Uzbekistan’s debt to Russia increases amid surge in Russian lending

Russia’s total foreign loans surged past $30 billion last year, marking the highest figure since 1999, when loans peaked at $32.8 billion. Significant beneficiaries of Russian credit included Egypt, Bangladesh, and India.

Uzbekistan’s share in Russia’s growing lending portfolio

Uzbekistan’s debt growth aligns with Russia’s expanding international credit activities. Uzbekistan, alongside other countries like Afghanistan and Zambia, contributed to the $1.3 billion increase in Russia’s total outstanding foreign debt, which reached $30.1 billion in 2023.

Key global borrowers

Belarus remains Russia’s largest debtor, with a $7.75 billion obligation, representing 25% of Russia’s total foreign loans. Other major borrowers include:

• Bangladesh: $6.6 billion (22%)
• India: $4.1 billion (14%)
• Egypt: $3.3 billion (11%)
• Vietnam: $1.4 billion (5%)

Egypt saw the largest debt increase in 2023, adding $1.45 billion to its obligations, followed by Bangladesh with $745 million and India with $363 million.

New borrowers and debt reductions

Nicaragua emerged as a new borrower, receiving a $16.9 million loan from Russia, its first since 2003. Meanwhile, several countries reduced their debts, with Somalia achieving the largest reduction due to Russia forgiving most of its $703 million debt, leaving just $49 million.

Other countries that reduced their debts:

• Belarus: $487 million
• Serbia: $117 million
• Armenia: $40 million
• Azerbaijan: $22 million

Additionally, ten countries fully repaid their combined $82 million debts to Russia.