afrol News, 18 April - Russia has written off US $4.5 billion debt owed to Libya in exchange for contracts for Russian companies worth several billions of dollars.

The debt cancellation - announced in the Libyan capital Tripoli on Thursday - forms part of an intergovernmental agreement on bilateral economic and financial relations signed by the Russian President Vladimir Putin and Libyan leader Muammar al-Qaddafi.

The outgoing Russian leader said both countries are "satisfied with the way we have resolved this problem." He was convinced that the new scheme "will benefit the economies of Russia and Libya" as well as their people.

President Putin said Russian companies have reached more than ten agreements with Libyan, including a contract for rail monopoly Russian Railways woth over US $2 billion.

Also Russia's natural gas giant Gazprom and Libya's National Oil Corporation signed a deal to set up a joint venture to engage in upstream and downstream oil and gas operations.

Mr Putin's two-day visit in Tripoli also led to the signing of a military cooperation between Libya and Russia. And as such, the two countries signed a US $2.5 billion arms deal.

The Russian leader left for Italy to meet the country's President-elect Silvio Berlusconi.

By staff writer

© afrol News

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