Ukraine reimburses part of expenses in sovereign debt dispute with Russia
MOSCOW, September 21 (RAPSI) – Ukraine has carried out a ruling of the London High Court by reimbursing part of court expenses in relation to a dispute with Russia over a $3 billion sovereign debt, the Russian Finance Ministry’s statement reads on Thursday.
According to the ministry, the Law Debenture Corporation PLC company, representing Russia’s interests, has received £1.16 million payment from Ukraine.
In March, the London court ordered Ukraine to pay Russia the face value of the former’s bonds, $3 billion, as well as $75 million of coupon payment and interest. In addition, Ukraine was obliged to reimburse Russian legal costs of £2.8 million pounds.
Ukraine’s sovereign debt to Russia goes back to a deal concluded by Russian President Vladimir Putin and former Ukrainian President Viktor Yanukovych in 2013. The deal stipulated buying of Ukrainian bonds amounting to $15 billion by Moscow. Russia bought $3 billion on December 20, 2013. Ukraine had to pay the debt by December 20, 2015.
On December 21, 2015, Ukraine fell into default with the debt repayment. In February 2016, Russia lodged the lawsuit against Ukraine with the London High Court.