Ukraine files defence at London court against debt lawsuit by Russia

Ukraine has filed a defensive pleading at London's High Court against a lawsuit initiated by Russia over Kiev's failure to repay its 3-billion-U.S.-dollar debt, the Ukrainian Foreign Ministry said Friday.

"Ukraine's Defence explains that the loan agreement is invalid and unenforceable for multiple reasons," said a statement on the ministry's website.

According to the statement, in its defensive plea, Ukraine claimed that the debt agreement was "procured through duress".

Besides, Kiev is considering the deal as invalid because it has allegedly violated the borrowing limits of Ukraine, which were in place when the document was signed, the statement said.

The Ukrainian government borrowed the two-year loan in the form of Eurobonds from Russia in December 2013 to shore up its economy.

Faced with the financial crisis, Ukraine has failed to repay the loan on time, offering Russia to join its debt-relief agreement with other international creditors, which envisages a 20-percent write-off of Kiev's debt and a 4-year extension of the loan repayment period.

Russia has rejected the proposal, suggesting instead a debt-relief plan, under which Ukraine could repay its arrears in three installments of 1 billion dollars each within the next three years.

As the two sides failed to agree on the terms of the repayment, Moscow has filed a lawsuit against Kiev over the debt at London's court. Endit