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. Last Updated: 07/27/2016

Ukraine, Russia Swap '93-'94 Debts

Russia and Ukraine each plan to write off $450 million worth of mutual debts owed for fuel and defense material, Interfax news agency reported Saturday, quoting a Russian government official.

In a mutual debt settlement accord, Russia will cancel $250 million worth of Ukrainian debts for shipments of Russian oil and other commodities received in 1993-1994, along with $200 million of repayments for government credits.

Meanwhile, Ukraine will write off $450 million owed by Russia for fissile material extracted from tactical nuclear weapons transferred to Russia under disarmament accords.

In May, the two ex-Soviet republics signed a friendship pact aimed at stabilizing relations which have been strained over division of the Black Sea fleet and trade disputes.

Russian gas giant Gazprom cut its deliveries to Ukraine by 16 percent in July, in a bid to force payment of more than $100 million in overdue bills.