Associated Press

Damascus, May 30:

Russia agreed to write off nearly three-quarters of Syria’s $13 billion debt in a bid to boost economic relations between the two countries. The agreement was signed by Russian finance minister Alexei Kudrin and his Syrian counterpart Mohammad al-Hussein at a news conference in Damascus. Russia had decided to write off a vast portion of Syria’s debt during Syrian president Bashar Assad’s visit to Moscow in January. The debt accumulated largely during the Soviet era when annual bilateral trade reached nearly $1 billion and when Damascus was a key Soviet ally in the Middle East. Al-Hussein said the agreement would lead the two countries to strengthen economic ties. Sunday’s write-down was to be followed by other agreements in investment, trade and banking cooperation, “and would lay down the foundations for a new era of bilateral relations,” he told reporters. Al-Hussein said the two countries would discuss in the next few weeks “important economic projects” because the Russian side is interested in the oil, gas, energy and tourism fields. “But the top priority is for investment projects,” he said. The write-off would leave Syria with just over $3.6 billion owed to Moscow.