Russia Writes Off $170 Million Mongolian Debt
Russian President Vladimir Putin signed the ratification of an intergovernmental agreement on the 31st of January, allowing Russia to write off 97.8 % of Mongolia's debt ($170 million).
“To ratify the agreement between the Russian and Mongolian Governments regarding the settlement of the financial liabilities of Mongolia to the Russian Federation, signed in Moscow on the 14th of December 2010,” reads the text of the law, which was published on an official government website. The law was adopted by the Russian State Duma on the 22nd of January and was approved by the Council of the Russian Federation on the 27th of January.
The intergovernmental agreement was signed by the countries in 2010, following Russian-Mongolian negotiations at the level of the heads of government in Moscow. Vladimir Putin, then Russian Prime Minister, took part in the negotiations for the Russians and the Prime Minister of Mongolia, Sükhbaataryn Batbold, spoke for Mongolia.
The signed document stated that the total amount of regulated financial liabilities of Mongolia as of the 14th of December 2010 is about $174.2 million. The intergovernmental agreement allows Mongolia to not pay 97.8 % of its debt owed to Russia, totalling approximately $170 million.
After the signing of the agreement in 2010, the Russian Minister of Finance, Alexei Kudrin, stated that Russia will consider the possibility of the provision of a new $125 million loan for Mongolia.