The countries of the Eurasian Economic Union form external debt in different ways

As of 1 July, the structure of external debt of the member states of the Eurasian Economic Union varied significantly. In Armenia, Belarus and Kyrgyzstan, the bulk of the debt was owed by government agencies.

In Kyrgyzstan, this figure was 41%, in Belarus – 46%, and in Armenia – 36% of the total external debt.

Kazakhstan has a different structure. More than half of the debt (about 54%) is accounted for by intercompany lending through foreign direct investment. This indicates a high share of liabilities between related companies within transnational corporations.

In Russia, other sectors of the economy remain the main source of external debt, accounting for 42%, while government agencies account for 33%.

The differences in the structure of debt reflect the characteristics of the financial systems of the EAEU countries: for some, government borrowing remains key, while for others, corporate capital or direct investment is key.

We would like to add that as of 1 July, the external debt of the EAEU countries reached $561.9 billion, of which $320.8 billion is Russia's debt. The remainder is distributed as follows:

• Armenia — $17.9 billion;
• Belarus — $37.7 billion;
• Kazakhstan — $172.8 billion;
• Kyrgyzstan — $12.7 billion.