Bloomberg: Ukraine says Russian aggression means it can't repay $3 bln
Ukraine said that a Russian campaign of aggression and economic sanctions, including the occupation of the Crimean peninsula, made it impossible to repay a $3 billion bond at the center of a London lawsuit, according to Bloomberg.
Ukraine was under "massive, unlawful and illegitimate economic and political pressure" to take financial support from Russia instead of signing a 2013 agreement with the European Union, Ukraine said in the London court filing Friday, Bloomberg wrote.
The London court should dismiss the case, or delay it until Russia "complies with its obligations under public international law," Ukraine said.
Ukraine's conflict with Russia-backed militants in the east has pushed the country to the brink of bankruptcy, forcing it to seek an international bailout. Russia’s filed the London lawsuit to force Ukraine to repay the defaulted $3 billion bond, plus nearly $700,000 in interest for every additional day of default.
Read also"Yanukovych debt" not discussed with IMF: LozhkinRussian president Vladimir Putin bought the debt in December 2013 to bail out his ally, Ukrainian leader Viktor Yanukovych, who was ousted months later. Russia annexed Crimea in 2014 and has faced international criticism for supporting separatists in two eastern regions of Ukraine.
The stand-off shows little sign of abating amid continued violence and failed peace talks.