Russia, Venezuela Sign Deal on $3.15 Billion Restructuring
- Ten-year pact includes ‘minimal’ payments over next 6 years
- Venezuela official says terms ‘favorable,’ sees more trade
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Russia signed an agreement to restructure $3.15 billion of debt owed by Venezuela, throwing a lifeline to a crisis-wracked ally that’s struggling to repay creditors.
The pact gives Venezuela some much-needed breathing room as it faces the much more complicated task of restructuring its $140 billion of bonds and foreign loans. For Russia, the deal underscores the costs that come with President Vladimir Putin’s geopolitical ambitions across the globe. A $900 million hole had been left in its 2017 budget plan by Venezuela’s failure to pay on time. As China has seen scaling back its presence in the oil-rich country, Russia has been standing by its old ally, raising concern in some circles in Washington.