The agreement will be signed by Croatian Finance Minister Ivan Suker and Assistant Russian Finance Minister Sergei Starcok, the source said.
Russian business daily Kommersant said last week that Russia and Croatia would sign the clearing debt agreement at the end of this month.
The majority of the debt, USD105 million, will be cleared through the building of a new 230 megawatt energy bloc for the thermal power plant in Sisak and the contractor will be Russian company Tehnopromexport, the daily said, adding the rest of the debt would be cleared via the delivery of helicopters.
The clearance of the debt also envisages the construction of a section of a gas pipeline on the Croatian-Hungarian border, Croatian sources said.