The Supreme Court of Great Britain began hearings on a dispute on Ukraine’s non-payment of Eurobonds in the amount of $ 3.075 billion by Ukraine
According to the information on the organization’s website, the process will last from December 9 to 12. The hearing will address technical issues put forward by Moscow and Kiev.
The Russian Ministry of Finance said that taking into account interest, the amount of Moscow’s claims is $ 4.5 billion. The agency’s message, timed to coincide with the start of the London hearings, said that the Russian Federation remains confident that the court will make a decision in favor of Moscow.
Recall that at the end of 2013 Ukraine issued Eurobonds under British law for $ 3 billion, which Russia bought.
The interest rate was preferential and amounted to 5%. For comparison, the government paid 8-9% per annum for other securities. Until the end of 2015, Ukraine serviced debt. As indicated in the Ministry of Finance of Russia, subsequently Kiev stopped sending payments.
The Office notes that after numerous attempts to resolve the dispute out of court, Russia in February 2016 decided to initiate proceedings in a British court. The interests of Moscow are represented by The Law Debenture Trust Corporation, which acts as a trustee (trust) for Eurobonds.
In March 2017, the High Court of London expedited consideration of the lawsuit of Russia against Ukraine over debt. The institution actually obliged Kiev to repay Eurobonds worth $ 3 billion and interest.
The Ministry of Finance of Russia issued an informational message on this occasion, in which it indicated that a British court recognized the absence of arguments in Ukraine against the arguments of Russia.
“In the decision made, the Court indicated that, given that it was a requirement to fulfill obligations on a debt instrument, the defendant did not have any arguments to be considered by the Court in favor of not recognizing the validity of this requirement,” the message on the website of the Ministry of Finance said RF March 29, 2017.
At the same time, the court decision allowed Ukraine to appeal, which Kiev subsequently did. As the head of the Russian Ministry of Finance Anton Siluanov said in September 2018, as a result, the Court of Appeal of England did not support three of the four arguments of the Ukrainian side in the dispute with Russia over the debt.
At the same time, he pointed out that on one of the arguments the court decided to conduct a more detailed study of the issue. The minister clarified that we are talking about providing Kiev with a loan supposedly “under the influence” of Moscow.
Siluanov added that this circumstance postponed for a while the final resolution on the settlement of the dispute between Russia and Ukraine.
In November 2018, Russia filed an appeal in Ukraine’s debt case to appeal the decision to organize a comprehensive process to examine the case of pressure on Ukraine to obtain a Russian loan.
Against the background of the beginning of a new consideration of the dispute, the Ukrainian side announced its readiness to protect its interests.
“The Ministry of Finance’s legal team is fully prepared to represent Ukraine’s interests in London, where the hearings in the Supreme Court will begin very soon today,” Ukrainian Finance Minister Oksana Markarova wrote on Facebook.
In an interview with RT, Vladimir Olenchenko, a senior fellow at the Center for European Studies at IMEMO RAS, pointed out that the previous government in Kiev was trying to give the loan a special meaning.
“The previous political power of Ukraine, which President Poroshenko personified, in every way wanted to avoid paying off debt and servicing it, tried to give it a sense and a certain political character, that it was not economic borrowing, but supposedly some other,” the expert said.
Olenchenko urged to follow the reaction of the current leadership of Ukraine in this situation. According to the expert, the debate on Eurobonds could become an important issue in relations between Moscow and Kiev.
“Let's see what position the political authorities of Ukraine will take, which Zelensky now personifies. Let's see what position they take, how they will formulate their relationship, how they will formulate their approaches to this. This debt is one of the elements of a possible normalization of Russian-Ukrainian relations, ”the expert said.
In turn, the Ukrainian political scientist and economist Alexander Dudchak adheres to the point of view according to which Moscow is more likely to become a winner in the dispute.
“I think, taking into account past trials between Russia and Ukraine, Moscow has a great chance of getting a decision in its favor. $ 3 billion is a kind of sovereign debt, and Ukraine’s attempts to present everything in a different light will no longer pass. The British court has actually recognized this. I think he will simply confirm his decision, ”he said in an interview with RT.
According to Dudchak, it will be difficult to find any reason to change the decision of the Supreme Court of Great Britain.
“In this case, Ukraine has very few chances,” the expert believes.