Leaders among borrowers
In 2021 Russia extended loans to Iran for the first time since the early 1990s. By the end of the year, the largest debtors to Russia were Belarus, Bangladesh and India, according to World Bank data.
Belarus increased its outstanding debt to Russia by 1.9 percent to 8.5 billion dollars in 2021. Bangladesh rose to second place, with debt growing by nearly a third from 3.3 billion to 4.4 billion dollars. Vietnam followed, up 0.9 percent to 1.5 billion dollars, placing fourth, while Yemen held sixth place with a debt around 1.17 billion dollars.
The biggest year over year increases in Russia related debt in 2021 were in Uzbekistan, where obligations jumped 77 percent to 254.7 million dollars, Egypt up 63.7 percent to 867.2 million dollars, and Pakistan up 20.8 percent to 86.7 million dollars.
World Bank figures show that Iran owed Russia 251 thousand dollars in 1992. By the end of 2021 the amount stood at about six million dollars. In total, 38 countries owed Russia 26.54 billion dollars at year end, a rise of 7.4 percent in 2021. Regional shares were Asia with 12.06 billion dollars, Europe with 10 billion, the Middle East with 3.05 billion, Africa with 1.35 billion and Latin America with 86.1 million.
New loan to Belarus
Belarus expanded its obligations to Moscow in 2022 by more than 1.5 billion dollars. On April 22 Belarusian Finance Minister Yury Seliverstov stated on Belarus 1 television that Russia granted Minsk a payment deferral of about a year, allowing more than 1 billion dollars to be postponed as part of loan obligations.
Speaking on the matter, Seliverstov noted that the deferral was a sign of partnership and would help manage near term commitments. He added that currently the country would pay no more than a billion dollars and that this adjustment was a friendly gesture from Belarusian partners.
Later that year, September 1, President Alexander Lukashenko announced Russia would allocate roughly two billion dollars to joint projects in the field of import substitution. He described a broad program spanning military strategic cooperation to civilian industrial projects, with a focus on reciprocal development and mutual benefit. He also indicated that the earliest efforts would involve projects connected to the Memory Train, and other initiatives aimed at strengthening bilateral ties. He stressed that Belarus would deepen cooperation with its principal strategic partner, Russia.
The Belarusian Ministry of Industry stated that these funds would support import substitution efforts within Belarus, especially in the engineering sector. On November 16, a Belarusian government Telegram post announced a signed agreement for a loan of 105 billion rubles about 1.6 billion dollars to back import substitution projects. The document was signed by the heads of the Belarusian and Russian finance ministries, with twelve projects identified for financing.
Around April 2, Belarusian Prime Minister Roman Golovchenko indicated plans to sign a treaty with Russia on preferential tariffs for Belarusian goods moving to Russian ports. He recalled a prior agreement that granted a 50 percent discount on transporting Belarusian oil products by rail to Russian ports, aligning with broader transport and trade facilitation measures.
Belarusian import substitution funded by Russia
In late November, President Lukashenko told a meeting with regional officials that Minsk and Moscow had weathered sanctions and a wave of company withdrawals by advancing import substitution ideas. He portrayed the shift as a joint effort within the Union State to adapt and thrive amid external pressure.
Lukashenko asserted that the two countries had identified a clear path forward, emphasizing that while progress might not be instantaneous, the pace was accelerating. He noted ongoing negotiations with the Russian side and stressed that capital alone would not determine outcomes; both sides needed time and disciplined implementation. He highlighted the plan to launch more than a dozen cooperative projects financed by Russian loans aimed at boosting domestic production and value addition.
Finance Minister Yury Seliverstov later announced that Belarus intended to begin financing import substitution initiatives with Russian credit by the end of 2022, with roughly 15 projects in the pipeline. He explained that borrowed resources would be repaid through generated profits and added value, supporting job creation and economic resilience.