MosNews
June 11, 2004

Russian President Vladimir Putin, speaking at the G8 summit on Sea Island, said that Russia will not make any unilateral decisions on writing off Iraqi debt, Itar-Tass agency reported on Friday. Putin did say however that Russia is ready to tackle the debt issue within the framework of the Paris Club of Creditors. “We are members of the Paris Club, we were ready to take some losses when we entered the club, that is why the issue [of the Iraqi debt] should be addressed with the club,” said the Russian President.

In his speech Putin did not elaborate of the amount of the debt, saying only that “it will be determined following consultations with the Iraqi government.” However at the G8 meeting of finance ministers and central bankers which took place in Florida in February, Russia’s Finance Minister Alexei Kudrin said that Iraqi debt to Russia without acquired interest stands at $8 billion. This sum makes Russia Iraq’s largest individual creditor.

Kudrin also said that Paris Club requirements state that the creditor countries should write off around 65 percent of the debt owed to them by Iraq.