CRO ECONOMY MINISTER HELD TALKS WITH RUSSIAN COUNTERPART

MOSCOW, Nov. 3 (Hina) - Croatian Economy Minister Nenad Porges held talks on Tuesday with his Russian counterpart Andrey Shapovalansky. After the closed meeting the two ministers described the agreement on solving Russia's clearing debts during the period of the former Yugoslavia as the most important issue. Porges told reporters that Russia's indisputable total clearing debt to all states of the former Yugoslavia amounts to about US$1.5 billion. The first phase would consist of solving 50 per cent of the debt, according to the criteria of the International Monetary Fund (IMF), in other words Croatia's share would be 28.49 per cent. Talks also focused on the modes of payment, such as Russia's distribution of gas or other methods of payment, announced Porges. He stressed that Croatia had previously suggested such a solution. The ministers also tackled Croatian President's Franjo Tudjman's visit to the Russian Federation which, as announced, could occur in the latter half of December. The meeting also focused on the work of the joint Croatian and Russian commission for trade, economy, science and technical cooperation. The Russian Minister stressed that progress has been achieved in economic relations between the two countries during the past two years. Agreements which Croatian companies such as the Croatian oil company INA, signed with Russian companies show the achievement of projects between Croatia and Russia. Porges assessed that the talks resulted in mutual understanding. The Croatian side stressed the firm support of the Croatian government to provide encouragement to business enterprises on the enormous Russian market which provides many opportunities and challenges, despite the current economic crisis in Russia. (Hina) ab/lml