Ukraine-Russia Relations and Future developments

Kremlin: Kiev must pay its debt to Russia

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http://tass.com/politics/899486

Now for some light relief. These guys in Kiev first remind their supplier that they have taken them to court, then play the 'we don't really need it' card followed by the 'OK, if you force us to take it' manoeuvrer. Cue smiles all round in the Gazprom sales team.

The signing of an amicable settlement agreement between Naftogaz and Russia's Gazprom in a case reviewed by the Stockholm Arbitration is impossible, the head of Ukraine's state-owned gas firm said Monday.
Court Hearing on Russia-Ukraine Gas Dispute to Start on Monday - Naftogaz KIEV (Sputnik) — In June 2014, Gazprom switched Ukraine to a prepayment system for gas supplies over its massive gas debt. The same month, Naftogaz appealed to the Stockholm Arbitration, seeking a retroactive revision of its 2009-19 natural gas transit contract with Russia. "There were no attempts to reach an amicable settlement, and I think that in this situation it is impossible because there is a huge difference between the positions assumed by both sides. This arbitration is so important politically that I would not expect any amicable settlement under any circumstances," Andriy Kobolev said in an interview with 3STV television. The Arbitration Institute of the Stockholm Chamber of Commerce has recently begun hearings in a case pertaining the transit of Russian gas via Ukraine.

Read more: https://sputniknews.com/europe/201612051048200727-naftogaz-ceo-gazprom-stockholm-arbitration/

KIEV (Sputnik) — Ukraine may need Gazprom's assistance in worst-scenario case, Andriy Kobolyev said Monday.
"We think these gas reserves would be enough even if an emergency happens … In this [worst-scenario] case, a contact with Gazprom would not hurt but it would not be critical," he told the 3STV television channel. Kobolev also said Naftogaz is ready to buy gas from Russian energy company Gazprom if provided with a beneficial price and complementary agreement to the existing contract. "We say that if Gasprom makes us the offer we are waiting for with regard to the price, delivery conditions and primarily the signing of the agreement, [than] yes [we are ready to buy]," he added.

Read more: https://sputniknews.com/europe/201612061048201072-naftogaz-ukraine-gas-winter/

Ukraine and Russia could strike a deal on Russian gas deliveries during next winter at EU-mediated talks in Brussels, Ukraine’s gas major Naftogaz's chief Andriy Kobolyev said Monday.
KIEV (Sputnik) — An agreement on the so-called "winter package" for supplies of Russian natural gas to Ukraine could be reached at a trilateral EU-Russia-Ukraine meeting in Brussels on December 9, Kobolyev said Monday. "We’ll be negotiating the next winter season. We are interested in having a wide range of suppliers and if Gazprom – it knows what we want – agrees to accept our terms we will sign an appendix to the agreement – I know it will upset EU traders – and will consider buying its gas," Kobolyev told the 3STV television channel.


Read more: https://sputniknews.com/europe/201612061048201387-naftogaz-russia-winter-package-deal/

Not heard anything about this case this week, which means that it may not be going well for Kiev given they are the Party that might shout about it. Case closes today.

London High Court of Justice is scheduled to wrap up the four-day hearing on Friday. The Russian Finance Ministry said "practice shows the court can take from one to three months to render a verdict."

MOSCOW (Sputnik) – The Russian Finance Ministry said Friday it hoped that London's High Court of Justice would grant Moscow's petition to expedite a hearing on Ukraine's $3-billion Eurobond debt to Russia.

"We are confident that the defendant's argument does not hold water, and look forward to an early decision to uphold Russia's motion to expedite hearings of the claim filed against Ukraine," the ministry said. The London High Court of Justice is scheduled to wrap up the four-day hearing on Friday. The Russian Finance Ministry said "practice shows the court can take from one to three months to render a verdict."

Russia filed the lawsuit against Ukraine with the court in February 2016, demanding the repayment of the $3-billion principal and unpaid interest accumulated starting from the Eurobond's maturity date in December 2015. The debt was secured by former Ukrainian President Viktor Yanukovych's government in late 2013. Russia has repeatedly stated that Ukraine's failure to pay back the debt by the December 20, 2015, deadline should be classified as a default.

https://sputniknews.com/world/201701201049800013-russia-ukraine-debt/

Looks like the IMF are not going to be releasing any money to Kiev until the new team in Washington have a say. Maybe not until they hear if Russia is going to get their $3B from the London case.

The head of the International Monetary Fund (IMF), Christine Lagarde, expressed hope Thursday to tackle the technical details concerning the allocation of the fourth tranche to Kiev in the coming days.

MOSCOW (Sputnik) — Last September, the executive board of the IMF agreed to provide the new $1-billion tranche of financial aid to Ukraine, however, it has not been allocated.

"I have every reason to believe that the last few technical details which need to be addressed in the next couple of days will be satisfactorily resolved. Hopefully, by that time we will have met all the requirements," Lagarde said at a meeting with Ukrainian President Petro Poroshenko on the sidelines of the World Economic Forum meeting in Davos, as quoted by the president's press service.

On Tuesday, Poroshenko expressed hope to receive the fourth tranche from IMF in the upcoming weeks, since the country had fulfilled all the necessarily requirements.

https://sputniknews.com/europe/201701201049796238-imf-aid-tranche-kiev-deatils/

Oh dear this is serious, Kiev is stuffed good and proper. Don't you love the phrase 'summary judgement'? This is a full award plus costs heading down the track. My highlight.

Perhaps that next lot of IMF money should just be routed to Moscow

The UK High Court of Justice has decided against holding a full trial on Ukraine's outstanding $3-billion debt to Russia as Ukraine had no justifiable defense for failing to pay it back, judge William Blair said Wednesday.

LONDON (Sputnik) — Russia filed the lawsuit to make Ukraine repay its debt in February 2016 and the court finished its three-day hearings in January, with a ruling still pending. Ukraine in response demanded a full trial on the Russian lawsuit, alleging that this should be viewed in the context of what Ukraine claims is an occupation of eastern Ukraine by Russia. Russia had rejected claims of any involvement in the Ukrainian conflict.

"Ultimately, this is a claim for repayment of debt instruments to which the court has held there is no justifiable defense. It would not be right to order the case to go forward to a full trial in such circumstances. Accordingly, for the reasons set out above, the Trustee is entitled to summary judgment. The terms of that judgment require determination, and there is a number of consequential matters which the court will proceed to deal with," the judge said in a statement.

The decision thus upheld Russia's initial request for a quick trial without pleadings.

The debt was secured by Ukrainian former President Viktor Yanukovych’s government in 2013 and is now alleged by Ukraine as part of an external commercial debt. Russia argues that the bond is a sovereign loan provided by one state to another and demands to classify the failure to pay back the debt as a default.

auslander wrote:
However, this does say reams about the thoughts of UK in particular and eu in general in regards to Kiev, IOW looks like they've had enough.

Whilst I agree with your conclusion, my view, as expressed on occasions here, has always been that the English High Court was going to play this with a straight bat, to uphold their reputation as a Court they had too. The current view re Ukraine has clearly made that decision easier for them.

What it does clearly show is that Russia got and used really good advice on how to make a watertight loan in potentially testing circumstances. This is a good feather in the cap of those in London who gave and then implemented that advice. No doubt they will do it again. It is not for nothing that the City of London has the commercial and legal reputation it has.

Far be it for me to suspect a rat but the timing for this looks highly suspicious. Either this is Kiev dreaming of dosh in their pockets or maybe there seems to be a possibility that someone wants to give this money to the Ukraine before the case in London is final (it seems to be on its way to the Appeals Court now).

KIEV (Sputnik) — The International Monetary Fund (IMF) will review the disbursement of the next $1 billion loan tranche to Ukraine on Monday, Ukrainian Finance Minister Oleksandr Danilyuk said Thursday. "The work is complete through joint efforts. The issue of Ukraine will be considered by the IMF Executive Board on April 3," Danilyuk wrote on Facebook.The IMF approved a four-year $17.5-billion loan program in exchange for reforms in Ukraine in March 2015. The aid package to be paid out in installments is open for review on a quarterly basis.

Radicals threaten to terminate operation of Russian banks in Ukraine from April 10

Since January, Ukrainian radicals have declared a "war" to the affiliated branches of Russian banks in Ukraine

KIEV, April 6. /TASS/. Ukrainian radicals said that due to inaction of the authorities, they will independently stop the activities of the Russian banks in the country from April 10.

"We, Ukrainian nationalists, have decided to take the initiative in our own hands and stop the activities of these banks (Russian) on the territory of our state," the statement of the National Corps organization said.

Such a decision was made due to the absence of "real and effective actions of the National Bank of Ukraine (NBU) with regard to the activities of the Russian banks."

"Due to the fact that the NBU did not listen to the demands of Ukrainian nationalists to revoke the licenses of Russian banks, we will close them ourselves," the organization's website notes.

Since January, Ukrainian radicals, members of the National Corps nationalist party have declared a "war" to the affiliated branches of Russian banks in Ukraine, demanding that the authorities should withdraw their licenses of those banks adopt a law banning their operation in Ukraine.

On March 16, Ukrainian President Pyotr Poroshenko imposed sanctions against five banks with Russian state capital operating on the Ukrainian market. Restrictions were introduced against Sberbank, VS Bank, Prominvestbank, VTB Bank and BM Bank for one-year period.

After that the radicals suspended their campaign to give Ukrainian citizens time to take their money from those banks.

It is known that Russian banks with state capital are now in talks on selling their Ukrainian subsidiaries. In particular, on March 27, Sberbank announced the sale of 100% in the subsidiary PJSC "Sberbank" (Ukraine) to a consortium with the participation of a Latvian bank and a Belarusian company.


More:
http://tass.com/world/939826

First this, the Gazprom case in Stockholm, then the Russia case in London.

Gazprom's projects aimed at bypassing Ukraine amid the ongoing crisis facing that country have put Kiev's status as a transit state in jeopardy. Experts warn that a perfect storm of negative factors is making it increasingly likely that the value of Ukraine's impressive network of pipelines will soon be equivalent to that of scrap metal.

This week, Russia and Ukraine's years-long legal row over gas prices and delivery terms took a new turn, with Naftogaz chief commercial officer Yuri Vitrenko revealing that Gazprom may claim up to $80 billion from Kiev at arbitration hearings in Stockholm. The Russian energy company initially sued Naftogaz in 2014, making the claim that Kiev had not paid for supplies it had received in 2013 and 2014, and switching the country to a prepayment scheme. Ukraine responded with a counter-suit, demanding a retroactive revision of prices, and that Gazprom compensate Naftogaz for sums it allegedly overpaid.

Last year, Naftogaz's own financial accounting indicated that it had an outstanding debt to Gazprom of nearly $8 billion for the period between 2009-2013, with Gazprom calculating that the figure was actually $26.7 billion only for the years 2012-2014.

The Stockholm arbitration court is expected to make its final decision on the dispute at the end of this month and, according to most analysts, Gazprom stands the better chance of winning, given the solid case it has presented. This in turn has left Naftogaz officials nervously pondering about where they will be able to get the money for the settlement; the company, already paying 20% more for 'European' gas supplies (most of which is really Russian gas resold to Kiev by European companies), is drowning in debt as it is.

On Wednesday, Naftogaz director Vitrenko admitted that in case of a loss to Gazprom in Stockholm, Naftogaz will face bankruptcy, and may be forced to sell off its assets, with the exception of its pipeline infrastructure, which belongs to the state.

There is much more at the link https://sputniknews.com/business/201703241051929822-naftogaz-perilous-fate/

Ukraine denies entry for Russian boxing team members at European Championship

The 2017 EUBC European Boxing Championship will be held in the Ukrainian city of Kharkov between June 16 and 26

We were denied to enter the territory of Ukraine because we had previously paid visits to Crimea," Romanova said in an interview with TASS. "As of now, a total of eight people, including boxer Kushitashvili, will be sent back to Russia."

Umar Kremlev, the president of the Russian Boxing Federation, told TASS earlier that the Ukrainian organizers of the European boxing tournament had initially provided the Russian delegation with all necessary guarantees regarding security and Russia’s participation in the event.

"The Ukrainian side is discrediting itself," Kremlev told TASS. "We see no reasons why our delegation should be treated this way and still have no official response from Ukraine."

More:
http://tass.com/sport/951219

Ukrainian president signs law terminating Friendship Treaty with Russia

The parliament upheld the president’s decision not to extend the Treaty on December 6

KIEV, December 10. /TASS/. Ukrainian President Pyotr Poroshenko has signed a law terminating the Treaty on Friendship, Cooperation and Partnership with Russia, as he himself wrote on Twitter.

On December 6, Ukraine’s Verkhovna Rada (parliament) upheld the president’s decision not to extend the Treaty.

On September 24, Ukrainian Foreign Ministry notified the Russian Foreign Ministry that the document would be terminated on April 1, 2019.

Meanwhile, Poroshenko wrote on Facebook that the decision "not to extend the Treaty on Friendship and Cooperation between Ukraine and Russia should be considered not just as an episode but as part of our strategy to finally break with our colonial past and pivot towards Europe." According to the Ukrainian president, "visa-free travels, the Ukraine-EU Association Agreement and a tomos of autocephaly for the Ukrainian Church are also part of this strategy, as well as the country’s withdrawal from the CIS [Commonwealth of Independent States], the decision to enshrine Ukraine’s plans to join NATO and the EU in the Constitution, the creation of a strong professional army and the support of the Ukrainian language."

At the same time, Poroshenko has ordered the Ukrainian Foreign Ministry to complete an inventory of agreements with Russia. "We will continue to assess the utility of those agreements," the Ukrainian president pointed out. He also instructed the government to take immediate steps to establish an inter-agency coordination body "to work on a comprehensive claim concerning the damage caused by Russia’s military aggression."

Poroshenko stressed that the Treaty on Friendship with Russia had not been terminated earlier so that the country could "take advantage of its provisions to prepare numerous lawsuits to be filed with international courts."

According to the Ukrainian Foreign Ministry, there are more than 300 Ukrainian-Russian agreements and other documents.
Treaty on Friendship

Russia and Ukraine signed the Treaty on Friendship, Cooperation and Partnership in May 1997. The document, which entered into force in April 1999 for a term of ten years, could be automatically extended for ten-year periods provided the parties did not object. The document enshrines strategic partnership between the two countries and mutual obligations not to use one’s territory to harm the other’s security, as well as recognizes the inviolability of existing borders.

In October 2018, the period expired for the parties to announce their plans either to extend the treaty for another ten-year term or denounce the document. Ukraine chose to do the latter.


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http://tass.com/world/1035275