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Asters Succesful for Ukraine in English Court of Appeal on Eurobond Dispute with Russia

Asters Succesful for Ukraine in English Court of Appeal on Eurobond Dispute with Russia

Deals and Cases

Asters, in cooperation with Quinn Emanuel Urquhart & Sulliva,n is reporting success in the English Court of Appeal in its representation of Ukraine in a USD 3 billion Eurobond dispute with Russia.

Russia’s claim was brought against Ukraine regarding its alleged debt under 3 billion USD bonds purportedly issued by Ukraine in 2013 and 100% taken up by the Russian Federation by The Law Debenture Trust Corporation plc., as trustee under the Eurobonds, acting at Russia’s direction and for its benefit.

According to Asters, ”Ukraine disputed the validity of the loan on various grounds, principally on the grounds of duress arising from Russian threats and aggression, including with regard to Crimea and the eastern Ukraine, leading up to the entry into the loan and beyond. The case raises novel issues concerning the non-justiciability/foreign act of state principle and the capacity of states to contract, and will undoubtedly be the leading English case on the application of those principles in a commercial context.”

Asters reports that Court of Appeal "unanimously overturned the decision of Mr. Justice Blair of the English High Court, and found that Ukraine’s defense of duress is justiciable and should be the subject of a trial.  The Court of Appeal also reversed the Judge on Ukraine’s alternative case, and found that if the duress defense were non-justiciable, that would require a stay of the proceedings since the claim could not be fairly adjudicated without considering Ukraine’s defense."

The Court of Appeal granted both parties permission to appeal to the Supreme Court.

Asters’ team was led by Partner Svitlana Chepurna and included Counsel Oksana Legka and Associates Kateryna Kylyvnyk and Olena Nikolenko, all working under the general direction of the firm's Managing Partner Oleksiy Didkovskiy and Senior Partner Armen Khachaturyan.

Russian Knowledge Partner

Founded in 1993, Egorov Puginsky Afanasiev & Partners is the leading full-service law firm in the CIS with offices in Russia, Ukraine and Belarus and associated offices in the UK, the USA and Cyprus.

We advise its clients in many areas of law, including: dispute resolution in Russia and abroad, corporate law, M&A, antitrust issues, project finance and PPP, restructurings and insolvencies, energy and natural resources, property management and privatization, environment, technical regulation and industrial safety, banking and finance, intellectual property, criminal law, real estate and construction, taxation, family and labour disputes, marine and transport law, and international trade and customs.

We combine high academic qualifications, internationally acknowledged moral and ethical values, senior partners' professional experience and practical abilities with the vigour and knowledge of younger attorneys that enables thus providing clients with reliable, first-class service according to both Russian and western standards through a flexible structure.

All News about, and Legal Analysis by, Egorov Puginsky Afanasiev & Partners can be found here.

Firm's website: www.epam.ru


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