Kabul, Moscow and Paris Club

Dr. G. Rauf Roashan

According to a recent report, Russian Finance Minister Alexei Kudrin raised the debt repayment question with his Afghan counterpart Dr Anwarul Haq Ahady during his official visit to Russia on August 17. Kudrin dropped a broad hint at Russia taking the issue to Paris Club for arbitration.

At stake is a huge figure of $ 10 billion Russia claims Afghanistan owes it from loans she received, for the most part during the years Kremlin’s puppet regime was in power. 70 % of this money, according to Russia was given in the form of fighter planes, other heavy weaponry, spare parts and services of the Russian military experts. The other 30 % remains unexplained and probably consists of civilian program aid for propagation of the regime’s proletariat objectives, the cost of Soviet regime experts serving the cause of communism in Afghanistan and reeducation of officials and the general public to become functionaries of the regime.

This column has in the past written several articles on the issue and has raised more than once the question of the need of looking at the other side of the coin. The other side of the coin shows that it was due to the Soviet schemes and its dream of expansionism that inflicted misery and injury to the country and its residents when Kremlin decided to install a puppet regime in Afghanistan. Soviet Union wanted to use the regime as a steppingstone for its own centuries old aspiration to reaching the warm waters of the Indian Ocean and to finding of a pathway to the subcontinent, a prize of the great game era.

It is doubtful if any record in the archives of the Afghan government exists to show a detailed breakdown of any help or loan by the Soviet Union or how the loan has been spent. Yet Russians may be able to produce documents worked out in Russia about the so-called debt. The Soviet system used its satellite protectorates as its own and kept all records of transactions including commercial dealings on its own soil. One example is the meters showing export of natural gas from Afghanistan, which were installed on the Soviet side of the border.

Earlier in the life of the transitional government in Afghanistan the United States Secretary of the Treasury at a meeting with his Russian counterpart had mentioned the need for extending of financial help to the new democratic Afghanistan. In response and to evade any positive commitment, the Russian side had pointed to the money Afghanistan owed Russia, suggesting that after the issue was cleared Russia would take part in the international drive to help in the reconstruction of Afghanistan.

Presently many Afghan watchers are puzzled over the fact that knowing the tactics of the Russian government, why would the Afghan Minister of Finance make a trip to Moscow at this time. Would it not have been more prudent to study all aspects of a meeting before participating in it? Nevertheless, a “trip-happy” government of Afghanistan did send a delegation for talks to Russia. The delegation has returned, luckily, with a report of inconclusiveness of the subject of Afghan debt, but a suggestion from the Russian finance minister of his government’s intentions to approach the Paris Club for a settlement of the issue.

The Paris Club, an unofficial group is about half a century old. The group meets about every six weeks and is attended by 19 people from the world’s affluent countries. The Club studies issues of repayment of debts with a view of finding solutions mostly to satisfy the lender needs over an extended period of time. Its decisions are not binding, but respected.

Regarding the financial issue between Afghanistan and Russia, especially considering a counter proposal of war reparations Russia owes the people of Afghanistan, the Paris Club will not be an appropriate place. However, now that the Russian government has shown interest in tackling the issue, the International Court of Justice at The Hague seems a more appropriate venue. It is high time that the government of Afghanistan should take the opportunity and take the case there.

To do this, the government on its own or with the help of Afghan intelligentsia abroad, could work on developing a case which would show in solid terms, moral, material and mental damages inflicted on Afghans because of the Soviet invasion of Afghanistan. There is no denying the fact that the complete destruction of the country’s infrastructure, including highways, roads, other communication facilities, industries, agriculture, irrigational canals including subterranean water channels, forests, education and health facilities were all due to starting of a protracted war by the Soviet Union. Couple the aforementioned with the mental suffering of huge masses of population, almost ten millions, who were displaced both inside and outside the country and millions of war casualties plus losses of lives due to hunger, disease and lack of shelter, the war reparation cost will amount to near hundreds of billions of dollars.

It is therefore time that the Afghan government should choose the correct path of taking the case to the International Court of Justice and let the world pass judgment over the issue. However, prior to doing this, it should consult Afghan specialists who have already worked and published their works on a variety of issues related to the damages inflicted on Afghanistan because of the Soviet imposed war and its consequences. 8/26/05



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