Russia Grants Belarus Extension for $250 Million Loan Payment
Russia has officially extended a pause on Belarus’s repayment of loans totaling around $250 million. This decision was confirmed after ratification by both the State Duma and the Federation Council in Russia.
Details of the Loan Payment Extension
The agreement for the loan deferral was signed during the summer of 2025. Key dates in this process include:
- June 27, 2025 – Agreement signed in Minsk
- June 30, 2025 – Agreement signed in Moscow
According to Russian Deputy Finance Minister Vladimir Kolychev, this move involves the postponement of payments, which required parliamentary approval. Under this new arrangement, Belarus is permitted to delay the repayment of the principal on Russian loans between 2032 and 2037.
Previous Financial Support
This recent loan extension follows another significant deferment. In March 2024, Russia had already permitted Belarus to postpone payments approximating $800 million. During visits to Russia, the former Minister of Finance of Belarus, Yuri Seliverstov, now serving as Ambassador to Russia, discussed refinancing of old debts and potential new loans for investment projects.
Belarus’s Financial Overview
According to the budget set for Belarus in 2025, the external state debt cap is established at $19.2 billion. The government plans to allocate:
- 10.6 billion Belarusian rubles for repaying both internal and external state debt
- Approximately 4.7 billion Belarusian rubles for servicing the debt
As of July 1, 2025, Belarus’s external debt represented 46% of its GDP. Additionally, the National Bank reported that the gross external debt surged by $2.7 billion in the first half of 2025, reaching a total of $37.7 billion.
Conclusion
The extension of the loan repayment period reflects ongoing financial collaboration between Russia and Belarus. Both nations continue to foster close ties, particularly in financial matters.
