Russia writes off nearly $425 mio in developing countries’ debts

Over the past 10-15 years, Russia has increased international development assistance, delivering more than $1 bln annually in 2016-2018, Alexander Knobel, head of the Center for International Trade Research at RANEPA, said Monday.

“Russia provides assistance to developing countries in various formats. It makes contributions along with international institutions, such as the World Bank or the UN, and the money is transferred to the recipient countries. In addition, Russia makes direct transfers to its partners,” Knobel added.

According to him, there are other types of support for Russia’s economic partners.

“Last year, Russia cancelled $425 mio of debt to developing countries. For Kyrgyzstan alone, we have written off $240 mio. Most of these debts are the legacy of the Soviet Union. Russia has cancelled even greater debts to some other counties. In 2014, Russia wrote off $30 bln of Cuba’s Soviet era debt,” the expert noted.

In addition, Russia provides developing countries with humanitarian aid.

“In 2017, our country sent humanitarian aid to countries in need worth $23.3 mio, or twice the 2016 amount,” the expert said.

On top of that, tens of millions of dollars are being channeled to support the unrecognized states of Abkhazia, South Ossetia and Transnistria, Alexander Knobel concluded.

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