Russia's external debt has dropped below $300 billion for the first time since 2006

Russia's external debt has dropped below $300 billion for the first time since 2006, according to Central Bank data reviewed by Izvestia. Foreign borrowing by the government and companies has reached its lowest level in 18 years. The reason is that the country is paying off past obligations, but under the conditions of sanctions it does not take on new ones, the experts interviewed explained.

This year alone, the Ministry of Finance plans to pay about $2.1 billion in foreign debt, which leads to its reduction. The active transition of the Russian Federation to settlements in rubles under foreign contracts played a role, which naturally reduced the need for external loans.

Reducing the external public debt strengthens the economic sovereignty of the Russian Federation, but cuts off the country from cheaper loans in conditions when the Central Bank's rate is high and it is expensive to issue OFZs. The entry into the debt market of some friendly countries, such as China or the BRICS countries, may become a source of cheaper capital for the implementation of large projects, the experts concluded.

Read more in the exclusive Izvestia article:

To give, not to take: the external debt of the Russian Federation has decreased to a minimum in 18 years