KIEV BEAT MOSCOW IN AN APPEAL ON THE STATE DEBT
The next meeting will consider the case of Kiev against Moscow on the state debt, writes Bloomberg. This conclusion was taken on September 14 at the Court of Appeal in the UK. The final date of the new meeting is still unknown.
The Russian side is absolutely not satisfied with this decision, they are going to challenge it in the UK Supreme Court, Anton Siluanov, chairman of the Russian financial department, said.
He believes that the adoption of the appeal is not the right verdict, it postpones the final sentence on the Ukrainian state debt to Russia. Siluanov hopes for a fair decision of the Supreme Court of England, which will resolve this situation.
History of state debt of Ukraine.
It is a question of Eurobonds for $ 3 billion, which the Kremlin gave as a loan to Ukraine before the 2014 revolution. Russia allocated money from its state funds. The Russian Federation State Welfare Fund takes into account this money up to this day, which makes up 4% of the total fund.
It was for the same amount that Russia bought Ukrainian Eurobonds in 2013. The terms of the deal became non-market - the coupon rate was 5 percent per annum. Throughout 2015, Ukraine fulfilled its obligations on the debt. But later the securities lost the value due to default and Ukraine vetoed the return of the debt, explaining this as problems within the country.
To address this situation, the Cabinet of Finance of Russia appealed to the court of London. In 2017, the court ordered Kiev to pay $ 3 billion. Also obliged to pay 75 million as interest on penalties. That should not be forgotten that for each delay the amount of payment grows by $ 673 thousand. Ukraine appealed this decision to the Court of Appeal of England.