The Moscow City Court stopped considering the claim of the investor Marchenkov to the Ministry of Finance of Belarus

The Moscow City Court stopped considering the claim of the Russian investor Alexander Marchenkov, demanding from the Belarusian Ministry of Finance early repayment of Eurobonds he bought for $280,000. The court decided that this case does not fall within the competence of the Russian courts at the location of the defendant and the fulfillment of payment obligations by him. According to the newspaper Vedomosti, Alexander Marchenkov will file a new lawsuit with the Moscow Arbitration Court, and will appeal against the decision of the Moscow City Court. Representatives of the Ministry of Finance were not present at the meeting.

The publication writes that the decision of the Moscow City Court is connected with the obligation of the Belarusian Ministry of Finance to bring payments only to the paying agent – the American Citibank, and not to the holders of securities directly. The judge also noted that the purchase of Eurobonds by Mr. Marchenkov on the Moscow Exchange is not enough for the securities to be traded on the site without coordination with Belarus. There was no listing of Belarusian bonds in Russia, but the bonds were placed on the London Stock Exchange.

At the last meeting on the case on August 28, a representative of the Belarusian Ministry of Finance stated that the dispute over the country’s Eurobonds should be transferred to the courts in Minsk or London, as required by the initial issue documentation. According to the representative of the Ministry of Finance, Belarus did not completely refuse payments. In order to receive payments, you need to open an account with Belarusbank and send documents confirming ownership of the papers to the department.

For the first time, the investor applied for debt collection in February 2023. Then the claim was rejected due to the defendant’s stay on the territory of Belarus, after which Mr. Marchenkov challenged this decision. The court accepted the claim for proceedings in May.

Alexander Marchenkov’s claims against the Ministry of Finance relate to two issues of Belarusian Eurobonds maturing in 2030 and 2031. The plaintiff requires the Belarusian government to repay $280,000 worth of bonds, as the international agency Moody’s has recognized default on the country’s public debt. In addition, Mr. Marchenkov insists on receiving coupons in the amount of $17,000 already paid on securities from the department and asks to compensate for legal costs. The total amount of his claims is about $310,000.

Polina Motyzlevskaya