This page has been archived and commenting is disabled.
China Takes Sides: Sues Ukraine For $3bn Loan Repayment
It is widely known that Russia is owed billions by Ukraine for already-delivered gas (as we noted earlier, leaving Gazprom among the most powerful players in this game). It is less widely know that Russia also hold $3b of UK law bonds which, as we explained in detail here, are callable upon certain covenants that any IMF (or US) loan bailout will trigger. Russia has 'quasi' promised not to call those loans. It is, until now, hardly known at all (it would seem) that China is also owed $3bn, it claims, for loans made for future grain delivery to China. It would seem clear from this action on which side of the 'sanctions' fence China is sitting.
Via RBC Ukraine (Google Translate),
In 2012, The State Food and Grain Corporation and the Export-Import Bank of China agreed to provide Ukrainian corporation loan of $ 3 billion, which was planned to be on the spot and forward purchases of grain for future delivery to China.
...
Minister of Agrarian Policy and Food of Ukraine Igor Schweich confirmed that China has filed a lawsuit against Ukraine in a London court for the return of a loan of $3 billion.
The Ukraine minister disagrees with China's case:
"filed false information that there are no claims to us from China. According to the contract have different interpretations, different interpretations, which led to the treatment of the Chinese side in court Gaft who works in London. Registered dispute between the parties exists," - said Minister told reporters.
According to him, the parties agreed to take the following week a representative of the Chinese corporation for the possibility of peaceful settlement of the dispute.
"We, for our part, will do their steps to ensure that the other party or retract its announcement, or we found another way to a peaceful settlement," - he said. According to Schweich, a meeting will be held on March 26.
Ukraine appears to claim that these loans were made by the previous administration
The Minister added that the main problem lies in the fact that some leaders of PJSC "State Food and Grain Corporation of Ukraine" incorrect information. "These people are now removed during the protest," - said Schweich, noting that China "is relevant to understand."
In February 2014. the current Prime Minister of Ukraine Yatsenyuk said that "location $ 3 billion is not found."
While China has been relatively quiet in the background - though abstaining from the UN vote waqs a clear signal of relative support for Russia - this is a meaningful step in the direction of pressure against the West, as yet again, any bailout funds would flow straight to either Russia (gas bill sor callable bonds) or China (agriculture loans).
- 28872 reads
- Printer-friendly version
- Send to friend
- advertisements -


Do Androids Dream of Electric Sheep?
I posted this on 5 March. Read the rest to get a better glimpse into China/Ukraine interests. This deal was made before the change in gov. in Kiev and Putin's man Yanukovych :
Wed, 03/05/2014 - 21:23 | 4514702
Apostate2
'But disagreements multiply. The status of the deal after the change of government in Kiev is uncertain but another problem has arisen. China was last week reported to have started legal proceedings in London for US$3 billion compensation from Kiev for what it says is a breach of the 2012 agreement. Quoting a Ukrainian parliament official, the Russian ITAR-TASS news agency said the Chinese alleged that the State Food and Grain Corporation of Ukraine had used part of the ___ to finance crop supplies for other countries, including Ethiopia, Iran and Kenya. China had received grain worth just US$153 million, the report added. As well as denying that it had sold land to the Chinese, KSG said the agreement was only a letter of intent on the transfer of irrigation technology from China’s western territory of Xinjiang, where the quasi-military XPCC is the main economic actor.'
( 3 March 2014 Trusted Sources)
hey china heres how you get yer money back.
I THINK I WANT MY MONEY BACKhttp://www.youtube.com/watch?v=3ZzAS53gcDg
when one country tries to lawfully occupy another for whatever reason, the occupying country takes on a portion of the occupied country's debt that is relational to either the size, territory, occupation, population, etc of the territory being occupied. for example, ukraine handled the debts related to crimea until the soviets decided to (yet again) fuck around, and now after the referendum the soviets expect to re-annex crimea without handling a portion of the debt that their new-come assets are responsible for. errrr.... wrong. funny thing is that the crimea/china contracts have to do with just that, crimea/china. who ever owns crimea is responsible for the crimea debt to china... (=soviets). even funnier, damn soviets in the signing of the most recent sevestapol-russian black sea fleet agreement is that the two contracting parties are between ukraine and moscow, not between crimea and moscow, therefore despire whoever owns crimea, soviets still owe ukraine the yearly lease on the sevestapol docks. idiot soviets should really start thinking before they invade. srsly, story of their lives.
useless talkings
Soviet is defunct
when one country tries to lawfully occupy another for whatever reason, the occupying country takes on a portion of the occupied country's debt that is relational to either the size, territory, occupation, population, etc of the territory being occupied. for example, ukraine handled the debts related to crimea until the soviets decided to (yet again) fuck around, and now after the referendum the soviets expect to re-annex crimea without handling a portion of the debt that their new-come assets are responsible for. errrr.... wrong. funny thing is that the crimea/china contracts have to do with just that, crimea/china. who ever owns crimea is responsible for the crimea debt to china... (=soviets). even funnier, damn soviets in the signing of the most recent sevestapol-russian black sea fleet agreement is that the two contracting parties are between ukraine and moscow, not between crimea and moscow, therefore despire whoever owns crimea, soviets still owe ukraine the yearly lease on the sevestapol docks. idiot soviets should really start thinking before they invade. srsly, story of their lives.
International law also views as VOID all contracts and loans made by a government resulting from a coup and/or military force. That means that all loans taken out by the post-coup Kiev government are, under international commercial law, considered ILLEGITIMATE (called "Odious Debt"); and therefore the PEOPLE of Ukraine are legally NOT liable for the repayment of such debts to any creditors who extend such loans.
Therefore, ANY entity making any loans to KIev should NOT expect repayment - unless it has a rather HUGE army!
BBC told a Russian guest yesterday on air that her country was 100% isolated and that her country's attack on Ukraine would not stand. Fucking BBC cunts! BBC forgot Iran, Syria, India, China, Brazil, Argentina and a few others. BRICS are sick of king dollar, sick of being srtipped of their wealth by the dollar fiat system. This battle has just begun!
Sounds like a loan was made to be repaid in grain. If Ukraine has performed under the contract to any significant extent, I believe English common law would hold that the contract is not to be rescinded, but the parties ordered to perform. So, Ukraine would be ordered to ship some quantity of grain to China. If there is a provision in the contract for recission or liquidated damages, then Ukraine might owe money. It is not clear, however, how a London court has jurisdiction, however, unless the parties consent. Ukraine could just refuse to consent to jurisdiction.
Now Uk is just working for the new red boss
Hmm dont the chinese have an aircraft carrier that can enforce terms of contract. Maybe they should bomb govt in Kiev
no need.....so called govt of kyiv infighting already.
Ukraine cannot decline jurisdiction, that specified in the contract.
British common law does NOT apply here. Since this is a CONTRACT, only international commercial law (Maritime-Admiralty law) applies. And the ONE THING that is definitely NOT allowed under international commercial law is not fulfilling the terms of a contract!
3 billion dollars of wheat dat is a lotta dough.
Da problem is that Russia and China has a lot of problems between themselves. They are not friends. There is a lot of land disputes that has been there for decades.
Chinese are in Siberia now and in the Far East, enroaching slowly in. The same with Koreans. Even in Moscow Koreans and Chinese renting everything. China is pursuing their own interests and for now they are on the Russian side. In the future - who knows....
Russia is a mess, it is not stable neither economically nor politically. The only thing that Putin can cling on is nationalism. And this shit is powerful. And it is working!
Also, Russians are more resilient that Americans. They will survive harsh conditions. Americans are whimps and once food shortages or energy shortages start showing up it will be a disater for the US, people will start ripping each other throats. When shit hists the fan, Americans are totally unprotected. Russians are unprotected as well but they don't give a shit if a million or two people get whacked, the goal is to win. Are the Americans the same? Doubt it.
Russians think in a different universe. Russians and Americans just can't understand each other. Believe me on that. To be honest, I'd just make a deal with Putin and play it smart. Like split Ukraine and be happy.
So far US played it dumb and arrogant. It ain't gonna work. Russian propaganda inside Russia is working over time. RUSSIANS DO NOT LIKE AMERICA. Keep this shit in mind.
I live in the US, and I am a US citizen, so I am on American side. It's just reading this WEB site I realized that you guiys have no freaking clue about what Russia is and how Russians think.
useless talkings
You know nothing about Russia
Been in russia many times, my feeling the same as Zarussky except for big towns maybe.
It's important for China to stand with Russia at this point in time, as they expand their presence in the East of Russia. Russia will not pick a fight with China over any territorial issues at this time. That allows China a free hand in the eastern part of Russia.
China works well with the international banking community and will be prepared to change sides when the time is right. China needs their export markets firing on all cylinders. If their domestic economy slows, they need another external threat to motivate their people.
China is simply cuing up Russia for the fall at a later date. What you are watching is a game of chess unfold between two masters.
In the middle of 2012 Russian President Vladimir Putin vowed to boost trade and cooperation with China after meeting Chinese leaders as the sides push against Western calls for stronger action in Syria and Iran. Putin and President Hu Jintao agreed recently in Beijing to increase trade to $200 billion by 2020 from $83.5 billion in 2011. More on this story that got by many Americans in the post below.
http://brucewilds.blogspot.com/2012/06/putin-strenghtens-ties-with-china...
I am an American citizen who left the U.S. in 2009 and lives most of the year in Ukraine (Odessa and Simferopol, Crimea). I visited Ukraine numerous times in the 10 years prior to that.
I don't know the Russians in Russia all that well, but I know the Russian people in Ukraine extremely well. They value FAMILY above all else - God help the man who puts at risk another man's family! The word that probably best describes the Russians here is TENACITY !!! They will fight an opponent to the last man - and they will show NO mercy! They absolutely LOVE Americans as people, but they despise the U.S. government - and to them the distinction is very clear. They make the same distinction between their own government and their fellow citizens.
I have never really liked the people in Kiev, as they reminded me too much of the people in New York City - running around like rats with their tails on fire trying to cheat the next fellow out of his last penny. The people in Crimea and southern and eastern Ukraine (where the Russians are in the majority) are much more relaxed - they value family and enjoyment of life far more than money.They are incredibly friendly and always give you the benefit of the doubt.
My advice to the U.S. government is: Don't mess with the Russians, either in Russia or Ukraine. The American people are wimps compared to the Russian people here - they have endured unbelievable hardships in the past and are capable of doing so in the future. They will be a fierce enemy if provoked and will never give in.
I'm going to develop a specialty in writing contract language where the literal translation from one language to another changes its meaning entirely, and see what geopolitical mischief I can cause.
https://www.youtube.com/user/realrussiablog
here look at some of these vids may help a US guy like you understand russians better
da no fake and no boolsheet!!
Hey ZH because of the rate of technological advance it matters not wether we get through the economic collapse. We are still doomed by the spread of technological developments. There aren't many years left before the power to massively destroy becomes available to hundreds of millions of people. Fight club has a big bright future if there is one.
its sad when you are BROKE! Too many free lunches for too long. Lazy arses. Lets see how these Neo-Nazi's squirm out of these claims. I'm sure China will make some meanigful waves to really fark things up for the West. They know you can't trust the thiefing bitches in DC or EU.
China would be taking anyone to Court for monies owed, they're skint.
So does this mean China will also pay their pre-revolution bond debts that amount to $800B+ today?
http://www.atimes.com/atimes/Others/Escobar.html
http://atimes.com/atimes/Central_Asia/CEN-01-210314.html
I predict that the post-coup Kiev government will initiate military action against Russian troops on the Ukraine-Russia border, in an attempt to provoke a wider WAR involving the U.S. and NATO against Russia.
My wife traveled to Simferopol (Crimea) to vote in the referendum - she said there was absolutely NO coercion! The people were ecstatic about voting and the atmosphere was celebratory.
On the trip there, people were stopped and cars searched at the Ukraine-Crimea border. The guards explained that several cars and trucks loaded with weapons (rifles, pistols and even hand grenades - presumably from Kiev) had been seized trying to enter Crimea.
Right now thousand of people gather every day in Odessa center waving Russian flags and demanding a referendum similar to that of Crimea.
While I am NOT all that eager to see Odessa become a part of Russia, I would prefer that it become independent of the Kiev government, perhaps with the entire southern and eastern oblasts becoming an autonmous state (that is, an independent, non-aligned country). I see NO other viable alternative.
The post-coup Kiev government appears to be DESPERATE at this time, seeking some way to salvage its coup, retain power and establish its legitimacy. However, I doubt if the Russians in Ukraine will ever consider it legitimate - even after elections take place. The FEAR of the fascists and neo-NAZIs in Kiev is far too great for any reconciliation.