News24

China sues Ukraine for $3bn over grain

2014-02-27 10:34

Cape Town – China has lodged a case against Ukraine at the London Court of International Arbitration in which it alleges a breach of a loans-for-grain contract.

The South China Morning Post reports that China is seeking compensation of $3bn after the State Food and Grain Corporation of Ukraine used part of the loan to instead supply crops to other countries including Syria opposition groups, Kenya, Iran, and Ethiopia.

According to the report Chinese importers has thus far only received 180 000 tons of Ukrainian grain, the equivalent of $153m.

AFP reports that Ukraine is heading for a catastrophic default prompting calls from new western-backed leaders for $35bn in aid.

Russia has since freezed a massive bailout package after the ousting of Ukraine president Viktor Yanukovych, who is considered to have been more closely aligned to the Kremlin.

Comments
  • OrbitingTeapot - 2014-02-27 11:11

    That is very interesting....Ukraine sending grain to Syrian opposition groups, amongst other places?

  • Asb Bas - 2014-02-27 11:22

    hmm ..Accept chinese aid with 'nostringsattached" at your peril.Some lessons for Africa.

  • Thulani Mdletshe - 2014-02-27 11:46

    This is just the communist world fighting cold war style against the US and EU

  • Diana Gill - 2014-02-27 12:00

    30 somewhat yrs ago Ukraine used to be a granary of the USSR and supplied grain all over the country as well as starving African states as a part of aid without asking for an outside financial support.

  • theJoPot - 2014-02-27 13:32

    You can see the clock ticking. There are very close partnerships between certain countries and when you step on one's toes the other punches you in the gut...

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