Connect with us

Latest

News

Russia pays last Soviet debt

Payment of $152 million to Bosnia clears all outstanding Soviet debt

Alexander Mercouris

Published

on

3,852 Views

This article was first published by RussiaFeed

An aspect of the events surrounding the dissolution of the USSR in 1991 which rarely gets discussed is that Russia took on itself the entire burden of paying the whole of the foreign debt owed by the USSR at the time of its collapse.

By contrast the other fourteen Soviet republics – now all of them independent states – were not required to pay any of this debt when the USSR collapsed.

The result was that from the moment it came into existence Russia found itself liable for the entire burden of the USSR’s debt – estimated to be around $70 billion – with just a few billion dollars held in the Russian Central Bank’s gold and foreign currency reserves to cover it.

By contrast the other republics of the USSR when they became independent found themselves entirely debt free.

Needless to say any comparison of the relative economic performance of Russia and of the other former Soviet republics since 1991 ought to take this fact into account.  Needless to say it never is.

In the event Russia has successfully discharged the whole of this huge Soviet debt burden it took on itself, steadily paying off all the USSR’s debt ever since Vladimir Putin became Russia’s President in 2000.

The final payment of $152 million to Bosnia has just been made, clearing the debt completely.

Following this payment the only bilateral debt Russia stills owes to another sovereign state is $594 million, which Russia itself borrowed from South Korea, and which it it due to repay in 2025.

The payment to Bosnia shows something else: Russia’s determination to discharge all its financial obligations even when it has an excuse not to do so.

At the time the USSR incurred the debt of $152 million which has just been paid to Bosnia, Bosnia as an independent country did not exist.  The USSR did not in fact owe this money to Bosnia but to the Socialist Federation of Yugoslavia, of which Bosnia was a constituent republic.  Yugoslavia however no longer exists, just as the USSR itself no longer exists.

Another country in Russia’s position might have chosen to treat Yugoslavia’s disappearance as a reason for claiming that the debt which was owed by the USSR to Yugoslavia had also been wiped out.

Instead the Russians chose to negotiate repayment of the debt the USSR owed to Yugoslavia by agreeing to subdivide Russia’s liability for the debt proportionately between the various Yugoslav republics and to make payments of the debt to them proportionately on that basis.

The two final payments were a payment of $60 million to Macedonia made in February, and the payment of $152 million which has just been made – on 8th August 2017 – to Bosnia.

The collapse in oil prices in 2014 and the sanctions imposed on Russia that year were supposed to precipitate a payments’ crisis in Russia, with claims often made at the time that the country would be pushed into crisis and default.

Instead Russia has effortlessly paid off all its Soviet era debt, has Central Bank foreign currency reserves that now amount to $420 billion, is currently running a surplus on its consolidated budget, and has a public debt to GDP ratio of less than 15%, the lowest of any G20 state.

Moreover it seems that most of the foreign debt owed by Russia’s companies to Western banks will also be paid off by the end of this year.

Liked it? Take a second to support The Duran on Patreon!
Advertisement
Click to comment

Leave a Reply

avatar
  Subscribe  
Notify of
ruca
Guest
ruca

What would Ukraine or US have done?

Terry Ross
Guest
Terry Ross

The same as any mendacious scoundrel would have done…

Suzanne Giraud
Guest
Suzanne Giraud

You mean like israel, 😉

Seán Murphy
Guest
Seán Murphy

Defaulted, or, in the case of the USA, just refuse to pay. “After all, we are the exceptional nation, your rules don’t apply to us”.

AM Hants
Member
AM Hants

Nice quote, which made me laugh. So true.

AM Hants
Member
AM Hants

That is seriously interesting. Funny, how the Soviet Union nations, that emerged in 1991, the ones that embraced their independence, work happily with Russia. The ones that ran with their begging bowls, boulders on their shoulders, blaming Russian for everything, ran to the EU, which was run on the same ideology as the EU. Ukraine, who got paid $millions for giving up the ICBMs, that actually belonged to the Sovietr Union and not the nation of Ukraine, are still whinging, whining , moaning and playing the Professional Victimes, worthy of an Oscar, when they actually meant something. Russia paid the… Read more »

FlorianGeyer
Guest
FlorianGeyer

All of which apply to the UK today and the US for decades.

Alex Popoff
Guest
Alex Popoff

It is 10th or 12th time when Russia pays the very absolutely ultimate last soviet debt, as long as I remember.

FlorianGeyer
Guest
FlorianGeyer

I am sure the Khazar Jews of Russia now residing in Israel and living in Palestinian houses etc will soon claim compensation for the distress they had when the Jew dominated NKVD and Cheka were ‘forced’ to murder tens of millions of Russian Christians. The Holodomor being just one example.

An NKVD ‘kill room’ is an exhibit in Riga,Latvia. Jews are still not very popular there .

Peter Hallam
Guest
Peter Hallam

Every Western country, for some reason all of them, is awash in debt and can’t pay it off. Why is that? Why can Russia; with what some would have called at the time, insurmountable problems; be able to pay off all its debts, even those it could legally have discharged of itself because it wasn’t legally liable; whist the West is facing bankruptcy? What is going on? Actually, we all know what is going on, I just had to posit it. It is a debt trap; put in place on the citizens of those trapped countries by their Rothschild rulers… Read more »

John Burns
Guest

Eminently sensible advice. There will be much wringing of hands and beating of breasts when the World Economy collapses.

Mark
Guest
Mark

Not to mention the usual western deflection when one of its charter members reaches pitchover: “Nobody could have foreseen this. And this is no time for pointing fingers. We all have to work together to solve the problem”. It is worth mentioning, however, that the west will not quietly go under owing to being overcome by debt. It will either invent an excuse to wipe out its debts and start afresh, or – more likely – invent an excuse for a major war in the hope that acquiring fresh conquests will allow it to continue the exploitative policies which initially… Read more »

FlorianGeyer
Guest
FlorianGeyer

Indeed, Debt is Slavery. Even those of us who have no debt are forced to pay for Government Debt that is far larger than it need be due to all the useless and wasteful wars our corrupt leaders rush to take part in with the US.

The British military operations in Afghanistan this century cost the taxpayer circa 34 billion pounds and we achieved bugger all except over 400 dead soldiers and thousands wounded and crippled.

John R. Nolan
Guest
John R. Nolan

Wouldn’t it be good to live in a country that is economically free from the usurpers, the scum bags who have, since the creation of credit, kept the West in darkness?
The only way we are to be free is to nationalize the entire banking system, put control of creation of credit back in the hands of the citizens, and, instantly, we are all out of debt!

desertspeaks
Guest
desertspeaks

hmm no Rothchilds running Russian banking anymore and viola! Russia is nearly debt free.. well, aside from $594 million, which Russia itself borrowed from South Korea, and which it it due to repay in 2025. Further, Russia could actually become debt free, if they so chose to.. And they should, imho. Russia’s Central Bank foreign currency reserves that now amount to $420 billion, the Russians wouldn’t even miss the $594 million!
NO ROTHCHILDS BANKERS = Russia’s debt almost paid off.. ANYONE SEE THE CONNECTION YET??

CumExApostolatus
Guest
CumExApostolatus

Russia is in real trouble now.

Gordon
Guest
Gordon

International Bankster S..m, and their drunken in debt puppet:- Churchill.
UK, WW1:- The national debt increased from £650m in 1914 to £7.4 billion in 1919.
By the end of World War II Britain had amassed a debt of £21 billion, which we only paid back in 2006, very few people were aware of this financial debt.
The debt to white European Christians and their countries, due to the loss of all of those men is coming home to roost at present.
War is Murder.

Latest

“Transphobic” Swedish Professor May Lose Job After Noting Biological Differences Between Sexes

A university professor in Sweden is under investigation after he said that there are fundamental differences between men and women which are “biologically founded”

Published

on

Via Zerohedge


A university professor in Sweden is under investigation for “anti-feminism” and “transphobia” after he said that there are fundamental differences between men and women which are “biologically founded” and that genders cannot be regarded as “social constructs alone,” reports Academic Rights Watch.

For his transgression, Germund Hesslow – a professor of neuroscience at Lund University – who holds dual PhDs in philosophy and neurophysiology, may lose his job – telling RT that a “full investigation” has been ordered, and that there “have been discussions about trying to stop the lecture or get rid of me, or have someone else give the lecture or not give the lecture at all.”

“If you answer such a question you are under severe time pressure, you have to be extremely brief — and I used wording which I think was completely innocuous, and that apparently the student didn’t,” Hesslow said.

Hesslow was ordered to attend a meeting by Christer Larsson, chairman of the program board for medical education, after a female student complained that Hesslow had a “personal anti-feminist agenda.” He was asked to distance himself from two specific comments; that gay women have a “male sexual orientation” and that the sexual orientation of transsexuals is “a matter of definition.”

The student’s complaint reads in part (translated):

I have also heard from senior lecturers that Germund Hesslow at the last lecture expressed himself transfobically. In response to a question of transexuallism, he said something like “sex change is a fly”. Secondly, it is outrageous because there may be students during the lecture who are themselves exposed to transfobin, but also because it may affect how later students in their professional lives meet transgender people. Transpersonals already have a high level of overrepresentation in suicide statistics and there are already major shortcomings in the treatment of transgender in care, should not it be countered? How does this kind of statement coincide with the university’s equal treatment plan? What has this statement given for consequences? What has been done for this to not be repeated? –Academic Rights Watch

After being admonished, Hesslow refused to distance himself from his comments, saying that he had “done enough” already and didn’t have to explain and defend his choice of words.

At some point, one must ask for a sense of proportion among those involved. If it were to become acceptable for students to record lectures in order to find compromising formulations and then involve faculty staff with meetings and long letters, we should let go of the medical education altogether,” Hesslow said in a written reply to Larsson.

He also rejected the accusation that he had a political agenda – stating that his only agenda was to let scientific factnot new social conventions, dictate how he teaches his courses.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Despite Pledge Not to, Germany Approves Sale of Arms to Saudi Arabia

Germany is the latest to renege on promises to ban weapons sales for use in the Yemen War.

The Duran

Published

on

Authored by Jason Ditz via AntiWar.com:


With Saudi Arabia forever escalating their war in Yemen, the growing calls by human rights groups to stop selling them arms with which to commit war crimes are struggling to compete with the vast sums of money the Saudis are offering for those arms.

Germany is the latest to renege on promises to ban weapons sales for use in the Yemen War, announcing Wednesday that the Economy Minister has greenlit a new round of artillery systems for sale to the Saudis.

The systems are designed for precise counterattack, and are clearly being bought explicitly to use in Yemen. Yet the Merkel government, as part of its coalition deal, announced a full export ban to “any sides fighting in Yemen,” including the Saudis.

While this was at the time supposed to be a condition of the Social Democrats joining the government. So far, Merkel has not explained why the sale was approved over the putative ban, and the Social Democrats have not complained either.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

FBI Had “Two Sets Of Records” On Trump Investigation; Comey, McCabe Implicated: Carter

Sara Carter: FBI/DOJ had ‘two sets of books’ in the Russia investigation.

Published

on

Via Zerohedge


Journalist Sara Carter told Sean Hannity during his Wednesday radio show that the FBI has two sets of records in the Russia investigation, and that “certain people above Peter Strzok and above Lisa Page” were aware of it – implicating former FBI Director James Comey and his #2, Andrew McCabe.

Hannity: Sara, I’m hearing it gets worse than this–that there is potentially out there–if you will, two sets of record among the upper echelon of the FBI–one that was real one that was made for appearances. Is there any truth to this?

CarterAbsolutely, Sean. With the number of sources that I have been speaking with as well as some others that there is evidence indicating that the FBI had separate sets of books.

I will not name names until all of the evidence is out there, but there were certain people above Peter Strzok and above Lisa Page that were aware of this. I also believe that there are people within the FBI that have actually turned on their former employers and are possibly even testifying and reporting what happened inside the FBI to both the Inspector General and possibly even a Grand Jury.

Listen:

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

JOIN OUR YOUTUBE CHANNEL

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Validating payment information...
Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement

Advertisement

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!
Advertisement
Advertisement

Advertisement

The Duran Newsletter

Trending