Mr Justice Blair has today handed down judgment in the latest hearing of the ongoing dispute between Ukraine and Russia concerning an alleged $3 billion loan made to Ukraine in 2013.  Ukraine disputes the validity of the loan on various grounds, including on grounds of capacity and duress arising from Russian action (including in Crimea and eastern Ukraine).  Russia’s claim is brought by The Law Debenture Trust Corporation plc as trustee under the Bond.  The case raises novel issues concerning the conflict of laws and non-justiciability.

Ukraine’s appeal against Mr Justice Blair’s earlier judgment on these matters is due to be heard by the Court of Appeal in January 2018.  Mr Justice Blair has today granted Ukraine a stay of enforcement of that earlier judgment pending the appeal, and rejected the Claimant’s arguments that the stay and Ukraine’s appeal should be subject to conditions.  The Judge also rejected the Claimant’s application for security for costs, and its argument that the contractual indemnity in the Note Trust Deed extended to provide a full indemnity of all costs incurred by the Trustee.

The full text of the judgment is here.

Bankim Thanki QC and Simon Atrill are instructed by Quinn Emanuel Urquhart & Sullivan UK LLP (Alex Gerbi) on behalf of Ukraine.  Norton Rose Fulbright LLP (Michael Godden) act for The Law Debenture Trust Corporation plc and instruct Mark Howard QC and Oliver Jones of Brick Court Chambers.