North Korea Has $11 Billion of Debt to Russia, Storchak Says
North Korea owes Russia $11 billion of debt that dates back to the Soviet period and the two countries have resumed talks to restructure the Asian state’s liabilities, Deputy Finance Minister Sergei Storchak said.
Russia hasn’t lent money to North Korea since the collapse of the Soviet Union in 1991 because the communist state hasn’t settled its debt, Storchak told reporters at a military base near Ulan-Ude, a Siberian city close to the border with Mongolia. North Korea also has yet to recognize Russia as the successor to the Soviet Union, he said.
Russian President Dmitry Medvedev agreed on a joint approach to debt restructuring with North Korean leader Kim Jong Il at their meeting near Ulan-Ude today, said a Kremlin official, who declined to be identified in line with government policy. Russia and North Korea restarted talks on the issue a month and a half ago after a long pause, the official said.
The resumption of negotiations is seen as a breakthrough by the Russian delegation attending today’s meeting, according to the official.
To contact the reporter on this story: Ilya Arkhipov in Ulan at iarkhipov@bloomberg.net
To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net
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