Major urges realism on G7 loans to Russia
Sunday 05 July 1992
After a meeting in London between officials of the European Community and Japan, the Prime Minister said it was vital 'that the terms are not so severe that they are politically undeliverable in Russia'. The issue will be discussed at a meeting of the world's seven largest industrialised countries this week in Munich, but there are signs of growing dissension over the terms.
Mr Yeltsin, speaking in Moscow yesterday ahead of talks with the Group of Seven leaders, showed irritation over Western demands attached to promised new loans totalling dollars 24bn ( pounds 12.5bn). He insisted he would not be forced into making political or economic concessions: 'This is a normal credit and you cannot force us to our knees. Russia is a great country. It will not permit such a thing.' He also said he wanted a two-year moratorium on interest payments on the foreign debt of the former Soviet Union, now estimated at dollars 74bn.
As well as the West's demands that aid be tied to economic reform, Japan continues to insist on a resolution of the long-running dispute over the Kurile Islands, which Russia has occupied since the Second World War. Mr Yeltsin said on Friday there could be no political deals until Japan showed a willingness to co-operate on economic aid. The Japanese Prime Minister, Kiichi Miyazawa, noted yesterday that Japan already provided dollars 2.65bn aid to Russia. 'If President Yeltsin does not know of this, there must be something very strange,' he said.
Russian calls for assistance come at a time when the world's wealthiest countries are feeling the effects of economic slowdown, and this theme will dominate the Munich meeting. Mr Major said he hoped world trade talks could be given a boost, and that a successful resolution was vital for the world economy. He said this at last year's G7 summit as well.
- 1 Fifty Shades of Grey trailer: First look at Jamie Dornan as Christian Grey
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 4 Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
£21804 - £31868 per annum: Randstad Education Chelmsford: Are you a dynamic En...
competitive: Progressive Recruitment: Experienced Lead SAP Data Manager Requir...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
£18000 - £25000 per annum + OTE £40,000: SThree: Huxley Associates are looking...