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Valparaiso Univ. Law School

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Tuesday, March 11, 2014

Probably Not the Best Time to Have Ukraine Owe you $3 Billion

According to Russian media, China has sued Ukraine for $3 billion, claiming Ukraine breached a loan-for-grain contract. 

Under the loan-for-grain contract signed in 2012, the Export-Import Bank of China provided the loan to Kiev in exchange for supplies of grain.

Ukraine's State Food and Grain Corporation used part of the $3 billion Chinese loan to instead provide crops for other countries and parties, including Ethiopia, Iran, Kenya and the Syrian opposition groups, the ITAR-TASS news agency reported, citing a Ukrainian parliament official.

The contract stipulated annual supply of a maximum 6 million tonnes of Ukrainian grain for a 15-year period.

China also delivered half of the agreed loan to Ukraine last year and Ukraine had planned to export four million tonnes of grain to China.

However, Chinese importers have so far received only 180,000 tonnes of grain, worth $153 million, from Ukraine, the report said.

 

More here.

http://lawprofessors.typepad.com/contractsprof_blog/2014/03/probably-not-the-best-time-to-have-ukraine-owe-you-3-billion.html

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