Russia continues to inject into African regimes, underscored by the bid to write off millions of African debt dollars. Moscow’s government is looking to implement the debt-for-development initiative looking to ease Africa’s liability burden. Moreover, Putin is finalizing to write off Ethiopia’s $ 163. 6 million. In total, Russia has written off well over $ 20 billion worth of debt post the Soviet Union.
According to President Putin, the move was necessary as many African beneficiaries of Kremlin’s loans we unable to pay interest. Speaking before the Russia-Africa Forum in Sochi, the President explained that it is essential that Russia- Africa co-operations to start on a clean slate.
“Let me point out that in the post-Soviet period, Russia canceled $20 billion of African countries’ debts to the Soviet Union. This was both an act of generosity and a pragmatic step because many of the African states were struggling to service those debts,” Putin told Tass.
Russia’s renewed series of debt write-offs link closely to arms deals with African Countries. For instance, the debt write-off for Ethiopia relates closely to Moscow’s plan to expand Russian Military tech co-operation with Ethiopia.
Russia is looking to make more financial concessions to African countries as other superpowers continue the quest for Africa. In addition to debt forgiveness for Ethiopia, Kremlin extended the debt-for-development program to Madagascar, Tanzania, and Mozambique.
The world anticipates more moves from Russia as the Russia-Africa economic summit reaches its end today.