Question to the HM Treasury:

To ask Her Majesty’s Government, further to the Written Answer by Baroness Neville-Rolfe on 9 January (HL4374), what negotiations took place between 1989 and 1993 about the former Soviet Union's international debt; upon what conditions Russia assumed that debt; and whether Russia welcomed that arrangement.

Negotiations took place in 1991 between the G7 and eight Soviet national republics, leading to a Memorandum of Understanding through which the eight republics agreed to take joint responsibility for Soviet debt. This was followed by an Inter-State Agreement on the Succession of External Debts & Assets of the USSR (December 1991) that divided Soviet overseas debts and assets between eight of the republics.

When it became clear that only Russia was able to make debt repayments, Russia assumed the full debt in exchange for the other states’ shares of Soviet overseas assets. This was negotiated between Russia and nine successor states between 1992 and 1994.

The Treasury does not hold information as to whether Russia welcomed the arrangement.