Russia to Gradually Cancel Tajikistan’s $300 Million Energy Debt
Russia and Tajikistan have signed an agreement to gradually write off Tajikistan’s $300 million debt related to electricity supplied by the jointly operated Sangtuda-1 Hydropower Plant. The arrangement was confirmed by a protocol approved by the lower house of Tajikistan’s parliament, according to The Moscow Times. The agreement was signed in late April by Russian Energy Minister Sergey Tsivilev and Tajik Minister of Energy and Water Resources Daler Juma. Under the terms of the agreement, the debt will be cancelled in stages through 2034. Sangtuda-1, a 670-megawatt hydropower facility, accounts for approximately 12% of Tajikistan’s electricity production. Its sole customer is the state-owned energy company Barki Tojik, which has long struggled to meet payment obligations. Through this arrangement, Russia is effectively subsidizing electricity costs for Tajikistani consumers by absorbing the financial shortfall. Part of a Broader Debt Strategy This move is consistent with Russia’s broader approach to economic diplomacy among its allies. Tajikistan is not alone in receiving such relief. Earlier this year, President Vladimir Putin approved a deferral of Belarusian state loan repayments totaling $800 million, now rescheduled for 2031-2036. Russia has previously provided relief in $26.7 million in debt owed by Guinea-Bissau and canceled $691 million in Somali debt. In total, Moscow has forgiven around $20 billion in African debt, much of it tied to Soviet-era military transactions. Closer Financial Ties The debt relief agreement comes amid deepening financial cooperation between Dushanbe and Moscow. According to the National Bank of Tajikistan, more than 90% of bilateral trade is now conducted in Russian rubles, a sharp contrast to 2021, when trade was equally divided between the ruble and the U.S. dollar.
