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UK Supreme Court backs Ukraine over Russian ‘duress’ loan

Ukraine’s President Volodymyr Zelensky declared a “decisive victory” over Russia after UK judges ruled on Wednesday that a long‑running financial dispute […]

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Ukraine’s President Volodymyr Zelensky declared a “decisive victory” over Russia after UK judges ruled on Wednesday that a long‑running financial dispute can proceed to a full trial. The Supreme Court in London rejected a bid by a Russian‑backed investment trust to dismiss the case, which concerns a $3 billion loan taken out in 2013. “Today Ukraine secured another decisive victory against the aggressor, this time in the UK Supreme Court in the $3 bn bonds case,” Zelensky tweeted. He noted that the court had ruled Ukraine’s defence—based on Russia’s “threats of aggression”—would receive a full public trial, adding, “Justice will be ours.” Ukraine’s finance ministry called the decision “a great victory of justice and the rule of law.”

Ukraine argues it was forced to issue the Eurobonds to Russia under duress shortly before Moscow annexed Crimea in 2014. The bonds were scheduled for repayment in December 2015, but Ukraine refused, contending that Russia sought to impede its closer engagement with the European Union by binding it into an unfair arrangement. Russia brought the case in February 2016, claiming it was suing only after “repeated unsuccessful attempts to engage Ukraine in constructive dialogue about restructuring the debt.” A lower UK court had initially endorsed Russia’s attempt to throw out Ukraine’s defence, but that decision was overturned on appeal.

A panel of five Supreme Court judges unanimously sided with Kyiv, agreeing with the appeals court that Ukraine has “an arguable and justiciable defence of duress.” Their judgment addresses only the circumstances surrounding the loan at the time and does not consider Russia’s invasion of Ukraine last year. There was no immediate response from Moscow, and no trial date has been set yet.

Ifunanya

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