PUTIN, RAKHMONOV REACH COMPROMISE ON DEBT ISSUE

MOSCOW, June 4 (RIA Novosti) - Russian President Vladimir Putin and his Tajik counterpart, Emomali Rakhmonov, have reportedly found the key to solving the problem of Tajikistan's outstanding debt to Russia, a source in the Russian government reports. The two leaders are now meeting in the Black Sea resort of Sochi.

"Part of the debt, standing at 299 million dollars as of today, will be invested in various energy projects in Tajikistan, specifically in the construction of the Sangtudinskaya hydro-electric power plant," the source said. According to him, no interest will be charged on the debt in the next two or three years, but if the Tajik side fails to invest in the project, Russia will have it resume interest payments.

"Once the construction of this hydro-electric power plant is completed, part of its shares will go to the Russian Federation," the source said. Russia's Unified Energy Systems (UES) electricity giant is expected to contribute to the project, he said, predicting that the corporation's investment program would be modified accordingly.

According to our interviewee, Tajikistan meets deadlines in servicing its debt to Russia. The next interest payment is due June 15, he said.