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

4,492 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

US continues to try to corner Russia with silence on Nukes

Moscow continues to be patient in what appears to be an ever more lopsided, intentional stonewalling situation provoked by the Americans.

Seraphim Hanisch

Published

on

TASS reported on March 17th that despite Russian readiness to discuss the present problem of strategic weapons deployments and disarmament with its counterparts in the United States, the Americans have not offered Russia any proposals to conduct such talks.

The Kremlin has not yet received any particular proposals on the talks over issues of strategic stability and disarmament from Washington, Russian Presidential Spokesman Dmitry Peskov told TASS on Sunday when commenting on the statement made by US National Security Adviser John Bolton who did not rule out that such talks could be held with Russia and China.

“No intelligible proposals has been received [from the US] so far,” Peskov said.

Earlier Bolton said in an interview with radio host John Catsimatidis aired on Sunday that he considers it reasonable to include China in the negotiation on those issues with Russia as well.

“China is building up its nuclear capacity now. It’s one of the reasons why we’re looking at strengthening our national missile defense system here in the United States. And it’s one reason why, if we’re going to have another arms control negotiation, for example, with the Russians, it may make sense to include China in that discussion as well,” he said.

Mr. Bolton’s sense about this particular aspect of any arms discussions is correct, as China was not formerly a player in geopolitical affairs the way it is now. The now all-but-scrapped Intermediate Range Nuclear Forces Treaty, or INF, was a treaty concluded by the US and the USSR leaders Ronald Reagan and Mikhail Gorbachev, back in 1987. However, for in succeeding decades, most notably since the fall of the Soviet Union, the US has been gradually building up weaponry in what appears to be an attempt to create a ring around the Russian Federation, a situation which is understandably increasingly untenable to the Russian government.

Both sides have accused one another of violating this treaty, and the mutual violations and recriminations on top of a host of other (largely fabricated) allegations against the Russian government’s activities led US President Donald Trump to announce his nation’s withdrawal from the treaty, formally suspending it on 1 February. Russian President Vladimir Putin followed suit by suspending it the very next day.

The INF eliminated all of both nations’ land based ballistic and cruise missiles that had a range between 500 and 1000 kilometers (310-620 miles) and also those that had ranges between 1000 and 5500 km (620-3420 miles) and their launchers.

This meant that basically all the missiles on both sides were withdrawn from Europe’s eastern regions – in fact, much, if not most, of Europe was missile-free as the result of this treaty. That is no longer the case today, and both nations’ accusations have provoked re-development of much more advanced systems than ever before, especially true considering the Russian progress into hypersonic and nuclear powered weapons that offer unlimited range.

This situation generates great concern in Europe, such that the UN Secretary General Antonio Guterres called on both Moscow and Washington to salvage the INF and extend the Treaty on Measures for the Further Reduction and Limitation of Strategic Offensive Arms, or the New START as it is known.

“I call on the parties to the INF Treaty to use the time remaining to engage in sincere dialogue on the various issues that have been raised. It is very important that this treaty is preserved,” Guterres said at a session of the Conference on Disarmament in Geneva on Monday.

He stressed that the demise of that accord would make the world more insecure and unstable, which “will be keenly felt in Europe.” “We simply cannot afford to return to the unrestrained nuclear competition of the darkest days of the Cold War,” he said.

Guterres also urged the US and Russia to extend the START Treaty, which expires in 2021, and explore the possibility of further reducing their nuclear arsenals. “I also call on the United States and the Russian Federation to extend the so-called New START Treaty before it expires in 2021,” he said.

The UN chief recalled that the treaty “is the only international legal instrument limiting the size of the world’s two largest nuclear arsenals” and that its inspection provisions “represent important confidence-building measures that benefit the entire world.”

Guterres recalled that the bilateral arms control process between Russia and the US “has been one of the hallmarks of international security for fifty years.”

“Thanks to their efforts, global stockpiles of nuclear weapons are now less than one-sixth of what they were in 1985,” the UN secretary-general pointed out.

The Treaty between the United States of America and the Russian Federation on Measures for the Further Reduction and Limitation of Strategic Offensive Arms (the New START Treaty) entered into force on February 5, 2011. The document stipulates that seven years after its entry into effect each party should have no more than a total of 700 deployed intercontinental ballistic missiles (ICBM), submarine-launched ballistic missiles (SLBM) and strategic bombers, as well as no more than 1,550 warheads on deployed ICBMs, deployed SLBMs and strategic bombers, and a total of 800 deployed and non-deployed ICBM launchers, SLBM launchers and strategic bombers. The new START Treaty obliges the parties to exchange information on the number of warheads and carriers twice a year.

The new START Treaty will remain in force during 10 years until 2021, unless superseded by a subsequent agreement. It may be extended for a period of no more than five years (that is, until 2026) upon the parties’ mutual consent. Moscow has repeatedly called on Washington not to delay the issue of extending the Treaty.

 

 

 

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

Latest

Trump witch hunt dots connected: CNN to Steele to John McCain (Video)

The Duran Quick Take: Episode 110.

Alex Christoforou

Published

on

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss documents released which show that Christopher Steele admitted to using posts by ‘random individuals’ on the CNN community website ‘iReport’ in order to back up his fabricated Trump dossier.

President Trump took note of Steele’s use of CNN citizen journalist posts, in a twitter tirade that blasted the British ex-spy for running with unverified community generated content from a now now-defunct ‘iReports’ website as part of his research.

Trump the proceeded to rip into late neocon Arizona Senator John McCain, tweeting that it was “just proven in court papers” that “last in his class” McCain sent the Steele’s dossier to media outlets in the hopes that they would print it prior to the 2016 US election.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

Via The Daily Caller

A federal court unsealed 43 pages Thursday of a deposition that former British spy Christopher Steele gave as part of a lawsuit over his infamous anti-Trump dossier.

To the disappointment of many observers, the full deposition was not unsealed in Thursday’s motion. Instead, portions of Steele’s interview, which he gave in London on July 13, 2018, were unsealed in separate court filings submitted in the lawsuit.

Steele’s full deposition totaled 145 pages. The portions published Thursday focus mainly on questions about the dossier’s claims about Aleksej Gubarev, a tech executive who Steele alleges took part in the hacking of Democrats’ computer systems.

Gubarev has vehemently denied the claim and sued Steele and BuzzFeed News, which published the dossier on Jan. 10, 2017.

U.S. District Court Judge Ursula Ungaro, who handled the lawsuit, ordered a slew of previously sealed documents to be made public Thursday. Ungaro dismissed the lawsuit on Dec. 19 but did not weigh in on whether the dossier’s claims about Gubarev were accurate.

It is unclear whether Steele’s entire deposition will be released. A source familiar with Steele’s interview tempered expectations of any bombshells in the document, saying that Steele avoided going into detail about his efforts to create the dossier and his sources.

A deposition given by former State Department official David Kramer was perhaps the most enlightening document contained in the dump.

Kramer, a longtime associate of late Arizona Sen. John McCain, was BuzzFeed’s source for the dossier. Kramer shared the dossier with at least 11 other reporters, including CNN’s Carl Bernstein. (RELATED: John McCain Associate Gave Dossier To A Dozen Reporters)

Kramer obtained the dossier in late November 2016 after visiting Steele in London. Steele acknowledged that Kramer and McCain were picked as conduits to pass the dossier to then-FBI Director James Comey. McCain met with Comey on Dec. 9, 2016 and provided all of the dossier’s memos that had been written up to that point.

“I think they felt a senior Republican was better to be the recipient of this rather than a Democrat because if it were a Democrat, I think that the view was that it would have been dismissed as a political attack,” Kramer said in the deposition when asked why Steele and his business partners at Fusion GPS wanted McCain to meet with Comey.

Via Washington Examiner

Former British spy Christopher Steele admitted that he relied on an unverified report on a CNN website for part of the “Trump dossier,” which was used as a basis for the FBI’s investigation into Trump.

According to deposition transcripts released this week, Steele said last year he used a 2009 report he found on CNN’s iReport website and said he wasn’t aware that submissions to that site are posted by members of the public and are not checked for accuracy.

web archive from July 29, 2009 shows that CNN described the site in this manner: “iReport.com is a user-generated site. That means the stories submitted by users are not edited, fact-checked, or screened before they post.”

In the dossier, Steele, a Cambridge-educated former MI6 officer, wrote about extensive allegations against Donald Trump, associates of his campaign, various Russians and other foreign nationals, and a variety of companies — including one called Webzilla. Those allegations would become part of an FBI investigation and would be used to apply for warrants under the Foreign Intelligence Surveillance Act.

During his deposition, Steele was pressed on the methods he used to verify allegations made about Webzilla, which was thought to be used by Russia to hack into Democratic emails.

When asked if he discovered “anything of relevance concerning Webzilla” during the verification process, Steele replied: “We did. It was an article I have got here which was posted on July 28, 2009, on something called CNN iReport.”

“I do not have any particular knowledge of that,” Steele said when asked what was his understanding of how the iReport website worked.

When asked if he understood that content on the site was not generated by CNN reporters, he said, “I do not.” He was then asked: “Do you understand that they have no connection to any CNN reporters?” Steele replied, “I do not.”

He was pressed on this further: “Do you understand that CNN iReports are or were nothing more than any random individuals’ assertions on the Internet?” Steele replied: “No, I obviously presume that if it is on a CNN site that it may has some kind of CNN status. Albeit that it may be an independent person posting on the site.”

When asked about his methodology for searching for this information, Steele described it as “what we could call an open source search,” which he defined as “where you go into the Internet and you access material that is available on the Internet that is of relevance or reference to the issue at hand or the person under consideration.”

Steele said his dossier contained “raw intelligence” that he admitted could contain untrue or even “deliberately false information.”

Steele was hired by the opposition research firm Fusion GPS to investigate then-candidate Donald Trump in 2016. Fusion GPS was receiving funding at the time from the Clinton campaign and the DNC through the Perkins Coie law firm.

The series of memos that Steele would eventually compile became known as the “Trump Dossier.” The dossier was used in FISA applications to surveil Trump campaign associate Carter Page.

When asked whether he warned Fusion GPS that the information in the dossier might be “Russian disinformation,” Steele admitted that “a general understanding existed between us and Fusion … that all material contained this risk.”

Steele also described his interactions with Sen. John McCain’s aide, David Kramer, whose own deposition showed that he provided BuzzFeed with a copy of the dossier and had spoken with more than a dozen journalists about it.

“I provided copies of the December memo to Fusion GPS for onward passage to David Kramer at the request of Sen. John McCain,” Steele said. “Sen. McCain nominated him as the intermediary. I did not choose him as the intermediary.”

When asked if he told Kramer that he couldn’t “vouch for everything that was produced in the memos,” Steele replied, “Yes, with an emphasis on ‘everything.'”

When asked why he believed it was so important to provide the dossier to Sen. McCain, Steele said: “Because I judged it had national security implications for the United States and the West as a whole.”

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

Latest

Trudeau’s Top Bureaucrat Unexpectedly Quits Amid Growing Corruption Scandal

In a scathing letter to Trudeau, Wernick said that “recent events” led him to conclude he couldn’t hold his post during the election campaign this fall.

Published

on

Via Zerohedge


Since it was exposed by a report in Canada’s Globe and Mail newspaper earlier this month, the scandal that’s become known as the SNC-Lavalin affair has already led to the firing of several of Trudeau’s close advisors and raised serious questions about whether the prime minister was complicit in pressuring the attorney general to offer a deferred prosecution agreement with a large, Quebec-based engineering firm.

And according to the first round of polls released since the affair exploded into public view…

…it could cost Trudeau his position as prime minister and return control to the conservatives, according to the CBC.

Campaign Research showed the Conservatives ahead with 37% to 32% for the Liberals, while both Ipsos and Léger put the margin at 36% to 34% in the Conservatives’ favour.Since December, when both polling firms were last in the field, the Liberals have lost one point in Campaign Research’s polling and four percentage points in the Ipsos poll, while the party is down five points since November in the Léger poll.

Meanwhile, as the noose tightens around Trudeau, on Monday another of the key Canadian government officials at the center of the SNC-Lavalin scandal has quit his post.

Michael Wernick, clerk of the privy council, the highest-ranking position in Canada’s civil service and a key aide to Justin Trudeau, announced his retirement Monday. Trudeau named Ian Shugart, currently deputy minister of foreign affairs, to replace him.

In a scathing letter to Trudeau, Wernick said that “recent events” led him to conclude he couldn’t hold his post during the election campaign this fall.

“It is now apparent that there is no path for me to have a relationship of mutual trust and respect with the leaders of the opposition parties,” he said, citing the need for impartiality on the issue of potential foreign interference. According to Bloomberg, the exact date of his departure is unclear.

As we reported in February, Canada’s former justice minister and attorney general, Jody Wilson-Raybould, quit following allegations that several key Trudeau government figures pressured her to intervene to end a criminal prosecution against Montreal-based construction giant SNC. Wernick was among those she named in saying the prime minister’s office wanted her to pursue a negotiated settlement.

Wernick has since twice spoken to a committee of lawmakers investigating the case, and during that testimony both defended his actions on the SNC file and warned about the risk of foreign election interference, as “blame Putin” has become traditional Plan B plan for most politicians seeing their careers go up in flames.

“I’m deeply concerned about my country right now, its politics and where it’s headed. I worry about foreign interference in the upcoming election,” he said in his first appearance before the House of Commons justice committee, before repeating the warning a second time this month. “If that was seen as alarmist, so be it. I was pulling the alarm. We need a public debate about foreign interference.”

Because somehow foreign interference has something to do with Wenick’s alleged corruption.

Incidentally, as we wonder what the real reason is behind Wernick’s swift departure, we are confident we will know soon enough.

Anyway, back to the now former clerk, who is meant to be non-partisan in service of the government of the day, also criticized comments by a Conservative senator and praised one of Trudeau’s cabinet ministers.

Wernick’s testimony was criticized as overly cozy with the ruling Liberals. Murray Rankin, a New Democratic Party lawmaker, asked the clerk how lawmakers could “do anything but conclude that you have in fact crossed the line into partisan activity?” Green Party Leader Elizabeth May said he seemed “willing to interfere in partisan fashion for whoever is in power.”

Whatever Wernick’s true motives, he is the latest but not last in what will be a long line of cabinet departures as the SNC scandal exposes even more corruption in Trudeau’s cabinet (some have ironically pointed out that Canada’s “beloved” prime minister could be gone for actual corruption long before Trump). Trudeau had already lost a top political aide, Gerald Butts, to the scandal. A second minister, Jane Philpott, followed Wilson-Raybould in quitting cabinet.

Separately, on Monday, Trudeau appointed a former deputy prime minister in a Liberal government, Anne McLellan, as a special adviser to investigate some of the legal questions raised by the controversy. They include how governments should interact with the attorney general and whether that role should continue to be held by the justice minister.

As Bloomberg notes, the increasingly shaky Liberal government hasn’t ruled out helping SNC by ordering a deferred prosecution agreement in the corruption and bribery case, which centers around the company’s work in Moammar Qaddafi’s Libya. Doing so would allow the company to pay a fine and avoid any ban on receiving government contracts. That decision is up to the current attorney general, David Lametti; of course, such an action would only raise tensions amid speculation that the government is pushing for a specific political, and favorable for Trudeau, outcome.

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