Economist Vasily Koltashov argues that the growing debt owed to Russia by other countries is not a crisis because these loans function more as political leverage than a payment obligation. He notes that such debts can be leveraged to bypass sanctions and that Moscow remains in dialogue with regional partners through NSN to manage the arrangements.
Earlier reporting shows that according to the World Bank, the stock of debt from foreign residents to Russia rose by 2.3 billion dollars, roughly 8.7 percent, toward the end of the previous year. Among the largest debtors, Vietnam, Egypt, India, Belarus, and Bangladesh accounted for substantial sums, with totals reaching a figure around 28 billion dollars. The data indicates a trend of renewed engagement in these financial ties, even as global conditions shift.
Koltashov adds that right now only India and Egypt appear capable of fully settling their debts, yet Russia is not pressing for immediate repayment. Instead, it continues to receive interest payments in rubles from its partners, maintaining a steady flow of returns while the principal remains outstanding.
He characterizes these debts as political instruments rather than urgent financial obligations. In his view, the loans enable Moscow to maintain influence by supporting partner economies and, in return, securing avenues for cooperation in trade and other areas. With the value of the dollar fluctuating, the relative value of gold-backed obligations has changed, making repayment less attractive for some borrowers and making interest collection more advantageous for lenders. In this view, both sides often benefit from the arrangement, and the overall dynamic appears stable for the moment.
The economist also notes that Russia is issuing new debt at a slower pace. In the current climate, he suggests, it is more advantageous to receive payments in rubles and yuan than in dollars. This strategy is supported by the role Chinese banks can play as intermediaries in settlement processes, a development that some observers view as opening alternative channels for debt management and international financial cooperation.
As a reminder of the scale involved, by the end of 2022 Vietnam owed Russia 1.39 billion, Egypt 1.82 billion, India 3.75 billion, Bangladesh 5.86 billion, and Belarus 8.24 billion U.S. dollars. The broader pattern shows a mix of debt levels and repayment capacity across these economies, reflecting a complex web of financial and political relationships that persist beyond simple loan tallies.
Russian President Vladimir Putin has previously indicated a plan to reduce the country’s external debt by about 14 billion dollars, signaling a strategic aim to recalibrate international liabilities over time while maintaining favorable terms for ongoing cooperation with key partners.