Kiev says Russia agrees on delay of Eurobond debt case hearings

KIEV, Apr 22 (PRIME) -- Moscow decided to give Kiev more time to prepare its objection to Russia’s suit on Ukraine’s U.S. $3 billion Eurobond debt non-payment, the Ukrainian Finance Ministry said in a statement Friday.

On April 18, Russian Deputy Finance Minister Sergei Storchak said Ukraine had requested the High Court of London to delay hearings of the Eurobond debt case for a second time, but Moscow did not agree to postpone the hearings.

“Despite recent firm statements by Russia that it disagrees to give Ukraine an additional time to prepare objection to the suit…Russia fully dropped this position on the eve of the hearing, and…agreed to grant an additional time that was requested by Ukraine,” the ministry said.

Kiev’s 2-year Eurobonds were bought by Russia in 2013. The securities matured in December 2015. Ukraine believes the debt is commercial and is subject to a restructuring deal, reached in August 2015 with commercial creditors, which includes a 20% write-off and a delay of redemption till 2019–2027. Moscow rejected the conditions as it believes the debt is sovereign, and should be restructured on different conditions.

The International Monetary Fund (IMF) acknowledged the debt as sovereign. In February 2016, Russia filed a lawsuit over non-repayment of the Eurobond by Ukraine to the High Court of London.

End