Russia has formally written off 90 percent of North Korea’s debt, apparently to enable the construction of the much-talked-of gas pipeline that would stretch from Russia through the North and into the South.
The lower house of the Russian Duma on Friday ratified a 2012 agreement to write off nearly $10 billion in North Korean debt, left over from the Soviet era. The total debt was equivalent to $10.96 billion as of September 2012.
The remainder of the debt, equal to $1.09 billion, is to be paid off in installments every six months.
Russia’s Deputy Minister of Finance Sergie Storchak