Russia ministers says Moscow won't drop Iraq debt

Reuters | 4/12/03

[kattracks]

Russia ministers says Moscow won't drop Iraq debt

MOSCOW, April 12 (Reuters) - Russia will not forgive Iraq some $8 billion in Soviet-era debt, Finance Minister Alexei Kudrin said on Saturday, a day after President Vladimir Putin said Moscow could consider wiping clean Baghdad's slate.

Speaking from Washington where he is taking part in a meeting of finance ministers from the Group of Eight leading industrialised nations, Kudrin said Moscow would not forgive loans granted to Iraq under Saddam Hussein until Russia's own Soviet debts were written off.

"No one has forgiven Russia's debt, regardless of what kind of regime it was and regardless of the country's clout," he told Russian state television.

"For this reason, international law and our membership of the Paris Club of creditor nations will allow us to press for the repayment of our loans."

Russia inherited some $100 billion in Soviet-era debt. It faces a debt repayment peak of $17 billion in 2003.

"We are acting on the basis of the same rules here: we are doing what is being done to us," Kudrin said.

Putin, speaking in St Petersburg at a joint press conference alongside his French and German counterparts, said on Friday Russia had no objection to a U.S. proposal that some or all of Iraq's debts be written off to help rebuild the country.

"On the whole the proposal is understandable and legitimate. In any event, Russia has no objection to such a proposal," Putin told reporters.

Most estimates put Iraqi debts to Russia and France at about $8 billion each, mostly for contracts concluded in the 1980s, but some analysts say Moscow could be owed up to $12 billion.

Germany's Finance Ministry said on Friday Iraq owed Berlin a sum just short of four billion euros ($4.3 billion).

Germany and France, members of the Paris Club alongside Russia, have given a cool response to the proposal tabled by U.S. Deputy Defense Secretary Paul Wolfowtiz, saying it is to early to discuss debt.

The Paris Club is an informal forum for 19 creditor nations to discuss rescheduling debts to developing countries.

Iraq is thought to face some $142 billion in enforceable debt claims as well as up to $300 billion in reparations outstanding from the invasion of Kuwait.

04/12/03 14:23 ET

[kattracks]

But...but.. how can this be? Russia and the rest of the Axis of Weasels are sooooo concerned for the Iraqi people.

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[CROSSHIGHWAYMAN]

RUSSIA WILL NEVER SEE A CENT!

Hey pootie-poot, go get paid from Saddam. He's the one who ran up the tab!!

har har

[Prince Charles]

Message to Russia: no more contracts for you.

[WOSG]

hypocrite ... how much did IMF give to Russia in 1998? $8 billion??

[Scothia]

Won't David Gergen have to take back all his fawning on FNC yesterday about how the kindly, compassionate Russians were going to to give an example to other nations about how to treat their debtors. </gag>

[Carry_Okie]

Russia ministers says Moscow won't drop Iraq debt

Oh, so they're VOLUNTEERING TO HOLD THE BAG!!!

How nice of them.

Iraq can either repudiate the debt as composed of illegal contracts or just ignore it altogether.

[Cultural Jihad]

The French, German, and Russian imperialists were more than willing to help Saddam loot the Iraqi treasury while the Iraqi people went hungry and tortured.

End the imperialism of the these weasels!

[tomahawk]

Gergen makes me sick.

[Grampa Dave]

Yo, Russian KGBers and Mafia thugs, you had best collect your billions from the thugs and families of the Soddomite top 55.

Because you ain't getting any money from the New Free Republic of Iraq.

Maybe your extortionists can collect from the Frogs, the Krauts and the Belgium scumbags.

[JoeSchem]

"We are acting on the basis of the same rules here: we are doing what is being done to us," Kudrin said.

I've always felt that the Russian Republic has a right to repudiate the debt incurred by the Soviet Union. The tyrants who borrowed the money are gone, and the capitalists who sold them the rope with which to hang the West deserve to be hanged themselves, not just stiffed.

[maestro]

The Paris Club is an informal forum for 19 creditor nations to discuss rescheduling debts to developing countries.

Does Mr. Paris have a last name?

[Illbay]

I get what you're saying, but I have to admit Kudrin has a point. "No one excused us from the SOVIET debt, why are we supposed to forgive the IRAQI's debt?"

This whole "world debt" thing is going to blow up one of these days. People here think war's all about religion and ideology. It's ALWAYS about money.

[wtc911]

Russia needs oil at $23.5/bbl to meet their projected budget. This gives them a solid surplus. If the price falls below $17.5/bbl they run a deficit. The best case scenario for Russia would have been a protracted Iraq war with severe, long term damage to the oil fields. The increased Russian oil exports and rise in $$/bbl would have exponentially offset what Russia would have lost in unpaid Iraqi debt.(did Putin gamble on this?)

The worste case scenario for Russia is what happened, a quick war with the liklihood of a quicker return to full Iraqi oil production. There is conjecture that Putin's objection to the war was based on the gamble. It didn't pay off, now he wants to collect the lesser amount.

[struwwelpeter]

Just as soon as Russia redeems all those Tsarist debts.

[George W. Bush]

Nice propaganda ploy by our State department. The new Iraqis won't be too likely to awarding contracts to the Weasels. And may not feel like honoring Saddam's debts.

Oh yeah, Russia has not repaid all its debts. The old Tsarist bonds were never honored. So a lot of their debt has been forgiven already.

It's in the interests of America and Britain and Israel to develop the oil and sell the weaponry the new Iraq will need. And Europe can come begging for oil if it wants. Otherwise, Iraq can sell it in Asia quite easily.

The frogs and krauts and russkies are going to regret what they've done recently for many years to come.

[Enterprise]

Well, I'm willing to be generous here. There is a lot of money with Saddam's picture on it laying around the streets. Simply gather up all of that money and give it to Russia!

[kattracks]

"No one excused us from the SOVIET debt, why are we supposed to forgive the IRAQI's debt?"

Fine, then they should shut their pie holes about being so concerned about what's going to happen to Iraq.

The Russians and the others have had nothing but criticism for the US. The looting, the starving people, etc., etc. Now we can see just how deep their "concern" goes.

[ScholarWarrior]

The debt was probably denominated in a worthwhile currency, like the ruble. Snicker.

[maestro]

Your#13)........Correct!

This whole "world debt" thing is going to blow up one of these days. People here think war's all about religion and ideology. It's ALWAYS about money.

Exactly,........It's ALWAYS about which ideology/religion/sociology GETS THE MONEY!

/sarcasm

The 'Devil' is an 'evil' banker!