Repayment of Russia's Remaining Debt to Australia

Deputy Prime Minister and Minister for Trade, Mark Vaile, has welcomed news that Australia has obtained immediate re-payment today of all debts owed to Australia by Russia.
The signing of a bilateral agreement between the Russian Government and Australia's Export Finance and Insurance Corporation - acting on behalf of the Australian Government - completed the debt repayment schedule negotiated at June's Paris Club meeting.

The agreement has ensured Russia's immediate repayment of its remaining $US185 million of debt owing to Australia in cash at face value.

"This is an excellent outcome for both Australia and Russia. Australia has received all its debt owed by Russia ten years earlier than the final scheduled repayment date of 2016, and Russia has cleared all its outstanding debts with Australia and all other creditor countries participating through the Paris Club" Mr Vaile said.

Growing foreign reserves, primarily through booming oil sales, have enabled Russia to clear its remaining US$22 billion debt to Paris Club creditors, including Australia.

The debt owed to Australia was contracted in 1991, prior to the break-up of the USSR, as a result of payment defaults for wool and wheat sales. After the break-up of the USSR, Russia accepted responsibility for former Soviet debts.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555