MOSCOW, December 9 (RIA Novosti) - Russia's Finance Ministry has denied a report that the country had agreed to write off most of Cambodia's debt, a Finance Ministry official said on Tuesday.

China's Xinhua news agency earlier on Tuesday quoted Chep Yeam, a senior Cambodian MP, as saying that Russia had agreed to write off 70 % of the debt that Cambodia owes.

"We do not confirm this information. The talks are underway. The debt exists and should be settled under Paris Club agreements. But we have not signed a bilateral agreement," said Konstantin Vyshkovsky, the head of the ministry's international financial relations department.

Valery Yazev, deputy speaker of the lower house of Russia's parliament, said in November after a trip to Cambodia and Laos that Russia and Cambodia were in talks to write off Cambodia's debt of around $1.5 billion.

"The principal sum [about 70%] of the debt could be written off as part of Russia's participation in the Paris Club of Creditor Nations," Yazev said, adding that the debt's outstanding part could be divided in two and settled at concessionary interest rates.

The MP said the next round of negotiations on settling Cambodia's debt to Russia would be held early next year in Moscow.