President Vladimir Putin
© Sputnik/ Mikhail Klementyev
President Vladimir Putin has ratified a law to write off Mongolia's $174-million debt to Russia, according to a document published on the official Russian website for legal information on Sunday.

The bill was signed in Moscow in December 2010 and took six years to go through all stages of pre-legislative scrutiny.

Mongolia's outstanding debt to Russia was a major hurdle for deeper investment cooperation between the two nations.

Russian companies seek to increase their presence in Mongolia's construction and mineral production markets. The July 2010 deal between Moscow and Ulaanbaatar cleared the way for Russian business and guaranteed $3.8 million as a one-off repayment from Mongolia.