China tells Ukraine to return $3 billion - Shvaika
China filed a $3 billion lawsuit against Ukraine, reported Minister of Agrarian Policy of Ukraine Igor Shvaika. The credit was given to Ukraine for procurement and supply of grain in China. On March 26, Kiev will receive the Chinese delegation for negotiating on this situation.
According to Igor Shvaika, previous leadership of the country concealed the fact of breaching the credit terms. Contrary to the agreement, Ukraine sold to China only $153 million worth of grain, forcing the latter to file a damages lawsuit against Ukraine to the London Court of International Arbitration.
After studying customs documents, reporters of Kharkov News Agency found that Ukraine’s State Food and Grain Corporation (GPZKU) bypassed agreements with China, using Chinese money to supply grain to Ethiopia (worth $28 million), Iran ($24 million), Egypt ($26 million), Switzerland ($61.9 million), Kenya ($11 million), Saudi Arabia ($7 million) and Monaco ($14 million).
The GPZKU inked the $3billion credit agreement with the China Export-Import Bank for forward and spot grain purchases and supplies to China back in 2012. The Ukrainian corporation received first $1.5 billion in early 2013. The second half of the credit was commodity-based: Ukraine pledged to purchase Chinese goods worth $1.5 billion.