The countries are now in the middle of a dispute about the failure of Ukraine to repay a bond worth $3 billion.
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“The lawsuit was filed after repeated unsuccessful attempts to encourage Ukraine to [engage in] a constructive dialog on debt restructuring”, Siluanov said, according to Reuters.
Moscow has filed a lawsuit against Ukraine at London’s High Court over Kiev’s 3-billion-U.S.-dollar debt, Russian Finance Minister Anton Siluanov said Wednesday.
Relations between the two neighbours have been fraught over a conflict between pro-Russian separatists in east Ukraine and Ukrainian government forces.
For example, a few days before Russian Federation announced its intentions to sue Ukraine, Ukraine cut the power supplies to Crimea, which Russian Federation annexed in March 2014, again. “I expect that the process in the English court will be open and transparent”, he said.
The loan had been handed to Kiev shortly before former president, Viktor Yanukovych, left Ukraine in 2013 after mass protests erupted.
Ukraine had until December 21, 2015, to pay back the investment, but it missed that deadline and negotiations between Kiev and Moscow hit a roadblock as the two countries could not agree on new terms, the Russian government broadcaster First Channel reported.
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Ukraine, which has separately reached an agreement with private creditors to restructure its sovereign and sovereign-guaranteed debt, insists the Eurobond is a commercial debt and that it can not offer Russian Federation a better deal than other creditors.
