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Russian government approves agreement on $132.5m debt

The Russian government has approved a supplementary agreement on settling the $132.5m debt to Bulgaria inherited from the Soviet Union, the Russian government press service reported.

According to the agreement, Bulgaria is to reduce the amount of Russia's debt by $34m within five days of the agreement taking effect. The reduction will compensate for Russia's costs of producing unspecified equipment under an agreement between Russia's Uralmash and Bulgaria's Kremikovitsi. The equipment produced up to the date of the agreement's signing remains Russia's property, the press service said, without providing further details.

Russia is to pay $15m to Bulgaria by 30-Jun-02, while Bulgaria is expected to simultaneously reduce Russia's debt by $25m. Russia will also supply unspecified "special equipment and spare parts" worth $24m to Bulgaria in the period 2002-to-2004. Russia will supply nuclear fuel to Bulgaria worth $35m in 2002 and $14.5m in 2003. The government has instructed the finance ministry to sign the supplementary agreement on behalf of the Russian Federation, the press service said.

(NewsBase 01.vii.02)

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