EN|RU|UK
  2900

 Russia needs more time to respond to Ukraine's objections to Yanukovych's loan

The Law Debenture Trust Corporation Plc, which represents the interests of the Russian Federation in the case of Ukraine's default on $3 billion Eurobond to Russia, asked for extra time to prepare and submit a response to the objections of Ukraine.

Censor.NET reports citing Ministry of Finance press service.

Read more: Ukraine files defense to claim on 'Yanukovych's debt' with English High Court of Justice

"On May 27, 2016, Ukraine filed with the English High Court of Justice its appeal against a claim by The Law Debenture Trust Corporation PLC, the trustee stipulated in the document pursuant to which the Russian Federation granted Ukraine a loan of $3 billion in December 2013. The plaintiff had to respond to Ukraine's objections until June 17, 2016," the Ministry of Finance recalls.

"However, the trustee has filed a request to grant him additional 28 days (until July 15, 2016) for the preparation and submission of its reply. Ukraine has agreed to this request, and therefore looks forward to receiving the response of the plaintiff within the said period," the statement notes.

Read more: Poroshenko signs law on unlimited moratorium for Yanukovych's debt payments to Russia

"Ukraine welcomes the opportunity in these proceedings to lay out the full facts and circumstances concerning the period leading up to and following the issuance of the December 2013 Eurobonds. Those are crucial for proper understanding and deciding on the claim that had been brought explicitly at the request and for the benefit of the Russian Federation," the Ministry stressed.

As previously reported, Dec. 17, 2013, a meeting of the Russian-Ukrainian Interstate Commission with the participation of Russian President Vladimir Putin and Viktor Yanukovych took place in Moscow. As a result, a package of 14 documents was signed. In particular, the Russian government promised to place part of its reserve fund in the amount of $15 billion in the form of Ukraine's state-guaranteed securities - the two-year Eurobonds at a coupon rate of 5 percent. Russia transferred $3 billion to Ukraine in Dec. 24, 2013, but the following tranches were not made, as Yanukovych and his allies fled Ukraine after mass political murders in the center of Kyiv.

Read more: Russia filed lawsuit against Ukraine over "Yanukovych's loan," - Russia's Finance Minister Siluanov

On Aug. 28, 2015, Russian Finance Minister Anton Siluanov said Russia would demand the full repayment of Ukraine's Eurobonds worth $3 billion in December that year, and that he already knew how these funds would be spent - allegedly on the development of infrastructure. On Sept. 17, Prime Minister of Ukraine Arsenii Yatseniuk said Russia either had to accept the Ukraine's conditions on debt restructuring or get nothing.

President of Ukraine Petro Poroshenko in an interview with Bloomberg described the Russian loan of $3 billion as a bribe that Yanukovych received from Moscow for surrendering Ukraine's European integration.

On May 4, 2016, Poroshenko signed the law, previously adopted by the Verkhovna Rada, which made the temporary moratorium on Ukraine's repayment for its Eurobonds purchased by the Russian Federation in December 2013 unlimited.
 
 
 
 up