MOSCOW, May 30 (RIA Novosti) - Russia and Kuwait signed Tuesday an agreement on settling the former Soviet Union's debt to Kuwait.
Russia's Finance Minister Alexei Kudrin and Kuwaiti Energy Minister Sheikh Ahmad Fahad al-Ahmad al-Sabah signed the agreement, under which $1 billion be paid in cash and $600 million in interest in goods.
"Part of the debt will be settled in goods, which is important both for Russia and Kuwait, as a $600 million order is a serious order for Russia," Alexei Kudrin said. "Russia will pay $1 billion in cash payments."
Deputy Finance Minister Sergei Storchak said Russia would repay $350 million of the debt this year and would repay the rest over the next three and a half years.
The $600 million in interest will be settled by supplies of military products and machine-building goods, Storchak said, adding that Kuwait had agreed to forgive another $400 million in interest.
