Ukraine is due to file its defence against repaying a $3bn loan to Russia today, in a case that threatens to undo some of the progress made in resolving conflict between the two countries.
Last year, Ukraine attempted to include the loan in a plan to restructure $18bn of debt, but Russia rejected the deal and argued that it could not be considered in the same light as commercial paper, reports Elaine Moore.
On 20 December the bond went unpaid and Russia began legal action in February, seeking full repayment plus interest and fees.
Ukraine was due to file its defence in March, but has been granted two extensions due to a political crisis that has also led the International Monetary Fund to put its support programme on hold.
The loan was provided to Ukraine’s former, pro-Russian president Viktor Yanukovych in 2013 months before his administration was ousted in a pro-western revolution.
The case is being heard in London’s High Court as the bond was issued under English law
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