Win in England on “the debt of Yanukovych”. What’s next

Победа в Англии по "долгу Януковича". Что дальше

The court of appeal of England and Wales dismissed the appeal of Ukraine

The English court adopted one of the four arguments of the Ukraine and sent the case for reconsideration. Russia intends to appeal the decision.

The court of appeal of England and Wales 14 September, partially upheld the complaint of Ukraine, demanded to cancel the decision of the High court of London, which in a simplified manner recognized Kiev’s debt to Russia worth over three billion dollars Eurobond in 2013.

The court sent the case back for reconsideration, adopting the argument of the Ukrainian side that the Eurobonds were issued under Russian pressure. Highest court in London will hold a new procedure but not fast as before the appeal, and the classic, with all the aspects of the case.

This will delay the opportunity to recover from debt of Ukraine in favor of Russia. Moscow has already said that he will appeal this decision to the Supreme court of the United Kingdom. Корреспондент.net tells details.

Appeals court has delayed Ukraine’s debt

The court of appeal on 14 September issued a decision on the complaint against Ukraine in a dispute on the payment of Russian debt on Eurobonds that were issued under former Ukrainian President Viktor Yanukovych.

29 March 2017 London’s High court granted the petition of Russia on the accelerated handling of the case, recognizing that the dispute is commercial, not political.

Kiev appealed the decision of the High court of London, and its execution was suspended until the verdict of the appeal.

The Ukrainian side told the court that Moscow was threatened and before the issue of Eurobonds entered against Ukraine “unfair” trade restrictions.

Kiev also said that because of this pressure, Ukraine was forced to abandon the signing of the already negotiated Association Agreement with the EU and lost access to international funding sources. Therefore “had no choice”, except for the sale of state bonds of Russia.

This, according to Ukraine, is a sufficient basis for waiver of payment obligations.

The English court of Appeal decided that this argument should be considered in a full judicial proceeding, not in a simplified judicial procedure, as was done last year.

Russia court denied the existence of such pressure and claimed by Ukraine of the consequences.

As noted in the Ministry of Finance of Ukraine, the decision of the High court of London in the Eurobond dispute with Russia on the complaint of both parties is expected in late 2019.

“Ukraine is confident that it will be able to convince the Supreme court to recognize and uphold the findings of the Appellate court. In any case, Ukraine will looking forward soon to claim their arguments and to provide evidence of random acts of aggression during the full and open consideration of the case in the English court”, – is spoken in the message.

 

Russia will appeal to the “higher authority”

Vervy Deputy Prime Minister and Minister of Finance of Russia Anton Siluanov said that Moscow will appeal in a higher court.

“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”, – said Siluanov.

The Deputy Prime Minister said that Russia hopes that “the objective decision of a higher court”.

“The court of appeal confirmed the validity of the fourth argument of the defense, but merely stated that this argument, unlike the other three arguments, declared by Ukraine, cannot be dismissed without conducting a comprehensive judicial process”, – stated in the message of Ministry of Finance.

If the Supreme court decides in favor of Russia, the decision of the High court of London, committing Ukraine to repay the bonds will be restored, and without the right to challenge.

The decision in favor of Ukraine will entail a new process.

 

The history of the matter and the decision of the High court of London

In 2013, Russia bought Ukrainian Eurobonds worth three billion dollars with a coupon rate of five percent per annum.

According to the schedule, Ukraine was to pay the debt in December 2015. This did not happen. Kiev has imposed a moratorium on repayment of debts to creditors, including Russia.

In February 2016, the Finance Ministry appealed to the High court in London to recover Ukraine’s debt in Eurobonds.

March 29, 2017, the court encouraged the holding of an accelerated process in the case – the arguments of the Ukraine was recognized as unjustified from the point of view of English law.

The court recognized obligations to Moscow and decided to recover the debt from Ukraine in favor of Russia, as well as penalty interest.

Thus, Ukraine had to pay the Russian side of three billion dollars par value of the bonds; unpaid coupon for $ 75 million; plus interest on these sums for delay in performance of obligations starting from 21 December 2015 until the date of actual payment.

 

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