The Ministry of Finance of the Russian Federation and the Forum of Trade Creditor Group Representatives jointly announced today that they have reached an agreement in principle on the financial terms of a restructuring of certain external trade debt of the former Soviet Union referred to in a Declaration on the Restructuring of the External Trade Debt of the Former USSR published on October 1, 1994.
The Russian delegation was headed by Deputy Minister of Finance Sergei I. Kolotukhin. The Forum is chaired by Dieter Wojahn of Hermes Gesellschaft fur Finanzdienstleistungen mbH of Hamburg, Germany.
The transaction will be effected through an exchange offer under which eligible trade debt will be exchanged for Russian Federation US Dollar Denominated Eurobonds due 2006 to 2010 and Russian Federation US Dollar Denominated Eurobonds due 2007 to 2030, substantially as if the participating creditors were "late joining creditors" under the 1997 rescheduling concluded with the London Club of creditors of the former Soviet Union.
The process of reconciliation of claims will be led on the Russian side by Vnesheconombank on the basis of agreed criteria. Computation of amounts for the exchange and for subsequent payments will also be the responsibility of Vnesheconombank.
Implementation of the exchange will be subject to additional terms and conditions to be announced. It is anticipated that the exchange offer will be officially launched later this year.