The two countries will discuss the debt in late March against the backdrop of the breakthrough six-nation talks in February, when Pyongyang agreed to dismantle its nuclear program for aid, energy supplies and security guarantees.
Speaking following talks on nuclear disarmament with South Korean Minister of Foreign Affairs and Trade Song Min-soon, Lavrov said: "We expect talks with Pyongyang on the settlement of North Korea's debt to Russia to be completed soon."
In mid-February, Lavrov said Russia would write off most of the North's debt regardless of the nuclear deal to help the impoverished nation ease its economic and financial problems.
Lavrov repeated Tuesday that the matter would be discussed in March at the first session since 2000 of the bilateral inter-government commission, which would also address Russia's energy supplies to North Korea, Korean labor in Russia, plans to continue the construction of the trans-Korean railroad and its link to Russia's Trans-Siberian railway.
Trade turnover between Russia and North Korea in 2006 decreased $31 million, or 13% year-on-year, to a total of $209 million, according to Russia's economics ministry. The North's share was "no more than 10%."
Lavrov said the settlement to the debt issue would "provide more opportunities to decide on Russian contribution to ensuring North Korea's economic and energy needs in a more effective way."
A high-ranking Russian Finance Ministry official said Monday Pyongyang had suggested that Russia write off 100% of its debt.
"Russia has proposed different debt settlement options to North Korea, including debt for investment, debt for property. But North Korea claims it has legislative restrictions to implement Russian proposals," Andrei Barabanov said.
According to the plan of initial disarmament steps adopted at the latest round of six-nation nuclear talks in Beijing February 8-13, the two Koreas, China, the United States, Russia and Japan, agreed to set up five working groups to help the parties along the way toward disarmament. Russia will head the group on security.
Before the nuclear negotiations resumed in December 2006, the North announced it had carried out its first nuclear bomb test.
