KIEV, Feb 4 (PRIME) -- Ukraine’s Finance Ministry does not expect litigations over a U.S. $3 billion Eurobond held by Russia to end this year, Deputy Finance Minister Vasily Shkurakov said in an interview to UNIAN news agency published on Monday.
“The litigation is going on, and we don’t expect it to be finished this year,” 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 (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.
In March 2017, the High Court of Justice in London sided with Russia and obliged Kiev to redeem the sum. In June, the court said that each day of non-payment results in a $673,000 penalty for Ukraine. The court also obliged Ukraine to redeem 2.8 million British pounds of Russia’s legal costs.
In September 2018, the Court of Appeal of England ruled that Ukraine had to repay the debt and interest. But the court also said that one of Ukraine’s arguments – that Moscow pressured Kiev into selling the Eurobonds – cannot be dismissed without a full-scale judicial process.
The Russian Finance Ministry ordered the Law Debenture Trust Corporation plc to file an appeal against the Court of Appeal’s decision to the U.K. Supreme Court in October 2018. The ministry said in November 2019 that it does not expect the court to consider the appeal before June 2019.
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