Russia has agreed to recategorize the $1.5 billion Cambodian debt as an investment and pledged to provide aid to Cambodia next year.
The announcement was made after the meeting between Prime Minister Hun Sen and Russian Prime Minister Dmitry Medvedev in Brussels on Thursday, Oct.18.
Hun Sen asked Russia to convert the debt into an investment into Cambodia.
Mr Medvedev said that Russia has an interest in helping Cambodia, will treat the debt as an investment and provide further aid to Cambodia in 2019.
He also told the premier that Russia will help to improve the Khmer-Soviet Friendship Hospital. It also plans to help mending many ancient temples in Cambodia as Russian tourists are strongly interested on visiting them.
In the meeting both sides vowed to enhance cooperation on economic, trade, investment, security and counter-terrorism matters.
Russian News Agency TASS will open an office in Cambodia soon, which will enhance cooperation in the media sector.