Foreign Governments' Debt to Russia Reaches $33.1 Billion — A 26-Year High: An Analysis of Major Debtor Nations, the Role of the CIS, and Investment Risks for Global Investors.
In 2024, foreign governments' debt to Russia increased by $2.6 billion, reaching $33.1 billion — the highest level since 1998. This assessment is provided by the World Bank, which indicates that Russian loans to international partners are actively expanding despite sanctions pressure. Moscow has become a significant lender to various developing countries, increasing its issuance of government loans and export credits.
According to the World Bank, by the end of 2024, 38 countries owed money to Russia. For the first time in decades, the largest debtor is not a CIS country: Bangladesh has surpassed Belarus to take the top spot with a debt of $7.8 billion. Belarus's debt has decreased to $7.6 billion, placing it in second position. The top five borrowers also include India ($4.9 billion), Egypt ($4.1 billion), and Vietnam ($1.4 billion).
A New Debt Record and Historical Context
The external debt volume owed to Russia has reached a record level since the post-Soviet era. The previous peak occurred in 1998 when the total debt of foreign governments amounted to approximately $38 billion. However, during the late 1990s, a significant portion of this amount was inherited from the Soviet era and was subsequently restructured or written off. In the 2000s, Moscow undertook widespread debt forgiveness for developing countries—estimating that over $100 billion was forgiven to African, Asian, and Latin American nations as part of initiatives to alleviate debt burdens and strengthen diplomatic ties.
Thanks to these write-offs of old debts, the total debt owed to Russia significantly decreased by the 2010s. The current increase to $33 billion is primarily due to new loans issued by Russia over the past decade. Unlike the Soviet era, today’s loans are targeted—designed to finance specific projects and support allies. Thus, the current record level of debt reflects Russia's intensified role as a lender in the new geopolitical landscape.
Top 5 Debtors to Russia
A substantial portion of the debt is concentrated in just a few countries. By the end of 2024, the five largest borrowers accounted for nearly 80% of the total debt owed to Russia. The leaders are as follows:
- Bangladesh — $7.8 billion (an increase of $1.2 billion over the year)
- Belarus — $7.6 billion (a decrease of $125 million over the year)
- India — $4.9 billion (an increase of $799 million over the year)
- Egypt — $4.1 billion (an increase of $815 million over the year)
- Vietnam — $1.4 billion (no change over the year)
For comparison, the smallest debt owed to Russia comes from the small island nation of Grenada, with just around $2,000, indicating either complete repayment or a nominal commitment. The contrast between the largest and smallest debtors highlights the concentration of Russia's credit portfolio: the two leading countries (Bangladesh and Belarus) together account for nearly half of all the debts owed to Russia.
CIS Countries: The Importance of Neighbors and Allies
Until recently, CIS countries dominated the list of Russia's debtors. Belarus had long remained the largest borrower, regularly attracting Russian loans to support its budget and implement joint projects. Its current second position ($7.6 billion in debt) reflects the ongoing close financial ties between Minsk and Moscow, although a slight decrease in debt in 2024 indicates that Minsk has begun to repay some obligations.
Other post-Soviet states have significantly lower debts to Russia. For instance, Uzbekistan only increased its debt by $39 million in 2024—likely due to the utilization of new credit lines for infrastructure projects. The Caucasian countries have nearly eliminated their debts: Georgia, for example, fully repaid its remaining historical debt to Russia in 2025. Overall, the share of CIS countries in the total external debt owed to Russia has declined, yielding ground to nations in Asia and Africa; however, for key allies—such as Belarus—Russian loans remain critically important.
Export Projects and Strategic Interests
The growth of debt among these countries to Russia is driven by a targeted lending policy that serves both economic and geopolitical objectives. A significant portion of Russian loans is tied to specific projects, such as the construction of nuclear power plants. Bangladesh has received financing from Russia for the construction of the "Ruppur" nuclear power plant—explaining its rapid debt increase of almost 19% over the year. Similarly, Egypt is ramping up borrowing for the "El-Dabaa" nuclear power plant and other infrastructure projects, contributing to a 24% increase in its debt in 2024. Such projects ensure large export contracts for Russian companies (particularly Rosatom) and a lasting presence in partner markets.
Another driver is the financing for purchasing Russian products, primarily military equipment. India—a traditional purchaser of Russian arms—increased its debt by nearly $800 million over the past year, likely as part of payment for the delivery of air defense systems and other equipment on deferred payment terms. Similarly, Vietnam and Egypt have received state export credits for military equipment in previous years. By extending credit to foreign clients, Moscow supports the export of its high-tech goods and strengthens defense cooperation.
Financial Risks and Investment Aspects
For Russia, lending to other countries is a form of investment, albeit one fraught with risks. Loans are typically provided on concessional terms: for example, nuclear plant credits have long grace periods and relatively low interest rates. This helps partners service their debt, but means moderate returns for the lender itself. Nevertheless, such loans are tied to future fuel supplies, maintenance of equipment, and other ancillary services, creating long-term profit sources for Russian companies.
However, the risks of non-repayment remain. Some of Russia's debtors are experiencing debt burdens and economic difficulties. Egypt, for instance, is facing a currency deficit, while Belarus's economy heavily relies on support from Moscow. In the event of defaults or the need for restructuring, the Russian budget would have to absorb the costs, as it has previously with the debts of several countries. Currently, the total volume of such assets ($33 billion) is not critical for the Russian economy (less than 2% of GDP), but it is significantly increasing. Investors must consider that the expansion of external credit is part of Russia's strategy to bolster its influence, bearing costs in the form of frozen capital and potential losses in adverse scenarios.
Outlook: Further Growth of the Credit Portfolio
According to budget plans, Russia does not intend to reduce the volume of external lending. For 2026–2028, the federal budget allocates about 1.8 trillion rubles (approximately $18.5 billion) for government and export credits to foreign countries—this is 14% more than previously planned. These resources will primarily be directed toward "friendly" countries for financing infrastructure projects, equipment supplies, and other needs.
Should all planned loans be realized, the total debt owed to Russia could reach historical highs in the coming years, surpassing the levels of the late 1990s. This will strengthen Moscow's presence in the economies of its partners while simultaneously increasing potential risks of defaults. Global investors should closely monitor this dynamic: the expansion of Russia's credit portfolio reflects a redistribution of financial influences worldwide—from traditional Western donors to new lenders like Russia and China. For borrowing countries, Russian funds are becoming an alternative development source, and for Moscow, a tool of "soft power" and expanded economic influence.
