Russia files lawsuit against Ukraine over $3 billion debt
On the 17th of February, the Ministry of Finance of Russia filed a lawsuit against Ukraine with the Supreme Court of London for the recovery of a $3 billion debt in the form of Eurobonds. Russia provided this loan to Ukraine in December 2013, the Minister of Finance, Anton Siluanov reported.
“The lawsuit was filed after unsuccessful attempts to contact Ukraine for a constructive dialogue with regard to debt restructuring,” Siluanov stated and was quoted by Interfax. He called a court settlement of this dispute a historical precedent.
However, the Deputy Finance Minister, Sergei Storchak, noted that the lawsuit does not exclude the possibility of a resolution of this issue within the negotiating process. As in any other judicial process concerning commercial issues, the process of consideration of the lawsuit can develop at the same time as negotiations between the parties. Storchak explained to Interfax that if an agreement is reached by the parties, the judicial process can stop.
The law company, Cleary Gottlieb Stehen and Hamilton will represent the interests of Russia. During mid-2015, Kiev proposed to Moscow that the debt be restructured under equal conditions as with commercial creditors. However, Russia refused to discuss this option, insisting on the sovereign nature of the debt.
In December 2015, the Board of Directors of the International Monetary Fund (IMF) recognized the loan as an official debt. On the 18th of December, the Ukrainian government declared a moratorium on the repayment of this debt.