Algorithm for optimizing foreign entities' debts to the Russian Federation

A way to get investment profit

WHO IS INTERESTED?

Debtors of the russian federation

  • Foreign companies
  • Private individuals
  • Foreign issuers of securities, bonds, bonds
  • Foreign states
  • Debtors of Russian state-owned banks
  • and their affiliated financial institutions
Nature of the liability

External liabilities

  • For energy and minerals,
  • weapons, agricultural products, other goods
  • and other goods and services
  • Under contracts for the construction of infrastructure facilities (ports, nuclear power plants, hubs, pipelines, industrial enterprises, transportation, etc.)
  • Financial liabilities (loans, financial assistance, etc.)
  • Securities, bonds, bonds, etc.

We are confident that our offer may also be of interest to investment funds and financial intermediaries

Major russian entities whose financial claims may be settled by us

  • Federal and regional ministries, departments, and other government agencies that represent the Russian Federation under Russian law
  • Institutions that perform functions and tasks inherent in government agencies
  • State-owned companies and financial institutions to which foreign public or private entities are indebted (Gazprom, Roscosmos, Rostec, Rosatom, Rosvooruzhenie, Sberbank of Russia, VTB, VEB.RF and other state-owned banks, etc.)
  • State-owned companies and financial institutions that are under the decisive control of the russian federation

SCHEMATIC DIAGRAM

The right of claim, duly recorded by a court decision, becomes the subject of an assignment agreement, i.e. the transfer of the right of claim with the possibility of further offsetting mutual homogeneous claims

DETAILING THE MECHANISM OF COOPERATION

  1. Ukrainian participant assigns its right of claim to Russia to H2 Atom Limited (London)
  2. H2 Atom Limited (London) transfers the received right to the interested non-resident at a corresponding discount
  3. The non-resident applies the received right of claim against Russia in the procedure of offsetting mutual counterclaims with an eligible Russian entity.
  4. The non-resident pays for the acquired right of claim on pre-agreed terms
  5. H2 Atom Limited (London) directs the proceeds to a charitable program to compensate vulnerable citizens for damage caused by Russian aggression1
    and payment of the primary right of claim (5, 6, 7)

1 The charity program is aimed at buying back the claims of Ukrainian citizens against the Russian Federation (secondary claims) for 100% of their value, providing them with free legal aid, and directing the funds received from the sale of the secondary claims obtained in this way to the same purpose.

We offer the following as grounds for a counterclaim

Utilize Russia's debt to Ukrainian companies and individuals,

which arises as compensation for property lost as a result of the armed aggression of the Russian Federation, according to the relevant decisions of Ukrainian courts, through the acquisition of the right to claim such debt from them at a discount by entering into a relevant assignment agreement.

The existing legal framework and judicial practice allow us to use our algorithm and facilitate the launch of legal proceedings to recover compensation from the occupying state.

  • The fact of aggression on the part of the Russian Federation has been recognized both nationally and internationally and is not subject to proof.
  • The Supreme Court of Ukraine has established a practice of considering claims for damages.
  • The competent authorities have developed and implemented methods and procedures for calculating material losses (direct, indirect, lost income, reduced business value, etc.).
  • There are judicial precedents of international courts regarding the "blocking" and confiscation of Russian assets.
  • Dozens of governments of Ukraine's partner countries have joined the sanctions pressure on Russia by imposing sanctions on large Russian companies that finance the war.

POTENTIAL RISKS

In any scenario, the list of circumstances that the Russian side can refer to is quite limited, and each potential argument has reasonable counterarguments that make it impossible for Russia to succeed.

Arguments of the russian federationOur counterarguments
The existence of judicial immunity in the russian federation.An aggressor state that has violated the sovereignty of another country and committed a military attack does not have the immunity guaranteed to it in court, which corresponds to parts 1 and 3 of Article 42 of the Convention on Legal Assistance in Matters of Damage of 22.01.1993.
Details
Inconsistency between the debtor under the court decision (the state of the rf) and the debtor in the course of the recovery (state authorities of the rf).According to the practice of international investment arbitration (the Center for the Settlement of Investment Disputes (ICSID) tribunal), the state and state bodies are identical concepts, since state-owned companies and financial institutions are under the decisive control of the state to the extent that they are its "alter ego" and their property is managed by the state as its own.
Details
Heterogeneity of counterclaims due to the difference between the currency of recovery under the court decision and the currency in the agreement (contract) with the rf, in which the set-off will take place.Homogeneity implies a single legal nature of the subject matter of transactions between the parties, and accordingly, monetary liabilities, regardless of currency, are inherently homogeneous. There is a well-established case law in the courts of the United Kingdom.
Details
Disagreement with the decision of the Ukrainian court on the merits.The absence of judicial immunity of the russian federation, recognized in clause 1 of this list, inevitably leaves the only way for the aggressor state to appeal and/or cassation in Ukraine.
Arguments regarding the violation of the process of consideration and decision-making by the Ukrainian court.The trial in the Russian Federation was conducted in compliance with all international norms and standards of justice: ensuring the defendant's access to justice and the right to defense;
Procedural deadlines and reasonable timeframes for decision-making were met;
Procedural documents were sent to the defendant in advance with a translation into Russian, and an interpreter was provided to attend court hearings, thus ensuring the right to understand the essence of the trial;
Timely sending of the judgment to the defendant, which ensured the right to appeal the judgment, etc.
Details
Futility of appealing a court decision.Establishing the fact of damage caused by the military aggression of the Russian Federation at the highest international level and proving the causal relationship between this with proper evidence in compliance with all norms and standards in the competitive process reduces to zero the aggressor's prospects for reversal or even minor changes in the court decision.

ATTENTION!

H2Ukraine Group offers to buy back assets destroyed or damaged as a result of Russia's military aggression against Ukraine.

It could be:

  • Property rights to commercial real estate;
  • Property rights to land plots and residential and commercial real estate located in the occupied territories;
  • Corporate rights in business entities that suffered from military operations on the territory of Ukraine, in particular, lost property, profits, etc.

Consider other options for cooperation!