MOSCOW, November 15. /TASS/. Moscow and Caracas have signed an intergovernmental protocol on restructuring Venezuelan debt to Russia amounting to $3.15 bln, which stipulates full repayment within a ten-year period and minimal payments in first six years, Russia’s Finance Ministry said Wednesday.

The agreement on Russia’s providing a state credit to Venezuela was signed on December 8, 2011.

"On November 15, 2017, Russia’s Finance Ministry informs that an intergovernmental protocol has been signed on structuring of Venezuela’s debt to Russia… The amount of Venezuelan consolidated debt stands at $3.15 bln, the new repayment schedule implies payments within a ten-year period, which will be minimal during the first six years," the report said.

The debt relief provided to Venezuela as a result of debt restructuring will enable Caracas to "allocate released funds on the country’s economic development, improve its repayment ability, and raise the prospect of all creditors to return loans provided earlier to Venezuela," Russia’s Finance Ministry said.

Russia is one of biggest creditors of Venezuela. As reported earlier, the country asked Russia to extend the availability period in 2014 amid challenging economic environment. In 2016, Russia agreed to restructure its debt to Venezuela amounting to $2.84 bln (including default interest, use-of-money interest and loan principal). It was agreed that Venezuela would repay $2.2 bln to Russia starting March 2017, and repay the remaining amount until 2021. However, in June 2017 it was announced that Venezuela broke obligations, which created a 54 bln rubles ($896 mln) shortfall in Russia’s 2017 budget, and the sides launched new talks on debt restructuring.

Moreover, the debt of Venezuelan state-owned PDVSA to Russia’s Rosneft amounts to around $6 bln, which is an advance payment for supplies of oil and petroleum products.