View of the High court building, London
Independent company The Law Debenture Corporation Plc, representing Russian interests, filed in London’s High court a motion for an expedited ruling on the suit on debt of Ukraine at $3 billion this is stated in a press release published on the website of the Russian Ministry of Finance.
The Ministry reported that the Russian side demanded to leave without satisfaction the opinion of Ukraine on the claim and render a decision that would oblige Kiev to pay the face value of the bonds, the amount of unrealized coupon payment of $75 million and interest for late payment of the debt.
As recalled by the Finance Ministry, Ukraine admitted that it was not made payments on the bonds within the prescribed period. “The Ukrainian side claims that the issue of these sovereign bonds was never properly authorized by the Executive and legislative authorities of Ukraine”, — explained in Department. While in Moscow believe that such statements “do not correspond to how the public statements of Kiev, taken during the placement of bonds, and its action.”
The Russian side also felt that the Ukrainian response to the claim there is a “number of political arguments that do not relate to the requirements to pay the debt. “Moreover, the Ukrainian side insists that the political circumstances providing grounds for the liberation of Ukraine from the obligation to repay the debt”, — concluded the Ministry of Finance.
In Moscow believe that London’s High court will decide an expedited review of the claim until the end of 2016. If the petition is granted, the final decision on the merits of the claims may be made in early 2017.
In December 2013, Ukraine issued two-year Eurobonds for $3 billion at 5% per annum. The national welfare Fund (NWF) by order of the President of Russia Vladimir Putin.
Ukraine was demanding debt restructuring and then in December last year imposed an indefinite moratorium on payment of debt. In Kiev said that the 2013 agreement was under duress from the Russian side. The authorities explained that Moscow provided to Kiev pressure in order to prevent the conclusion of an Association agreement with the EU. The foreign Ministry called the bonds “bribe” to the former President Viktor Yanukovych.