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

[MCH]

[Teetop]

Shouldn't any debt incurred that went against the UNSC resolutions be null & void?

[tessalu]

I have a word for Putin. Go and find Saddam and you can have everything that you can get from him. Saddam did not declare bankruptcy, and we did not agree to pay his debts, so good luck. When you finish with him, turn him over to us. We have some unfinished business with him, too.

[lawdude]

"Won't David Gergen have to take back all his fawning ..."

Has Gergen been right about anything lately? He and the "Hack" share a proclivity for missing the mark repeatedly in the last year or so.

Even Dick Morris has a better track record lately.

[Enterprise]

I think the Russians are more deserving of the 3 dollar Clinton.

[WarSlut]

The price for France, Russia, North Korea, China, et al doing business with Saddam Hussein has been paid... in American and British blood. Considering much of this debt was obtained through giving weapons to murders and terrorists (on credit, no less), they might want to write-off their lousy investments as quickly and quietly as possible... before we think this thing through and decide to kick all of their asses.

[risk]

To force the innocent Iraqi people to repay this debt would be to reward Soviet and Russian Federation hardliner geopolitical mistakes, some of which could have led to biological or nuclear war.

I can't see Americans demanding repayment. Those who aided and abetted Saddam Hussein and his goons made a big mistake with their money. Their bets lost.

[FreedomPoster]

Let's threaten collection on some WWII Lend-Lease debts.

[elfman2]

Do you know if we required Russia to pay Soviet Debt? If so, how much and how aggressively was collection undertaken.

[elfman2]

Oops, Never mind. It's in the story.

[snopercod]

Hell yes the UN wants to keep the sanctions in place.

I'm sure you're aware that all smuggled oil that was intercepted was sold, with the proceeds going to the UN. It was a (black) gold mine for them.

[jimkress]

How are they going to enforce it? Invade Iraq?

This is just bluster.

[RusIvan]

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

Accually let western nations drop USSR debts which was put on Russia. Those debts was created the same kind of tyrants like Saddam.

[RusIvan]

How are they going to enforce it? Invade Iraq? +++

They may stop repay Soviet debts if Iraq will not repay thiers.
Russia will benefit from it.

[JudgemAll]

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

Simply because the Russian leadership was never tried and is still in power, and because Iraq is bankrupt and does not have to pay.

[RusIvan]

I think-not 100% sure-that if the Russians had been able to repudiate the debts of the USSR, they would have also lost other things awarded to that country and not Russia : A UN SC seat, a seat at the G-8 (not suure of the exact timeline there) , various pacts and treaties signed with other nations , etc. That's my best guess as to why the Russians didn't repudiate the USSR's debt : The losses would have outweighed the gains. ++++

You think UN wouldn't give Russia the SC seat? Despite of Russia's nuclier arsenal? I remember that permanent seats are for nuclier states.
Bytheway the G8 seat hwat it good for?
If USSR debts are dropped Russia will benefit. What she needs now is the precendent.

[RusIvan]

Simply because the Russian leadership was never tried and is still in power, ++++

USSR debts was done by Soviet leadership not Russian leadership.

[marajade]

Well if they can't drop UN sanctions without inspections then how is Russia going get its money?

[demosthenes the elder]

I'm all for dropping debts to the USA that the USSR ran up... but, somehow, I am doubtful we loaned our cold-war enemies all that much. I could be wrong, so feel free to enlighten me if you know better.
On the other hand, we have loaned a buttload of relief money to RUSSIA...

[RusIvan]

but, somehow, I am doubtful we loaned our cold-war enemies all that much. +++

There was something. Like 17-20 blns.
So Russia will benefit if those debts will be dropped and gladly will drop Iraq debt too.