Russia has returned to Kuwait, the debt of the USSR


Russia has fully paid to Kuwait by the Soviet debt — principal debt to $1.1 billion and accrued interest of $620 million Debt was repaid on April 26, however, the Finance Ministry reported it only today. In a press release of the Ministry States that $1.1 billion of arrears were settled in cash, and the debt on accrued interest given the supply of Russian high-tech products” (which is not specified). About this payment structure agreed in 2006, after talks on restructuring Soviet debt

According to the report of the Ministry of Finance, the debt to Kuwait was founded in 1991 as the result of attraction of credits and payment of critical imports. The newspaper “Kommersant” in 1991, called the loan “unprecedented”, as “the world practice knows no examples to occupied countries took money on loan”. Kuwait at that time was occupied by Iraq, although a multinational coalition led by the US led “operation desert Storm” to liberate Kuwait. A loan of $1 billion was issued by Vnesheconombank of the USSR Finance Corporation Kuwait Foreign Trading Contracting & Investment. He was given a period of seven years and be purpose-oriented. The default of 1998 led to the delay in the repayment of the loan and the growth of debt.

In the negotiations on debt restructuring in 2006, Kuwait agreed to write off about $400 million of penalty interest. It was originally planned to pay the debt for five years, by 2011. The first payment of $350 million was to be held in 2006, then Russia was to pay annually $200 million debt, said then Deputy Finance Minister Sergei Storchak.

After 2006 Russia, in particular, supplied weapons to Kuwait. According to the Center for analysis of world arms trade (TSAMTO), in 2010 Russia supplied to Kuwait 140, BMP-3, 18 multiple launch rocket systems “Smerch”, two landing craft of the project “Murena”.

In 2015, the volume of mutual trade of Russia with Kuwait increased by 8.3% and reached $406 million, reported in April, the head of the Russian part intergovernmental Russian-Kuwaiti Commission, Alexander Galushka, Minister for development of Russian Far East). The main share of Russian exports to Kuwait accounted for copper and copper products (in particular, in 2015 Russia supplied to Kuwait copper wire $150 million, according to the FCS), cereals (in particular barley — $49 million).

On April 1, 2016 the debt of Russia for the debts of the former USSR amounted to $1.2 billion, of which $410 million to former socialist countries (the Bank of Russia). Remain outstanding Soviet debts to South Korea, Macedonia, and Bosnia and Herzegovina should be the message of the Ministry of Finance.

With the participation of Ivan Tkachev