Russia has charged Ukraine with penalty interest for Yanukovych's debt of $3 billion
According to Russia, Ukraine's debt as of March 20th, together with the interest, amounts to 3.137 billion dollars. This follows the claim filed by the Law Debenture Trust Corporation company, which represents Russia, to the English Court against Ukraine, RBC reports.
The lawsuit states that on December 21st, 2015, when the repayment of securities was due, Ukraine did not pay 3.075 billion dollars which violated the trust management agreement (Trust deed) with the Law Debenture Trust, the loan terms and an agency agreement with Citibank as the paying agent and the registrar.
"Due to Ukraine’s failure to pay, the trustee and the Ministry of Finance of the Russian Federation (as the only securities holder) suffered damages that have to be assessed, including the unpaid $3.075 billion, penalty interest, as well as a variety of other payments made to protect their rights in a framework of the issued bonds," the lawsuit states.
The plaintiff believes that interest should be charged at a rate of 8% (established by the law rate for the debt recognized by the court) or at a rate of 5% (according to the terms of securities), or at alternative rates, pending on the court’s decision.
The claim states that as of February 16th, when the lawsuit was filed, Ukraine owes Russia 3,114,633,000 dollars (at a rate of 8%), or 3,099,771,000 dollars (at a rate of 5%). The plaintiff also asks the court to appoint an extra payment in favor of Russia in addition to the main debt and accrued interest.
The lawsuit was filed in the High Court of England. It will be considered by the Financial List, established in 2015, which specializes in British and international disputes relating to securities, derivatives, foreign and commodity markets.
Ukraine has hired the Los Angeles based Quinn Emanuel Urquhart & Sullivan in defense.
Ukraine recently informed the High Court of England of its intention to object to all claims of the Russian Federation on a debt of $3 billion. Earlier, Russian Prime Minister Dmitry Medvedev said that a lawsuit to recover the debt of $3 billion from the Ukraine is being prepared and that, according to Russia's opinion, their chances in winning are very high.