Russia has agreed to allow Ukraine extra time to file its defence with a British court over a US$3 billion (2 billion pounds) debt to Russia, Moscow and Kiev officials said on Friday.
Russia's Finance Minister Anton Siluanov attends a session of the
Moscow Exchange Forum in Moscow, Russia, April 12, 2016. REUTERS/Maxim
Shemetov
KIEV/MOSCOW: Russia has agreed to allow Ukraine extra time
to file its defence with a British court over a US$3 billion (2 billion
pounds) debt to Russia, Moscow and Kiev officials said on Friday.
Russia filed a lawsuit against Ukraine in February at London's High
Court demanding repayment of the US$3 billion Eurobond, which matured on
Dec. 20. Meanwhile Ukraine insists Russia must accept restructuring
terms agreed with other foreign creditors.Russia said on Monday it would not agree to Ukraine's request for more time to file a defence, but on Friday it reversed its position.
"Russia has belatedly conceded to the entirety of the additional time Ukraine has requested," Ukraine's finance ministry said in a statement.
"(It is) pleasing that Russia has eventually seen sense on this issue and avoided wasting the Court's time in dealing with an issue which Russia was destined to lose," it said.
Russian Finance Minister Anton Siluanov said that Moscow was giving the new Ukraine government a chance.
"We have given the new government of Ukraine extra time in
order for Kiev to soberly assess the situation, revise previously stated
positions and begin good faith negotiations with Russia," Siluanov
said.
A source familiar with the proceedings said the court order
stated this extension was final and no further extensions would be
granted.
The lawsuit has become yet another bone of contention
between the one-time allies, whose relations are at an all-time low
following Russia's annexation of Ukraine's Crimea peninsula and a costly
pro-Russian separatist conflict in eastern Ukraine.
Originally, Ukraine had until March 19 to file its defence
although it was granted an extension until April 16. It has since asked
for the second extension until May 27.
The Eurobond in question was issued by the government of
former president Viktor Yanukovich just two months before he fled to
Russia in February 2014 amid bloody street protests. They were triggered
by Yanukovich seeking to halt Ukraine's move towards European
integration in favour of closer economic ties with Russia.
Ukraine refused to repay the bond, including it in the
external debt it earmarked for restructuring as part of an International
Monetary Fund-led bailout programme. Moscow insists the bond is
sovereign debt and should not be part of the programme.
(Reporting by Alessandra Prentice and Lidia Kelly;
Additional reporting by Karin Strohecker in London and Darya Korsunskaya
in Moscow; Editing by Richard Balmforth)
- Reuters
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