Russia delays Belarus’ $800M debt payments amid financial strains
Self-proclaimed Belarusian President Alexander Lukashenko (Photo: Serhiy Ilnytskyi/Pool via REUTERS)
The Russian State Duma has ratified two Belarus-Russia agreements delaying Belarus' repayment of Russian state loans, the Belarusian state news agency BelTA reported on March 4.
The agreements postpone principal debt payments from April 1, 2024, to Dec. 31, 2024, while interest payments originally due from July 1 to Dec. 31, 2024, will now be deferred to the period between 2031 and 2036. The total amount of postponed payments is approximately $800 million.
According to The Moscow Times, citing World Bank data, Belarus is the largest debtor to Russia, owing $8.2 billion in intergovernmental loans issued by the Kremlin. This accounts for more than a quarter of the total foreign debt owed to Russia, which the World Bank estimated at $28.9 billion.
Other major debtors to Russia include Bangladesh ($5.9 billion), India ($3.8 billion), Egypt ($1.8 billion), and Vietnam ($1.4 billion).
In 2024, Russia's budget lost 50 billion rubles ($560 million) in expected payments on intergovernmental loans due to debt cancellations and deferments, according to Russia’s Accounts Chamber. In 2023, the Kremlin forgave debts owed by two African nations, Somalia and the Republic of the Congo.
Overall, Russia has written off $20 billion in African nations' debts, Russian dictator Vladimir Putin said in May 2023. Angola had $3.5 billion forgiven for Soviet-era arms purchases, Ethiopia $5 billion, Algeria $5.7 billion, and Libya $4.5 billion.
Earlier reports indicated that Belarusian dictator Alexander Lukashenko had ordered a search for rare earth metal deposits in Belarus.
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