The state Duma ratified the agreement on the write-off 97% of the debt of Mongolia to the Russian Federation

Moscow. January 22. The state Duma at plenary session passed the third reading of the bill on ratification of the agreement on the settlement of financial obligations of Mongolia to the Russian Federation.

In the explanatory note to the bill States that as of December 2010 the total outstanding financial obligations of Mongolia to the Russian Federation amounted to $174.2 million, the Entire amount specified in the debt is overdue.

Debt of Mongolia originated in the period before the mid-1900s, and include amounts due on loans to the former Soviet Union to pay part of the contributions of the Mongolian party in the Charter Fund of JV “Mongolsovtsvetmet” about $ 163,7 million transferable rubles and balances in favor of the Russian side on the clearing accounts opened by Vnesheconombank with the state Bank of Mongolia, in the amount of clearing clearing 10.5 million US dollars.

From the document follows that the unsettled financial obligations of Mongolia to Russia has hampered the development of bilateral investment cooperation, in particular, for the implementation of Russian companies in major projects in transport and mining industries in Mongolia.

“As a result, in July 2010, the bilateral negotiations failed to reach agreement on repayment of the Mongolian side of financial liabilities in the amount of 163,7 million transferable rubles and for clearing 10.5 million dollars as a lump sum payment in the amount of $3.8 million”, – stated in the document.

It explains what it is about the receipt from the debtor of funds in a freely convertible currency in the repayment of the debt, expressed in conditional units, used for credit and trading operations of the former USSR and in the last 20 years actually withdrawn from economic turnover between Russia and Mongolia.

Speaking at the plenary session of the state Duma, Deputy Finance Minister Sergei Storchak explained that write-off is subject to almost 97% of the debt of Mongolia.

“It is worth considering that it comes to debt denominated in a non-existent currency. In fact, the debtor always has the opportunity to put the question in such a way that there is no exchange – no obligation. In this case, we agreed to terms in an existing currency”, – said Storchak.

The agreement between the government of the Russian Federation and the government of Mongolia on the settlement of debt was signed in December 2010, however, in the summer of 2011 working on its ratification was suspended. In accordance with the instructions of President Vladimir Putin, in may 2015, the ratification process was resumed.