British justice rules in favor of Kiev in a case of an unpaid loan in Moscow
Britain’s Supreme Court on Wednesday ruled in Ukraine’s favor over a $3 billion Russian loan made in 2013 that Kiev won’t repay, saying the case should go to trial rather than summary judgment, as by Moscow demanded. Volodymyr Zelenskyy tweeted on Wednesday hailing “another decisive victory against the attacker, this time before the UK Supreme Court.”
The Law Debenture Trust Corporation, a trust acting on behalf of Russia, had requested summary judgment, “a procedure enabling the court to rule without a trial when the defense has no real prospect of success and there is no other compelling one.” Reason gives reason for a trial,” the Supreme Court said in a statement. But “Ukraine will be allowed” to defend its position “in a trial before the British High Court” on the basis that the Kiev loan “was accepted under duress (…) due to a threat of alleged use of force by Russia was,” the judges continued.
The highest British court thus confirmed an appeal judgment. A lower court ruling originally agreed with Russia, ordering Ukraine to pay the amounts at the heart of the dispute. Ukraine announced in late 2015 that it was refusing to repay this debt. Russia announced in February 2016 that it had filed a lawsuit against Kyiv in the UK courts to receive a payment. Ukraine claims it accepted this loan “due to massive economic and political pressure from Russia,” the Supreme Court statement said. In particular, Kiev argues that the decision was taken following pressure from Moscow against pro-Russian President Viktor Yanukovych, who was then ousted in the February 2014 uprising. In the same year, the Crimean peninsula, a Ukrainian territory, was annexed by Moscow.
The Notes were issued by Ukraine in 2013 with an interest rate of 5% per annum on the basis of an English law contract. Ukraine initially made some payments before refusing to pay. The Supreme Court clarified on Wednesday that the hearing on which its ruling was based took place before Russia invaded Ukraine in February 2022.