In December Ukraine declared default on these papers and did not pay money. Then Russia filed the lawsuit against Ukraine to London court as these bonds were regulated by the British law.
Ukraine believes that it was not the inter-state debt but the commercial papers. Russia, in its turn, states that it was “bilateral intergovernmental loan”.
RBK states that Ukraine recognized only $0.61 billion debt before Russia as it was formed in the beginning of 1990s for the gas supplies. Then the countries agreed that the debt will be paid from the annual payment of $97.8 million; however, the debt was frozen at $606 million soon.
According to Russia, Ukraine occupies the second place among the countries, which owe Russia. Belarus is on the first place with $7.55 billion debt.
Ukraine, in December 2015, allowed the default on Eurobonds purchased by Russia in December 2013 by funds of National Wealth Fund ($3 billion is the issue and $75 million - the last payment of coupon). Kyiv offered Moscow the debt restricting on general conditions along with the commercial creditors. Russia refused to discuss this variant insisting on the sovereign nature of the debt. The debt should be paid until January 1, 2016. However, it December 2015, Ukraine imposed the moratorium for the service of this debt and did not pay until January 1, 2016.
Then, on February 17, 2016, Russia’s Finance Ministry filed the lawsuit to High Court of London on the recovery of debt in Eurobonds.
On May 26, 2017 London court satisfied the appeal of Ukraine on stop of the execution of the decision dated March 29, 2017 until the finish of consideration of appeal of Ukraine at the Appeal Court.