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Russia sues Ukraine for non-payment of $3 bln loan

The Russian Finance Ministry filed a lawsuit against Ukraine to the London’s High Court of Justice for non-payment of a $3 bln loan
Russia sues Ukraine for non-payment of $3 bln loan

Russia’s Finance Minister Anton Siluanov said today that Ukraine is not ready to negotiate settling the debt “in good faith”, Joinfo.ua reported with reference to TASS.Ukraine had to pay the debt on December 21, 2015. On December 31, grace period to settle the dispute expired.

“Today the Russian Finance Ministry has filed a lawsuit against Ukraine to the London’s High Court of Justice in order to recover the Ukrainian debt with a nominal value of $3 bln and legal expenses of the Russian Federation,” he said.

According to the minister, Ukraine is not ready to negotiate settling the debt “in good faith”. “The lawsuit was filed after repeated unsuccessful attempts to encourage Ukraine to have a constructive dialogue on debt restructuring and to recognize the loan as official — so that it is regulated on better terms better than those proposed by Ukraine to its private creditors,” the Minister said.

According Siluanov, the Finance Ministry expects transparent judicial proceedings in London. “I believe that the trial at the High Court of Justice will be open and transparent, and the protection of rights of the Russian Federation as a creditor will be carried out by an independent, trustworthy court, which will consider without prejudice the dispute between the two sovereign states, regarding non-fulfilment of the debt obligations on eurobonds,” he said.

Siluanov added that a legal investigation of such dispute in court is a historic precedent on its own account, and “the fact that the debtor actions caused this is only regrettable.”

It should be recalled that Russia considered it unacceptable to agree to Ukraine’s proposal to restructure the debt taken by the government of Yanukovych in 2013 on the conditions similar to the other commercial creditors’, so on December 30, 2015 the Cabinet of Ukraine imposed moratorium on the payment of the debt.