U.K. court to hear Ukraine appeal on USD 3 bln Russian debt in January

12 December 2017

The hearing on Ukraine’s appeal of the High Court of London's ruling on the USD 3 bln debt to the Russian state fund will convene in London on Jan. 22-26, Russian MinFin official Sergey Storchak told journalists on Dec. 11.


Recall, the High Court of London ruled on March 29 to reject all the defense arguments of Ukraine in a dispute with Russia on this debt. The Russian side demanded in the court immediate repayment of the debt that matured in December 2015. The USD 3 bln debt was taken by Ukraine in late December 2013 in the form of a two-year Eurobond that was fully purchased by a Russian state fund. This Eurobond was the only major debt that the Ukrainian government was not able to restructure in 2015. Ukraine's parliament imposed moratoria on payments on this debt in May 2015 and April 2016.


Alexander Paraschiy: It looks like the U.K. court will reach a final ruling on this case by the spring. Given that the High Court of London rejected all four arguments of the Ukrainian side this year, it is unlikely that Ukraine’s appeal will change much. But we continue to expect that in any outcome, Ukraine will pay nothing to the Russian fund in the nearest years. It will continue to refer to its commitments to the IMF, commitments to other Eurobond holders, as well as the moratorium imposed by Ukraine's parliament.