Where debts lead

In the evening, on Wednesday, the Russian Ministry of Finance announced that the high court decided: Ukraine should still pay with Russia for bonds issued a couple of months before Viktor Yanukovych’s flight from the country. In Kyiv, they say that everything is not so unambiguous.

“The high court of London, based on the results of consideration of the petition of the Russian Federation to consider the claim for Ukraine in an accelerated manner, decided that Ukraine is obliged to pay Russia the nominal value of Eurobonds in the amount of 3 billion US dollars, as well as the corresponding amount of accrued interest,” the press release of the Ministry of Finance says in the press release

“The high court of London recognized the absence of any arguments that refute the plaintiff’s arguments about the presence of a debt on Eurobligations, and, as a result, the absence of the need to consider the submitted defense arguments during a full-scale trial, which involves the debate of the parties,” the court said: the court indicated that, taking into account that, given that it is about the request to fulfill the execution of execution The obligations on a debt instrument, the defendant does not have any arguments to be considered in court in favor of non-recognition of the validity of this requirement.

Judge William Blair www.qatarisbooming.com

Judge William Blair (brother of the former Prime Minister of Great Britain Tony Blair) in his decision, according to RBC, admitted: Ukraine brought “good arguments” in favor of the fact that the pressure from Russia served as one of the reasons why Ukraine released bonds of $ 3 billion, the only buyer of which Russia became (through the FNB). But not one of the four basic arguments, why Kyiv should pay Moscow “Yanukovych’s duty” (including the argument on “the application of force against Ukraine and interference in its internal affairs”), can be considered by the English court within the framework of English law. The judge referred to the doctrine of the state act (Foreign Act of the State Doctrine), according to which the British courts cannot evaluate the legality of the actions of a foreign government when such actions take place in the territory of another state. Another part of the arguments of Ukraine lies in the plane of international law and cannot be considered by the English national court.

Recall that Russia bought the issue of bonds of the Government of Ukraine at the very end of 2013, when Viktor Yanukovych was still in power. After Yanukovych’s flight from the country, the Arseniy Yatsenyuk government continued to pay coupons for bonds, 5% per annum, but it was not able to repay the bonds at the end of 2015.

In the residence of Viktor Yanukovych "Mezhigorye". June 2014 Raphaël Vinot

But even if Kyiv had money, he does not intend to return them. The fact is that Ukraine was able to agree on the restructuring of the debt by bonds with private creditors. Although Ukraine did not announce the default, it put the owners of its bonds before the fact: there is not enough money in the treasury. The restructuring ended in November 2015, according to the contract, 20% of the bond face value is written off, and their repayment period is transferred several years in advance. But investors received bonuses - the right to increased payments in the event of the growth of the Ukrainian economy. At the same time, the agreement stipulated that Ukraine is not entitled to offer Russia the best conditions than those who were achieved by private investors.

But Ukraine has not yet lost hope of defeating Russia in British ships. The Minister of Finance of Ukraine Alexander Danilyuk said that the decision of the high court of London is only the “first stage”.

“Ukraine received a judge’s permission to appeal. At the request of Ukrainian lawyers, the court also agreed to freeze today's decision until the next court meeting, which will occur no earlier than the end of April. At the next stages of the process, Ukraine will continue to defend its position and defend state interests, ”he said at a briefing after a meeting of the Cabinet of Ministers on Wednesday.

The Ministry of Finance intends to provide more detailed information regarding the decision of the court and the intentions of Ukraine after a while. Also, according to Interfax Ukraine, Danilyuk emphasized that the decision of the high court of London does not take into account economic and military aggression from Russia in relation to the country.

“They have just received a decision of the English court regarding the so -called“ Russian duty ”, which does not recognize the positions and arguments of Ukraine in this case. We respect this decision, but reasonably believe: such a decision does not take into account the objective facts of economic and military aggression against Ukraine and its people, which Russia without interruption committed since 2014, ”Danilyuk said.

Reuters surveyed experts-legal experts suggest that the court of appeal will make its decision in 2017 or at the beginning of 2018. If Russia wins in this instance, then it may try to recover the debt from Kyiv forced him, for example, arresting and selling foreign assets of Ukraine from the hammer, or you can simply resell the right to demand.