Foreign Governments' Debt to Russia Rises to $33.1 Billion — The Highest in 26 Years: An Analysis of Major Debtor Countries, the Role of the CIS, and Investment Risks for Global Investors
In 2024, the debt of foreign governments to Russia grew by $2.6 billion, reaching $33.1 billion — the highest level since 1998. This assessment comes from the World Bank, which indicates that Russian lending to foreign partners is actively expanding despite sanctions pressure. Moscow has become a significant creditor to a number of developing countries, increasing the issuance of government loans and export credits.
According to the World Bank, by the end of 2024, 38 countries had debts to Russia. For the first time in decades, the largest debtor is not a CIS country: Bangladesh has surpassed Belarus and moved into first place with a debt of $7.8 billion. Belarus' debt, meanwhile, has decreased to $7.6 billion, placing it in second position. The top five largest borrowers also include India ($4.9 billion), Egypt ($4.1 billion), and Vietnam ($1.4 billion).
A New Peak of Debt and Historical Context
The volume of external debts to Russia has reached a record value for the post-Soviet period. The previous peak was in 1998, when the debt of foreign governments amounted to about $38 billion. However, at the end of the 1990s, a significant part of this amount was a legacy of the Soviet era and was subsequently restructured or written off. In the 2000s, Moscow carried out a substantial write-off of debts owed by developing countries—estimates suggest that over $100 billion was forgiven to countries in Africa, Asia, and Latin America as part of initiatives aimed at alleviating the debt burden and strengthening diplomatic ties.
Thanks to these debt write-offs, the overall debt to Russia significantly decreased by the 2010s. The current growth to $33 billion is primarily due to new loans issued by Russia over the past decade. Unlike the Soviet era, modern loans are targeted—they are aimed at financing specific projects and supporting allies. Thus, the current record level of debt reflects Russia's enhanced role as a creditor in the new geopolitical circumstances.
Top 5 Largest Debtors to Russia
The bulk of the debt is concentrated in a few countries. By the end of 2024, the five largest borrowers accounted for nearly 80% of the total debt to Russia. The leading countries 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 to Russia belongs to the small island nation of Grenada—only about $2,000, indicating either complete settlement or a symbolic nature of obligations. The contrast between the largest and smallest debtors underscores the concentration of Russia's credit portfolio: the top two countries (Bangladesh and Belarus) together account for almost half of all debts owed to Russia.
CIS Countries: The Importance of Neighbors and Allies
Until recently, CIS countries topped 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 continued close financial ties between Minsk and Moscow, although the slight decline in debt in 2024 indicates that Minsk has begun to pay off some of its obligations.
Other states in the post-Soviet space have significantly lower debts to Russia. For example, Uzbekistan increased its debt by only $39 million in 2024—presumably through the utilization of new credit lines for infrastructure projects. The Caucasian countries have almost eliminated their debts: Georgia, for instance, completely settled its remaining historical debt to Russia in 2025. Overall, the share of CIS countries in the total external debt to Russia has decreased, giving way to countries in Asia and Africa; however, for key allies such as Belarus, Russian loans remain critically important.
Export Projects and Strategic Interests
The increase in countries' debt to Russia is due to a targeted lending policy that serves both economic and geopolitical purposes. 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 Rooppur NPP, which explains the rapid growth of its debt by nearly 19% over the year. Similarly, Egypt is ramping up borrowing for the El Dabaa NPP project and other infrastructure, leading to a 24% increase in its debt in 2024. Such projects provide Russian companies (particularly Rosatom) with substantial export contracts and long-term market presence in partner countries.
Another driver is credit for purchasing Russian products, primarily weapons. India—a traditional buyer of Russian arms—has increased its debt by nearly $800 million over the past year, likely as part of payments for the delivery of air defense systems and other equipment on an installment basis. Likewise, Vietnam and Egypt have received government export credits for military equipment in previous years. In this way, by lending to foreign clients, Moscow supports exports of its high-tech goods and strengthens defense and technical cooperation.
Financial Risks and Investment Aspects
For Russia, providing loans to other countries is a form of investment, albeit one fraught with risks. Loans are typically issued on preferential terms: for instance, loans for nuclear power plants have long grace periods and relatively low-interest rates. This helps partners service their debt but means moderate returns for the lender. Nonetheless, such loans are tied to future fuel supplies, maintenance of equipment, and other ancillary services, which create long-term profit sources for Russian companies.
However, the risks of non-repayment persist. Some of Russia's borrowers are experiencing debt burdens and economic difficulties. For example, Egypt is facing a currency deficit, and Belarus' economy largely depends on Moscow's support. In the event of defaults or the need for restructuring, the Russian budget would have to absorb the costs, as has already happened with the debts of several countries. While the total volume of such assets ($33 billion) is not critical for the Russian economy (less than 2% of GDP), it is noticeably increasing. Investors need to consider that the increase in external loans is part of Russia's strategy to enhance its influence, which comes with the cost of frozen capital and potential losses in the event of adverse developments.
Outlook: Further Growth of the Credit Portfolio
Judging by the budget plans, Russia does not intend to reduce the volumes of external lending. For the years 2026–2028, the federal budget allocates around 1.8 trillion rubles (approximately $18.5 billion) for providing government and export credits to foreign countries—this is 14% more than previously planned. These resources will primarily be directed towards “friendly” countries for financing infrastructure projects, supplying equipment, and other needs.
If all planned loans are realized, the total debt to Russia could set historical highs in the coming years, exceeding levels from the late 1990s. This will strengthen Moscow's presence in the economies of its partners but will also increase potential repayment risks. 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 creditors like Russia and China. For borrowing countries, Russian funds become an alternative source of development, while for Moscow, they serve as a tool of “soft power” and the expansion of economic influence.
