Ukraine, Russia take loan battle to British Supreme Court

MOSCOW: Russia and Ukraine will turn to the UK Supreme Court in their long-running battle over $3 billion as Moscow seeks redemption of an old loan, the two countries said on Friday.

The long-running legal battle stems from Ukraine’s refusal to repay a $3-billion bond it sold to Moscow in 2013, less than two months before a popular uprising ousted the Kremlinbacked regime of Viktor Yanukovych.

Ukraine’s new, cash-strapped government of Petro Poroshenko eventually refused to repay the Eurobond debt, prompting Russia to launch legal action in London in 2016.

Ukraine argues that the debt was incurred under duress and that the terms of the loan were unfair, among other arguments. Russia argues that Ukraine’s failure to repay the loan should be classified as a default.

A series of legal battles ensued. In March 2017, a British judge threw out all of Ukraine’s arguments.

Kiev appealed and on Friday, Britain’s court of appeals found that the Ukraine-russia Eurobond case should go to a full trial.

“We will turn to the UK Supreme Court and we are sure that British justice will be able to look into this objectively and make an appropriate decision,” Russian Finance Minister Anton Siluanov told reporters.

Ukraine for its part welcomed Friday’s ruling. More than 10,000 people have been killed since the rebel insurgency broke out in Ukraine’s eastern Donetsk and Lugansk regions in April 2014 following Russia’s annexation of Crimea.

Ukraine and its Western allies accuse Russia of funnelling troops and arms across the border.