Court again delays case on amicable agreement between DRGN Limited and Russian Finance Ministry
The arbitration court of Moscow has again postponed the hearing of a dispute between Cypriot-based DRGN Limited, which is the claimant, and the Finance Ministry of Russia as part of litigation on bonds issued by Crimea in 2011.
The ruling was issued on February 11, 2016.
At the hearing the claimant presented the petition to send a request to the National Bank of Ukraine (NBU) to receive an extract from the register of holders of the bonds. Despite counter-arguments of defendants, the court ruled that the petition of the claimant is to be satisfied and ordered to request the extract from the register of holders of A Series bonds issued by Crimea.
The next hearing is scheduled for June 7, 2016.
The court proposed that the sides discuss the amicable agreement and present the calculation of the cost of bonds in Russian rubles under the official exchange rate of the Ukrainian hryvnia to the ruble set by the Central Bank of Russia on the date of payment to the next hearing.
If additional proofs are not presented, the case could be heard with proofs available, the court said.
As reported, Cypriot DRGN Limited on April 6, 2015 lodged a claim with the arbitration court of Moscow against the Finance Ministry of Russia, the State Council of Crimea, and the Council of Ministers of Crimea, worth 82.096 million Russian rubles, demanding payment under liabilities for bonds of the Supreme Council of Crimea, issued in 2011 and which matured on June 20-22, 2014.
The claim is an individual claim made by the Cypriot company which bought bonds from Dragon Capital as the underwriter.
The claim is estimated at EUR 1.142 million without interest for the use of third parties' assets accrued by the date when the court's ruling will have to be executed.
The hearings have been rescheduled several times before – on October 15, 2015, and November 16, 2015.
The issue of the Crimean bonds was registered by Ukraine's State Securities and the Stock Market Commission on June 14, 2011.
A Series bonds were issued to the tune of UAH 133 million with a 14.5% interest rate per annum and quarterly coupon payments.
The funds raised from the placement of the bonds were used to develop local infrastructure in Crimea.
