"We expect the agreement [to erase Yemen's debt to Moscow] to be signed sometime this year," the official said.

The deal was said to have been reached during the visit to Moscow by Yemeni President Ali Abdullah Saleh in late February. Officials said Saleh offered Russia base rights and a stake in Yemen's energy sector in exchange for advanced weapons and training. Days later, Yemen was said to have signed a $1 billion deal for the MiG-31 and MiG-29 fighter-jets.

"There are plans to establish a Russian military base on the Yemeni island of Socotra," the official said.

Under the agreement, Yemen would be allowed to order $4 billion worth of equipment and services from Moscow. Officials said about $2.6 billion would be allocated toward the procurement of Russian combat jets and other military platforms.

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