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. Last Updated: 07/27/2016

French Assembly Adopts Bill Settling Tsarist Debt Dispute

PARIS -- The French National Assembly has adopted a bill that settles a dispute with Russia over gold and imperial bonds dating back to the 1917 Bolshevik Revolution.


The agreement, reached in May and approved by the assembly Thursday, resolved several financial disputes between the two countries and paved the way for Russia to join the Paris Club of creditor nations and pursue claims for billions of dollars owed it by developing countries.


Under the agreement, which must still be approved by the Senate, France accepted a smaller than anticipated compensation for holders of tsarist bonds repudiated by the Soviets. Russia in return dropped claims to imperial gold transferred to France during and after the revolution. The pact also enabled Moscow to issue new bonds in France.


The agreement said neither Russia nor France would pursue claims on mutual debts from before May 9, 1945.


France had claimed the Soviet government owed some $30 billion after it repudiated its pre-World War I debt to 400,000 French holders of tsarist bonds.


Under the new agreement, Moscow settled the claim by agreeing to pay France $400 million within three years.


In turn, Moscow said it would drop claims for compensation from Paris for damage caused by France's 1918-22 intervention in the Russian civil war following the 1917 Bolshevik Revolution, according to the document. REUTERS


PARIS -- The French National Assembly has adopted a bill that settles a dispute with Russia over gold and imperial bonds dating back to the 1917 Bolshevik Revolution.


The agreement, reached in May and approved by the assembly Thursday, resolved several financial disputes between the two countries and paved the way for Russia to join the Paris Club of creditor nations and pursue claims for billions of dollars owed it by developing countries.


Under the agreement, which must still be approved by the Senate, France accepted a smaller than anticipated compensation for holders of tsarist bonds repudiated by the Soviets. Russia in return dropped claims to imperial gold transferred to France during and after the revolution. The pact also enabled Moscow to issue new bonds in France.


The agreement said neither Russia nor France would pursue claims on mutual debts from before May 9, 1945.


France had claimed the Soviet government owed some $30 billion after it repudiated its pre-World War I debt to 400,000 French holders of tsarist bonds.


Under the new agreement, Moscow settled the claim by agreeing to pay France $400 million within three years.


In turn, Moscow said it would drop claims for compensation from Paris for damage caused by France's 1918-22 intervention in the Russian civil war following the 1917 Bolshevik Revolution, according to the document.