Moscow warned against debt default

The Paris Club of creditor nations has warned Russia against defaulting on its debts, following Moscow's announcement that it intended to withhold repayment of this year's first instalment.

A statement by the Paris Club said it did not condone any debtor's unilateral default, and given Russia's favourable economic situation, it was expected to honour all its debt servicing.

The Russian president, Vladimir Putin, has promised to repay all forty-eight-billion dollars of the former Soviet Union's debt, but has appealed for the repayments to be restructured.

The Russian economy is seen to be doing well at the moment because of the high price of oil, one of Russia's main exports. Correspondents say the Russian position on its foreign debt appears to be a negotiating tactic ahead of talks with the International Monetary Fund due to begin in the coming weeks.

From the newsroom of the BBC World Service