On the instruction of the Finance Ministry, Vnesheconombank, which acts as the Russian government's foreign debt payment agent, made payments worth $1.27 billion on August 18-21 to repay the principal and pay interest on its debt to the Paris Club.
VEB also transferred $22.47 billion to the Paris Club to repay its remaining debt ahead of schedule, Vnesheconombank said.
Therefore, VEB said it had transferred the sum equivalent of $23.7 billion to Paris Club creditors.
In May 2005, Russia paid off $15 billion at par to the Paris Club ahead of schedule. The Russian government reached an understanding with the club's creditors on the second tranche of its early debt payment June 16 in Paris.
Economic Development and Trade Minister German Gref earlier said Russia would save $7.7 billion on its debt prepayment to the Paris Club and would channel the money into investment.