Ukraine to appeal against order to redeem $3 bln Eurobond to Russia

KIEV/MOSCOW, Mar 30 (PRIME) – Ukraine would appeal against the London’s High Court of Justice’s order to redeem a U.S. $3 billion Eurobond to Russia, the Finance Ministry said late on Wednesday.

The court confirmed Russia’s 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.

"The High Court of Justice has not endorsed Ukraine’s position concerning the so-called Russian debt, but allowed an appeal. Ukraine respects the decision made in a difficult and uncertain legal environment,” the ministry said and added that the court met the country’s request to “suspend judgment execution.”

Ukraine intends to analyze the full text of the judgement and its consequences and consult with legal advisers, the ministry said. “Ukraine will continue to stand its ground consistently and protect its state interests using all instruments of the English law at the next stages of the proceeding,” it added.

Russian Finance Minister Anton Siluanov said in an interview with television channel Rossiya 24 that Russia is sure a decision on the Ukrainian appeal will be as non-biased as the decision of the High Court of Justice.

“As far as we know, the Ukrainian party intends to appeal to the London Court of Appeal. It will take some time. We are sure the appeal will be considered as objectively as the High Court of Justice’s decision,” he said, adding that Russia plans to take every necessary step to collect the debt and interest.

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 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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