Ukraine and Russia reach agreement on division of Soviet debts assets (01/24/93)

Ukraine and Russia reach agreement on division of Soviet debts assets

by Viktor Zubaniuk
Special to IntelNews

KYYIV - A protocol on the division of assets and liabilities of the former USSR that was signed at the recent Moscow summit is a great achievement for Ukraine, said Ukrainian First Deputy Prime Minister Ihor Yukhnovsky at a press conference on Wednesday, January 20.

Dr. Yukhnovsky praised the signing because he said it represented a concession on the part of Russia, which had previously attempted to become the sole inheritor of the assets and liabilities of the former USSR. Ukraine can now count on a share of 16.37 percent of the assets. In addition, Dr. Yukhnovsky said, the agreement was a "de facto recognition, finally, of Ukraine's independence." (The full text of the protocol appears on page 2.)

The protocol requires Ukraine to pay its part of the Soviet debt, which has been estimated at $81 billion (U.S.). Of this amount, Ukraine has thus far agreed to pay $38 billion. Ukrainian officials said they are holding an investigation to determine whether the remaining $43 billion was spent on Ukraine's needs and whether Ukraine will repay the balance.

Dr. Yukhnovsky said property held abroad by the former USSR, primarily embassy buildings and other government representations, encompassed 533 hectares of land and 1.14 million square meters of floor space. Of this, Ukraine is claiming 100 hectares of land and close to 200,000 square meters of space.

Ukraine will also receive its share of the gold and diamond reserves and former Soviet investments abroad. "In signing this protocol," Minister Yukhnovsky said, "we have defended the interests of many of our businesses and industries with regard to property and other items of major economic significance located abroad. In particular, I am referring to commercial fishing ventures, bauxite mining in Guinea and Jamaica, our interests in the joint construction of an india-rubber and latex plant in Bulgaria, or in the mining of phosphorite in Egypt."

Dr. Yukhnovsky said five government commissions were formed on January 19 to expedite Ukraine's acquisition of this property. He also said that in the near future a Kyyiv-Moscow Club of Creditors will be formed, with the help of which Ukraine and Russia will jointly decide how to collect on debts of former Soviet satellites and developing countries, which together owe the former USSR close to $96 billion (U.S.).

Next week the heads of the London and Paris clubs of creditors are scheduled to arrive in Ukraine to discuss the division and payment schedule of the former Soviet Union's external debt. Minister Yukhnovsky cited the economic crisis in Ukraine and Russia as a major factor in the two countries' decision to request a delay of one year (until 1994) in the repayment of interest on credits received.

The first deputy prime minister also said Ukraine and Russia had agreed to the division of hard currency earnings from the sale of military hardware manufactured in Russia, but whose components were produced in Ukraine.

| Home Page |