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186047
Thu, 06/02/2011 - 11:36
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http://m.oananews.org//node/186047
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Russia repays two-decade rice debt to Thailand
BANGKOK, June 2 (TNA) - Russia has now agreed to repay a two-decade rice debt to Thailand, worth some 36 million US dollars or more than one billion baht, over the next 30 days.
Thai caretaker commerce minister Pornthiva Nakasai has signed in a document with Russian Deputy Finance Minister Sergey Storchak in Moscow--under which Russia is legally obliged to repay the long-time debt to Thailand by July 12.
Moscow has been indebted with Thailand since 1990 when it inked a government-to-government (G-to-G) deal with the Thai side to purchase 200,000 tonnes of Thai rice. The then Soviet Union, however, collapsed a year later, leading to a series of negotiations between Thai and Russian authorities for the new Moscow government of the Russian Federation to, instead, repay the rice debt to Thailand. An agreement was then reached--under which Russia has promised to repay the 36-million-US dollar debt, which is the principal of the rice trade, after the Thai Cabinet has approved a waiver of the remaining interest following Moscow's partial repayment of the interest of the deal.
Pornthiva hailed the development as a compromise to maintain good relations between Bangkok and Moscow, saying that Russia remains a major world rice importer, at about 400,000 tonnes annually.
According to the Thai caretaker commerce minister, the Russian market has been growing with its total import from Thailand worth about 700 US dollars last year, some 90 per cent surge from 2009, and its import of Thai rice alone standing at some 50,000 tonnes.
During the first four months of this year, Russia's total import from Thailand reached some 400 million US dollars--although Moscow has mostly maintained its trade surplus with Thailand. (TNA)
Thai caretaker commerce minister Pornthiva Nakasai has signed in a document with Russian Deputy Finance Minister Sergey Storchak in Moscow--under which Russia is legally obliged to repay the long-time debt to Thailand by July 12.
Moscow has been indebted with Thailand since 1990 when it inked a government-to-government (G-to-G) deal with the Thai side to purchase 200,000 tonnes of Thai rice. The then Soviet Union, however, collapsed a year later, leading to a series of negotiations between Thai and Russian authorities for the new Moscow government of the Russian Federation to, instead, repay the rice debt to Thailand. An agreement was then reached--under which Russia has promised to repay the 36-million-US dollar debt, which is the principal of the rice trade, after the Thai Cabinet has approved a waiver of the remaining interest following Moscow's partial repayment of the interest of the deal.
Pornthiva hailed the development as a compromise to maintain good relations between Bangkok and Moscow, saying that Russia remains a major world rice importer, at about 400,000 tonnes annually.
According to the Thai caretaker commerce minister, the Russian market has been growing with its total import from Thailand worth about 700 US dollars last year, some 90 per cent surge from 2009, and its import of Thai rice alone standing at some 50,000 tonnes.
During the first four months of this year, Russia's total import from Thailand reached some 400 million US dollars--although Moscow has mostly maintained its trade surplus with Thailand. (TNA)
