Russia writes off most of Uzbekistan’s debt

By bne IntelliNews March 28, 2016

Russia’s State Duma ratified an agreement signed between Russia and Uzbekistan in 2014, writing off most of Uzbekistan’s debt, which amounted to $889.3mn, lowering it to $25mn on March 25, news website Gazeta.uz reported on the same day, citing the State Duma. The ratification of the document is confirmed on the State Duma’s website. In exchange for writing off the debt, Uzbekistan agreed to waive its claim for its share in the USSR’s Diamond Fund.

Russia’s decision to write off the debt is seen as an attempt to improve its relations with Uzbekistan. Other examples of Russia’s possible intentions to improve relations include Russia’s recent agreement with Uzbekistan to import 4bn cubic metres of Uzbek gas in 2015 to replace gas supplies from Turkmenistan. Central Asia's most populous nation has been reluctant to get involved in Moscow-sponsored regional integration projects such as the Customs Union which became the Eurasian Economic Union in 2015.

Uzbekistan's $889.3mn debt comes from loans granted to the country by Russia in 1992 and 1993, according to the report by Gazeta.uz.

Related Articles

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Dismiss