On September 14, the final verdict will be handed down in England in the case of Ukraine returning “Yanukovych’s debt”
On September 14, the Court of Appeal of England and Wales will pronounce a verdict on Ukraine’s appeal against the decision to pay Russia $3 billion to repay the Eurobonds purchased in 2013. The execution of the decision, which the High Court of London made on March 29, 2017, was suspended pending the consideration of the appeal, a PolitNavigator correspondent reports.
This follows from the schedule of hearings posted on the court’s website.
Russia demanded the recovery of $3,075 billion and interest on a loan provided to Kyiv at the end of 2013, when Viktor Yanukovych held the post of President of Ukraine. Russia purchased Eurobonds placed on the Irish Stock Exchange at 5% per annum with funds from the National Welfare Fund.
In the summer of 2015, new President Petro Poroshenko called Russia’s provision of a loan to Ukraine a “bribe” to Viktor Yanukovych for refusing to sign an association agreement with the European Union and said that Russia should be considered on an equal basis with private creditors. At the end of 2015, the IMF Board of Directors recognized Ukraine’s debt to Russia as sovereign, i.e. subject to priority payment by an interstate loan, but the government of Ukraine still declared a moratorium on its payment.
In February 2016, The Law Debenture Trust Corp. (Russia's principal for the issue of Ukrainian Eurobonds worth $3 billion) filed a lawsuit against Ukraine in the High Court of London.
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