15 Mar 2023 16:16

UK Supreme Court sends Ukraine-Russia dispute over $3 bln Eurobonds to full public trial, Kiev sees it as its victory

MOSCOW. March 15 (Interfax) - The UK Supreme Court has ruled that the case over Ukraine's $3 billion Eurobonds issued in 2013 under President Viktor Yanukovych in favor of Russia should be sent for a full public trial.

Ukrainian media reported on Wednesday, citing the court's message on social media, that the court denied the company representing Russia's interests to hand down a ruling in a summary judgment.

Previously, the Law Debenture Trust Corporation plc, which represents Russia, filed a lawsuit with the High Court of Justice of England and Wales on February 17, 2016 to recover the debt on the Eurobonds.

On March 29, 2017, the Court approved an expedited hearing of this lawsuit, actually rejecting Ukraine's main objections and agreeing with the existence of its obligations on the Eurobonds. In its decision, the Court ordered Ukraine to pay Russia the nominal value of $3 billion Eurobonds, the outstanding coupon of $75 million, as well as penalty interest accrued for $674,000 for each day of delay, and part of the costs of the proceedings.

At the same time, the court gave Ukraine the right to appeal this ruling. For its part, the court of appeals ruled that the first instance court should consider the case under the full procedure.

The Law Debenture Trust Corporation plc challenged the ruling of the court of appeals as a whole and the duress argument made by Kiev in the Supreme Court. Ukraine, mostly pleased with the appeal court's verdict, challenged a number of arguments from its decision, insisting that the bonds were issued as a result of duress while Yanukovych ruled the country.

Ukrainian media noted that Kiev had welcomed the court's ruling on Wednesday. Ukrainian President Vladimir Zelensky, Prime Minister Denis Shmygal and the Ukrainian Finance Ministry regarded this as a victory for Kiev in their statements.

Meanwhile, Russian analysts believe that the review of the Eurobonds dispute under the full procedure does not change the essence of the case.