Court of London to Ukraine: Pay! Russia wins summary judgment over 3 billion dollar debt

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March 29, 2017 – Fort Russ News –

–, translated by Tom Winter –


The Finance Ministry has announced the victory of Russia in the dispute over Ukraine’s $ 3 billion debt.

The Finance Ministry reports that the Court of London has ordered Ukraine to return $ 3 billion, plus interest, on bonds bought by Russia. Earlier it was reported that the court would consider the claim in an accelerated manner.

The High Court of London on March 29, 2017, in an accelerated manner (summary judgment), adopted a decision obliging Ukraine to pay $ 3 billion to pay off the Russian Eurobonds purchased in 2013, the Russian Finance Ministry said. In addition, according to the agency, Ukraine is obliged to pay Russia interest on these bonds.

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“In the judgment, the Court pointed out that, given that it is a requirement to fulfill obligations on a debt instrument, the defendant does not have any arguments to be considered in the Court in favor of not recognizing the validity of this claim,” the Finance Ministry said.

The agency stressed that the decision that obliges Ukraine to repay the debt on Eurobonds in full is final and that no additional hearings on this matter in the High Court of London are expected. Yet the Ukrainian side intends to challenge the decision of the High Court of London in the Court of Appeals of London.

Russia acquired Eurobonds of Ukraine at the expense of the National Wealth Fund in December 2013. The debt was due to be repaid in two years, but in December 2015, the new Ukrainian authorities refused to return both the $ 3 billion debt itself and the last tranche of interest amounting to $ 75 million. After numerous attempts to resolve the issue out of court, Russia initiated a trial in London.

Earlier on Wednesday it became known that the High Court of London had denied Ukraine a full-scale consideration of the dispute with Russia about unpaid $ 3 billion, rejecting Kiev’s arguments that the case should be viewed in a broad economic and geopolitical context.

It was then reported that the British judge granted the Russian defense’s petition for an expedited consideration of the claim (summary judgment).

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