Ukraine argued nonpayment of $ 3 billion. the loans Yanukovych” military intervention by Russia

Украина аргументировала невыплату 3 млрд долл. по "кредитах Януковича" военным вмешательством со стороны РФ

Ukraine is among the reasons for insolvency in the so-called Russian Eurobonds for $ 3 billion indicates military intervention of the Russian Federation in the Eastern regions of Ukraine and annexation of Crimea, reports “Interfax-Ukraine”, referring to the objection against claims of the company The Law Debenture Trust Corporation Plc relating to these securities, which was sent to the High court of England on may 27.

According to the publication, the document is 46 pages instead of the standard objections in volume 25, which was agreed with by the court at the request of Ukraine.

“The English high court is the commercial court, which adjudicates disputes between commercial entities, not countries. At the same time, the document contains a number of references to Russia and given a lot of connected with this country facts”, – stated in the message.

It is emphasized that the objections against the claim divided into four groups.

In the first group of Ukraine proves that the decision to release in 2013 Eurobonds for $ 3 billion., they were bought by Russia with funds from the national welfare Fund (NWF), was taken in violation of the Ukrainian legislation and the established Ukrainian regulations procedures. In particular, it is noted that at the time of adoption of some decisions was not respected their sequence, including on the debt limit: raised financing received on account of the Treasury before the decision was made to increase the debt limit. In addition, had violated other procedures of passing decisions that Ukraine gives grounds to assert the illegality of the said borrowings.

Within the second group of objections argues that Russia carried out against Ukraine pressure, which resulted in the impossibility of the latter to timely comply with the terms of the loan.

The document provides examples of such pressure of Russia on Ukraine, since the initialling of the Association Agreement with the European Union in March 2013, including the use of trade sanctions in 2014 and 2015, public statements by officials, in particular the Russian President’s adviser Sergei Glazyev at a conference in Yalta in September 2013.

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In addition, given the evidence of Russia’s military incursion into the territory of the Autonomous Republic of Crimea and the further illegal annexation of the Peninsula. Separately lists the actions of the Russian Federation, aimed at destabilizing the situation in the East of Ukraine, the facts support the region’s separatist elements and hostilities.

The third group of objections indicates the existence of implied terms of issue of these Eurobonds. Ukraine claims that the contract Eurobond loan assumed that Russia will not put pressure on her, and since this is an implied condition had been broken, Ukraine could not fulfill the terms of the contract.

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The fourth group of objections also involves the proof of pressure of Russia on Ukraine that led to the failure in fulfilling the conditions of circulation of the mentioned Eurobonds, with the result that Ukraine has the right to defensive countermeasures, in particular the failure of the agreement.

“According to the procedures of the High court of the Russian Federation should respond to these objections within 21 days. At the same time, it can take additional time in providing an answer”, – is summarized in the message.

As reported, in October 2015, after which lasted about six months of negotiations, the holders 13 of the 14 issues of Eurobonds of Ukraine for the total amount of 14.36 billion. and 600 million euros have supported their restructuring. It assumes the exchange of 80% of the amount of new Eurobonds with prolongation of the maturity four years and 20% on state derivative, payments in the years 2021-2040 will depend on GDP growth.

Consent was not obtained only on Eurobonds for $ 3 billion. with maturity 20 December 2015, bought by Russia on NWF at the end of 2013. The Russian Federation refused to discuss the restructuring on the General terms, insisting on the sovereign rather than commercial nature of the debt. Then Ukraine said that in case of Russia’s refusal to accept the terms of the restructuring and debt relief to 3 million UAH Kiev will declare a moratorium on the payment and will sue.

The IMF has recognized the sovereign nature of the debt, but retains the ability to continue financing of Ukraine, despite the default on this debt.

In December 2015, the Ukrainian government imposed a moratorium on debt payments on these Eurobonds. In the end, 17 Feb 2016 the Ministry of Finance of the Russian Federation filed in London’s High court the claim about collecting of debts from Ukraine.

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