High Court of Justice in London to pronounce ruling on Ukraine-Russia Eurobond dispute on March 15

MOSCOW. March 13 (Interfax) - The British Supreme Court has named the date on which a ruling on the dispute over $3-billion Eurobonds of Ukraine issued in 2013 to the benefit of Russia, which has been on since 2016, will be pronounced - that will happen on March 15, 2023, the Ukrainian media said, citing the court's statement on a social media.

The Supreme Court noted that five judges held the hearing on November 11, 2021.

As reported earlier, the Law Debenture Trust Corporation plc, which represents the interests of Russia, lodged a claim with the High Court of Justice of England and Wales on February 17, 2016, to collect the Eurobond debt. The court approved a fast track hearing of the claim on March 29, 2017, thus actually dismissing main arguments of Ukraine and confirming its Eurobond obligations. The court ordered that Ukraine pay the nominal Eurobond value of $3 billion to Russia, alongside redemption of $75-million coupons, a penalty of $674,000 per every day of the delay, and some of the legal fees.

At the same time, the court allowed Ukraine to appeal the ruling, and the Appeal Court decided that the lower-tier court should hear the case in a full procedure. Ukraine proposed at the hearing that the dispute be considered by the International Court of Justice, yet Russia turned down the proposal.

The Law Debenture Trust Corporation plc is challenging the Appeal Court's ruling as a whole and Kiev's argument of coercion at the Supreme Court. Ukraine is mostly satisfied by the Appeal Court's ruling but challenges some provisions, saying that the Eurobonds were issued during the office of then President Viktor Yanukovych as a result of Russia's coercion.

The Supreme Court started hearing the appeal on December 9-12, 2019, but postponed its ruling. That happened after Ukraine and Russia joined the Pakistan International Airline Corporation v Times Travel (UK) Ltd, procedure regarding the coercion doctrine by British law, which was already under appeal at the British Supreme Court and the judgment on which could have an effect on the Eurobond dispute. The judgment was pronounced in August 2021, but did not answer the questions related to the Russian-Ukrainian dispute directly.

"Ukraine is still sure that the case will have a positive outcome," the Ukrainian Finance Ministry said in a statement after hearings in November 2021.

Ukraine believes that the Eurobond issue should be declared null and void by the court, as it was made under coercion, and Russia's actions should be analyzed by a court in a full procedure, during an open hearing. Or it would be fair to stop the proceeding if the British court decides that it is unable to consider arguments of Ukraine's defense for procedural reasons, the ministry said, speaking of another possible outcome.

Russia repeatedly said that Ukrainian arguments were untenable.