Russia leads as Eurasian Economic Union debt surges across bloc

The combined external debt of Eurasian Economic Union (EAEU) member states surpassed $2.5 trillion as of October 1, 2025, underscoring both the scale and diversity of borrowing within the bloc.

The Eurasian Economic Commission notes that, Russia continues to hold the largest share of external liabilities, followed by Kazakhstan and Belarus. Kyrgyzstan and Armenia maintain the lowest absolute debt levels, though their borrowing has grown at comparatively faster rates, Caliber.Az reports, citing local media.

External debt by country (as of October 1, 2025):

Russia: $308 billion

Kazakhstan: $171 billion

Belarus: $37 billion

Armenia: $18 billion

Kyrgyzstan: $12.8 billion (up 10.1% year-on-year)

Kyrgyzstan ranks among the fastest-growing debt economies in the union, with the bulk of its liabilities concentrated in the public sector—$5.2 billion—highlighting the central role of budgetary borrowing in financing the national economy.

Overall, the debt structure of EAEU member states remains predominantly long-term, with 85% of obligations maturing in over one year, thereby mitigating short-term balance-of-payments risks.

Debt composition varies markedly across the union. In Armenia, Belarus, and Kyrgyzstan, government obligations dominate, whereas in Kazakhstan, direct investments—including intercompany lending—form the majority of external liabilities. In Russia, a significant portion of debt resides in other sectors of the economy, primarily large corporations.

Long-term trends also differ across member states. Since 2010, Armenia’s external debt has increased 2.8-fold, Kyrgyzstan’s 2.6-fold, Kazakhstan’s 1.4-fold, and Belarus’ 1.3-fold. In contrast, Russia has steadily reduced its external debt since 2014, which as of October 1, 2025, stands at 63.1% of its 2010 level.

Financial stability in the union is largely measured by the coverage of external debt through international reserves. Russia leads significantly, with reserves exceeding its external debt by more than double (231.5%). By comparison, other EAEU countries display lower coverage ratios, ranging from 24.1% in Armenia to 58.3% in Kyrgyzstan.

Nonetheless, according to the Eurasian Economic Commission, reserve coverage of external debt has risen in all member states compared with the previous year, reflecting a general improvement in macro-financial positions across the union.

By Vafa Guliyeva