ISSN 2330-717X

Russia Writes Off 90% Of North Korea’s $11 Billion Debt

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Russia said on Tuesday, September 18 it agreed to write off 90 percent of North Korea’s $11 billion debt and would reinvest the balance in the reclusive Asian state, in a sign of closer engagement with Pyongyang under new leader Kim Jong-un, Reuters said.

By writing off most of the sum owed by North Korea, one of the world’s poorest countries, Russia granted a level of forgiveness in line with debt reduction deals it has given to its most impoverished debtors.

Moscow said the remaining $1 billion or so of the debt racked up by Pyongyang when it was a client state of the Soviet Union would go towards energy and education deals as well as development aid.

Analysts believe infrastructure deals will likely be a big part of the investments, including in railway and power lines.

Russia is also considering building a gas pipeline to energy-hungry South Korea – which Alexander Vorontsov, head of the Korean and Mongolian Studies department at a Russian Academy of Sciences institute, said Pyongyang would be bound to welcome.

The outstanding debt owed by North Korea will be managed by Russia’s state development bank, Vnesheconombank.

PanARMENIAN

PanARMENIAN

PanARMENIAN Network is the first Armenian online news and analytical agency and one of the most cited Armenian informational resources worldwide.

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