UPDATE 2: Ukraine wins $3 bln debt case vs Russia in appeal court

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MOSCOW, Sep 14 (PRIME) -- Ukraine won an appeal against an earlier court decision on U.S. $3 billion Eurobond debt to Russia on Friday, and the London court scheduled another hearing of the case.

The date of the new hearing was not disclosed.

Finance Minister Anton Siluanov said that Russia will contest the decision in the Supreme Court of the U.K. and is sure that it will make an unbiased ruling.

“This decision postpones a final solution of the dispute between the Russian Federation and Ukraine for some time. I hope, that the court of the next instance, a higher one, will make an unbiased final decision,” Siluanov said.

Siluanov also said that the court of appeal turned down three of the four Ukraine’s arguments and ordered a more in-depth investigation into a claim that Russia coerced Ukraine into borrowing the money.

Konstantin Vyshkovsky, director of the state debt and state financial assets department of the Finance Ministry, said that Russia will contest the decision until approximately October 26. If the appeal is turned down by the supreme court, the court of first instance will hold an in-depth investigation of the Ukrainian claim.

Russian authorities are sure about the inconsistency of the argument, he said.

Russia bought Ukraine’s $3 billion 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 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.

In March 2017, the High Court of Justice in London sided with Russia and obliged Kiev to redeem the sum. In June, the court pointed out that each day of non-payment results in the penalty of $673,000 for Ukraine. The court also obliged Ukraine to redeem 2.8 million British pounds of Russia’s legal costs.

Ukraine filed an appeal against the decision in June 2017.

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