Ram rules!

An interesting article I found on the internet –

Indian mobile network operator Sistema Shyam TeleServices (MTS India) has been valued at USD3.5 billion by an independent appraiser, according to Reuters. The valuation of the operator comes on the back of the Russian government’s decision to acquire a 20% stake in it, which on the back of the valuation will cost the state approximately USD700 million; in its 2009 budget Russia set aside RUB23.7 billion (USD707 million) for the purchase. It is understood that the Russian government will look to acquire the stake from Sistema Shyam’s majority owner, Russia-based Sistema, which holds a 73.71% stake in the joint venture; India’s Shyam Group has a 23.79% stake in the cellco; the remaining 2.5% is publically held.

Previously indications have been that, should the sale go ahead, it may be used by Russia as part of a plan to settle New Delhi’s outstanding Soviet-era debt to Moscow. As a result of India’s significant debts to Russia, stemming from purchases made prior to the collapse of the Soviet Union, the two governments have agreed that Russia can utilise this rupee debt to finance its investments and joint venture projects in India.

This one got me wondering on how the “debt” system between nations works. Is it as simple as the ones we do daily, only on a larger scale?