Russia, Croatia sign deal on Soviet-era debt to Yugoslavia

MOSCOW, July 24 (RIA Novosti) - Russia and Croatia have signed an agreement to settle Russia's Soviet-era debt to Croatia totaling $185.7 million, as part of debt payments to the former Yugoslavia, diplomats said Monday.

The deal was signed by Russian Deputy Finance Minister Sergei Storchak and Croatian Finance Minister Ivan Suker, the Russian Foreign Ministry said.

In September 2003, Russia, which took on the Soviet Union's entire foreign debt, signed a multilateral memorandum with the five successor countries of the former Yugoslavia on Soviet-era debt totaling 1.292 billion clearing dollars, and agreed on a clearing dollar rate of $0.625, giving the debt a total value of $800 mln.

Apart from the $185.7-mln debt to Croatia, the sum included 200.3 mln ($125.2 mln) owed to Bosnia and Herzegovina, 96.9 mln ($60.6 mln) to Macedonia, 490.9 mln ($306.8 mln) to Serbia and Montenegro, and 206.7 mln ($129.2 mln) to Slovenia.

The debt to Serbia and Montenegro will be exchanged for equipment for hydro- and thermo-power plants, and gas and oil pipelines.