The English appeal court has completed hearings on the debt of Ukraine to Russia

© RIA Novosti / Alexander Demyanchuka in photobacteria banknotes and coins of Russia and Ukraine. Archive photoThe English appeal court has completed hearings on the debt of Ukraine to Russia© RIA Novosti / Alexander Demyanchuka the image Bank

The court of appeal of England has completed public hearings on the case of Ukraine’s debt to Russia three billion dollars, the correspondent of RIA Novosti news from the courtroom.

Kiev is trying to challenge the decision of the High court of London, which ruled that the Ministry of Finance of Ukraine executed its obligations on Eurobonds to Russia.

Five days of open meetings, the appeals court reviewed the arguments of the participants in the process.

Until 5 February the court will hear the case in absentia, the parties will provide the data that do not have time to Express before. The adoption of the final decision may take up to three months.

The arguments of the parties

The attorney representing the Kyiv legal company Quinn Emanuel Urquhart & Sullivan Bankim of Tanki argued at the hearing that the High court judge William Blair «does not fully take into account the peculiarities of Ukrainian legislation». In particular, the volume of Eurobonds placed beyond the limits defined in the prevailing budget act.

Queen’s counsel, the company Law Debenture Trust Corporation mark Howard, who represented the interests of Russia, noted that the deal on the placement of Eurobonds held in international and English law and fully complies with them. However, he pointed out that the geopolitical conflict between the two countries referenced in the defense of the opponent, is not a basis for cancellation of the decision of the previous instance.

Case history

Sovereign Eurobonds of Ukraine for three billion dollars was placed in favor of Russia on market terms (with the coupon rate of 5% per annum) at the end of 2013. Until the end of 2015 Kiev regularly serviced the debt, but then defaulted on these bonds.

The Russian Ministry of Finance filed a lawsuit in London’s High court in March 2017 won: the court obliged Ukraine to pay Russia the nominal value of bonds — three billion dollars, the amount of unrealized coupon payment is $ 75 million, as well as penalty interest.

Each day of delay costs Kiev in 673 thousand dollars.