Russia pays off its Soviet era debts to the west

Ashley Seager Tuesday August 22, 2006 The Guardian

"Russia yesterday confirmed it had finished paying off all its debts to western nations dating from the Soviet era, thanks to surging oil prices.Moscow said it had repaid a final chunk of $22.5bn (£11.8bn) and $1.3 bn in servicing costs. The payments were made to 17 creditor countries, known as the Paris Club, over the past week. It has repaid a total of $40bn over the past year.

The repayments took place over the eighth anniversary of the country's huge debt default and rouble crisis back in 1998. The Russian finance ministry said the debt repayment would save the country over $12bn in debt costs until 2020."