Ukraine has vowed to vigorously defend its interests as it gears up for a London legal battle with Russia over unpaid debt.
Ukraine failed to repay a €3bn (£2.3bn) loan in December. The country argues it cannot repay the loan as it would favour Russia over other investors – Russia did not take part in a restructuring of Ukraine’s debt, which Ukraine organised with a number of other lenders.
However, Russia said it offered to allow Ukraine to pay three €1bn instalments over the next three years.
Read more: Ukraine gears up for London legal battle
The Ministry of Finance of Ukraine said in a statement:
Following the public announcement yesterday by Finance Minister Siluanov of the Russian Federation, the Ministry of Finance of Ukraine acknowledges the formal commencement by The Law Debenture Trust Corporation PLC, the Trustee under the December 2015 Eurobonds, of proceedings before the English High Court of Justice. Ukraine intends and is fully prepared vigorously to defend its interests in respect of the December 2015 Eurobonds before the English Court.
Russian Finance Minister Anton Siluano formally announced the proceedings yesterday.
"The lawsuit was filed after repeated unsuccessful attempts to engage Ukraine in a constructive dialogue on debt restructuring," he said.
Russia lent the money to the pro-Russian government of Ukraine shortly before it was ousted and replaced by current regime.