Investor Presentaiton
December 2013 Notes: update
Ukraine argues
that the alleged
contracts for the
Russian bonds are
void and
unenforceable
because of
Russia's wanton
threats and acts of
political and
military aggression
towards Ukraine
Key milestones
17 February 2016: The Law Debenture Trust Corporation
plc, acting on behalf of the Russian Federation as the sole
holder of purported Ukraine's US$ 3bn Eurobond, filed a
lawsuit against Ukraine in the High Court of England and
Wales seeking repayment of notes
•
Ukraine's position: the bond, sold on the eve of a 2014
revolution in Kiev, was induced by threats and acts of
unlawful political, economic and military aggression from
Moscow and was in any event void as being beyond
Ukraine's capacity and/or the Minister's authority,
amongst other reasons
Russia's position: English courts should hear the case
as a straight-forward default, and were not entitled to
take such aggression into account
29 March 2017: the High Court issued a Summary
Judgment decision in favour of the claimant
.
Ukraine appealed before the Court of Appeal of England
and Wales
22-26 January 2018: Appeal hearing took place
14 September 2018: A final judgment has been rendered
by the Court of Appeal that the case should go to a full trial
on Ukraine's duress defence
Details on Judgment (September 14, 2018)
The first instance judge was wrong:
•
.
to decline to permit Ukraine's defence of duress to
proceed to trial; and
to refuse to grant Ukraine a permanent stay of the
proceedings if Ukraine's defence of duress could not be
adjudicated by the English Court
Ukraine has lost on the issues of capacity, authority, implied
terms and countermeasures, as well as on the issue as to
whether there are any other compelling reasons for the
case to go to trial
Ukraine has therefore succeeded in its appeal and the
Summary Judgment has been set aside, subject to any
appeal to the Supreme Court
"It would be unjust to permit Law Debenture and Russia to
proceed to seek to make good the contract claim without
Ukraine being able to defend itself by raising its defence of
duress at trial."
The Law Debenture Trust Corporation p.l.c. v Ukraine,
Approved Judgment, Court of Appeal of England and Wales
September 14, 2018
September 2019
Source: Ministry of Finance
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