Russia has agreed in principle to forgive as much as 80 percent of the eight billion dollars owed to it by North Korea.

Russian diplomatic sources say that the two countries' vice finance ministers reached the decision in talks last month. Details on the amount of the write-off and repayment for the remainder are still being discussed and will be decided before bilateral economic talks in March.

The sources say Moscow's agreement to forgive the debt could be a move to lure Pyongyang to the six-way nuclear dialogue and trilateral economic talks with Seoul. Russia had earlier refused economic exchanges until North Korea repaid its debt.

Moscow will soon appoint its former Ambassador to Japan Alexander Losyukov as its new chief delegate to the six-way talks. Losyukov is no stranger to the North, as he had previously served as a presidential envoy in talks with North Korean leader Kim Jong-il when Pyongyang dropped out of the Nuclear Non-Proliferation Treaty in 2003.