The Kremlin explained the benefits of writing off $20 billion of debt for Africa


photo: Natalia Gubernatorova

Press Secretary of the President of Russia Dmitry Peskov explained why Russia has written off $ 20 billion debt of African countries and what benefits from it.

«This debt burden has impeded the development of cooperation», — said Peskov. He explained that having a large debt to the African company had by law the right to go to some new projects with Russian companies, and «a clearing».

«The debts are ephemeral, transient, but now cleared the whole field»,» added Sands.

A Kremlin spokesman said that now the Russian companies operating in Africa to make money to pay large taxes to the budget.

«It’s a big employment, an expansion in the global and African markets,» stated Sands.

He also called the debt forgiveness «a mutually beneficial, substantive, pragmatic approach to managing trade and economic relations».

Peskov also criticized the «oxaloacetic experts», who were dissatisfied with the debt relief. Peskov noted that this is not a momentary decision, since Russia joined the IMF program to alleviate the debt burden of African States in 1996. Debts were written off according to the government decree of 2006. Peskov reiterated that these debts were irrecoverable.

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