UPDATE3: Russia min says London court orders Kiev to repay $3 bln debt

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LONDON/MOSCOW, Mar 29 (PRIME) -- Russia’s Finance Ministry believes that a decision by London’s High Court of Justice obliges Ukraine to repay a U.S. $3 billion Eurobond debt and relevant interests to Russia, the ministry said in a press release Wednesday.

“The High Court of Justice, following the consideration of the application of the Russian Federation to review the lawsuit against Ukraine urgently, has decided that Ukraine is obliged to pay to Russia the nominal value of Eurobonds in the amount of $3 billion, as well as the corresponding amount of accrued interest,” the ministry said.

"The High Court of Justice has acknowledged that the defendant has no arguments that contradict the plaintiff's arguments about the existence of debt on Eurobonds, and, as a consequence, the absence of the need to consider the defense arguments presented in a full-scale trial involving parties,” the ministry said.

“Considering a demand to fulfill obligations on a debt instrument, the defendant does not have any arguments to be considered in court in favor of non-recognition of justifiability of this requirement,” the ministry said.

“The court thus made a final decision ordering Ukraine by fully repay a debt on Eurobonds to Russia. No additional hearings on this issue are planned at London’s High Court of Justice,” the ministry said.

Judge William Blair said earlier on Wednesday that the High Court of Justice will consider the case urgently.

The court confirmed Russian request to expedite the hearing and will not hear the case fully with analysis of documents and verbal arguments. Russia’s Finance Ministry said before that the request was based on the fact that Ukraine has no real chances to challenge a request to redeem the debt.

A lawyer representing one of the sides in the proceeding told reporters that the expedited hearing may take about six to nine months. Lawyers representing Russia and Ukraine also agreed that Ukraine will submit objections and additional documents on the dispute to the court until April 8. The court will continue the study of the case after it receives objections and documents.

Bloomberg reported citing Ukrainian Finance Minister Alexander Danilyuk that Kiev will continue standing its ground in the case, and the decision to speed up hearing is only the first stage of the trial.

Russia bought Ukraine’s 2-year Eurobonds in December 2013 and later rejected restructuring conditions offered by the country to its commercial creditors. Kiev insisted that the terms of debt repayment to Russia should be the same as for private creditors. The International Monetary Fund (IMF) recognized the debt as sovereign.

In February 2016, Russia filed a lawsuit with the High Court of Justice in London demanding that Ukraine pay the main debt of $3 billion, as well as $75 million of the last coupon income and additional interests accrued since December 20, 2015, the maturity date of the securities.

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