08:04 GMT +318 October 2018
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    Corridor of the Gold Gate subway station, Kiev

    Kiev Metro May Grind to a Halt Over Debt to Russian Company

    © AFP 2018 / SERGEI SUPINSKY
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    The Kiev metro may grind to a halt after losing part of its rolling stock due to an unpaid debt to a Russian company, Kiev’s deputy mayor Ilya Sagaidak wrote on Facebook.

    "Ukrroslizing LLC, which is owned by entities controlled by Russia’s Vnesheconombank, appealed to the Economic Court of Kiev demanding the recovery of the debt owed to it by the Kiev subway under the lease agreement, termination of the contract and return of the leased cars,” Sagaidak wrote.

    “This could effectively stop the operation of the Kiev Metro," he added.

    The Economic Court sustained the Russian company’s claim to collect the debt, terminate the contract and repossess the property. The Kiev metro is no longer allowed to use the leased cars.

    The Kiev metro received 100 cars under a 2009 deal with Ukrroslizing, but has failed to pay for their lease in full and still owes over $18 million.

    The metro’s previous management then signed an additional agreement with Ukrroslizing. As a result, the overall debt has since grown almost three times.

    The Kiev metro has appealed the court’s ruling and “our entire rolling stock is now at work,” the metro’s media spokeswoman Natalya Makogon told RIA Novosti.

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    Tags:
    court decision, debt, leasing agreement, rolling stock, Kiev Economic Court, Ukrroslizing LLC, Ilya Sagaidak, Ukraine
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