British Supreme Court sides with Ukraine in $3 billion loan dispute with Russia

March 15 (UPI) -- The Supreme Court of the United Kingdom has ruled in favor of Ukraine in an ongoing fiscal dispute with Russia.

Russia, via proxy companies in Britain, has tried to compel Ukraine to repay $3 billion in loans via bonds that were issued under the regime of Viktor Yanukovych, without having their conduct toward Ukraine scrutinized.

In December 2013, Yanukovych agreed to a $15 billion loan via Ukrainian securities, which would be placed and purchased by Russia.

Ultimately $3 billion were put onto the Irish stock exchange and purchased by Russia. After Yanukovych fled to Russia in 2014, the Ukrainian government asked to restructure the loan.

In 2015, the Ukrainian government argued that the debt should be restructured and issued a moratorium on repayment.

Russia intermediaries filed suit in London in 2016, and in 2017, the High Court of London ordered the Ukrainian government to repay the bonds. Ukraine appealed the decision.

Russia argued that a summery judgment should be issued compelling repayment from Ukraine. Ukraine argued that the bonds were issued under duress due to the influence of the Russian government on Yanukovych, as well as due to military threats.

On Wednesday, the British Supreme Court tweeted a link to its decision with a short summery explaining "the Supreme Court unanimously holds that the Trustee is not entitled to summery judgement."

Justice William Blair said in the court's judgment Wednesday that "Russia's threats to use force in 2013 should be considered in the context of the real use of force in 2014."

The decision means that Russia's conduct toward Ukraine will now be a factor in deciding the outcome of the repayment.

The Ukrainian Finance Ministry praised the outcome.

"In a great victory for justice and the rule of law, the UK Supreme Court has today held that Ukraine's defense of duress, based on Russia's threats of aggression against Ukraine, should be sent for a full public trail," the ministry said in a statement.

"The Supreme Court has said that Ukraine will succeed unless Russia's pressure is shown to have played no part in Ukraine's decision," the ministry said.

Ukrainian President Volodymyr Zelensky called the outcome a "decisive victory."

"Today Ukraine secured another decisive victory against the aggressor, this time in the UK Supreme Court in the $3 billion bond case. The Court has ruled that Ukraine's defense based on Russia's threats of aggression will have a full public trial. Justice will be ours," Zelensky tweeted.