following things form of the order fixing the fact that $3 billion is payable, and determining the exact amount of the interest; should Ukraine at this stage is to recover costs incurred by Law Debenture and the Russian government is in the process of protecting their rights; required if Ukraine will pay the debt within 14 days after the order, as provided for in British law. The judge may postpone the execution of the order until such time as it will be known the outcome of the appeal hearings, admitted Levine.
In a lawsuit filed by Law Debenture in February 2016, the plaintiff requested to appoint the Ukraine penalty interest at the rate of 8% (the rate provided by law for debt, recognized in the judgment), or at the rate of 5% (as in the original issue terms) or any other rate at the discretion of the court, wrote RBC. In addition to the $3 billion Ukraine has not paid Russia the last coupon on bonds of $75 million (the previous three were paid).
The Ukrainian side claims that a final decision on the dispute in the English court yet. “Decisions on the merits any more was not” — said the Minister of justice of Ukraine Pavel Petrenko (quoted by “Interfax-Ukraine”). A High court judge has allowed Ukraine to appeal his decision in Appellate court, said in the press release of the Ukrainian Ministry of Finance. The date of the appeal has not yet been determined, says Levin from Law Debenture. Russia’s Finance Minister Anton Siluanov said March 29 in an interview to “Russia 24”, that he believes in “objective” consideration of this appeal, Russia will “take all actions to collect the obligations with interest”.