Russia will repay $125 million of the former USSR’s debt to Bosnia and Herzegovina

The Russian Federation will repay the part of the former USSR’s debt to Yugoslavia in the amount of USD 125 million to Bosnia and Herzegovina, as stipulated in a decree signed by the Prime Minister of Russia, Dmitry Medvedev, as reported by TASS.

The decree reads: “To approve the draft agreement between the Russian Government and the Council of Ministers of Bosnia and Herzegovina on the resolution of liabilities of the former USSR under settlements related to trade turnover between the former USSR and the Socialist Federal Republic of Yugoslavia, submitted by the Russian Ministry of Finance and agreed to by relevant federal executive bodies, the Bank for Development and Foreign Economic Affairs, and Bosnia and Herzegovina.”

The document states that Bosnia and Herzegovina will distribute funds received from Russia in the following proportion: 58% for the Federation of Bosnia and Herzegovina and 29% for Republika Srpska. Recently, the President of Croatia, Kolinda Grabar-Kitarović, stated that a new conflict in the Balkans may arise because Russia is actively trying to influence events in the region.

According to her, the referendum in Republika Srpska was only the first step in series of potential referendums and may even lead to the independence of Republika Srpska. Recently, nationalist parties won an overwhelming victory in local elections in Bosnia.

The pro-Russian separatist party led by Milorad Dodik, which has been leading the local government for more than a decade, defeated a pro-EU Coalition and won 30% more municipalities than in past elections. The party campaigned on a platform that promised secession of the Republika Srpska from Bosnia.

  Russia, Bosnia