Photo: Ekaterina Kuzmina / RBC
The Ministry of Finance has announced that a London court ordered Ukraine to repay $3 billion plus interest on purchased Russian bonds. Today it was reported that the court will consider the claim expeditiously
London’s high court on March 29, 2017 summarily made the decision, obliging Ukraine to repay $3 billion to repay the acquired by Russia in 2013 Eurobonds, follows from the message of the Ministry of Finance of Russia. In addition, according to the Ministry, Ukraine is obliged to pay Russia a penalty interest on these bonds.
“In a 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 subject to review in court the arguments in favor of non-recognition of the validity of this requirement”, — stated in the message of the Ministry of Finance.
The Ministry stressed that the decision obliging Ukraine to repay debt on Eurobonds in full, shall be final and no further hearings on this matter in the High court of London is not assumed. At the same time, the Ukrainian side intends to challenge the decision of the High court to the court of Appeal in London. “Today’s decision is the first step. Ukraine received the judge’s permission to appeal,” — said at a briefing, Finance Minister Oleksandr danylyuk.
Russia bought Eurobonds of Ukraine at the expense of the national welfare Fund in December 2013. The debt was to be repaid in two years, but in December 2015, the new Ukrainian authorities refused to return the debt of $3 billion and the interest on the last coupon in the amount of $75 million After numerous attempts to settle the matter extrajudicially Russia initiated legal proceedings in London.
Earlier on Wednesday it became knownthat the High court of London refused to Ukraine in full-scale dispute with Russia on the outstanding $3 billion, rejecting the arguments of Kiev about the fact that it is necessary to consider in broad economic and geopolitical context.
Then it was reported that a British judge granted the request of Russian protection for expedited consideration of the claim (summary judgment), which under British law may, if the Respondent has “no real prospects of successfully defending the claim”.
Ukraine has not paid Russia $3,075 billion (including the last coupon payment on the securities). The plaintiff asked the court to appoint Ukraine penalty interest at the rate of 5% or 8% or any other rate at the discretion of the court, wrote RBC. The lower of the possible rates accrued penalty interest approaching $200 million, the Judge said that now needs to determine the detailed parameters of the solution under an accelerated procedure.