Russian President Vladimir Putin visited Libya on Wednesday with the intention of rebuilding the ties with the ex-Soviet member. It was Putin’s first visit in the African country and the talks with his Libyan counterpart Moammar Gadhafi were quite successful.

One of the main issues, a $4.6 billion debt from the Soviet era, has been settled. Tripoli will pay back the debt according to Russia's RIA-Novosti news agency.

However, the future Russian investment in the North African country will cover the outstanding debt, said Libyan Foreign Minister Abdel-Rahman Shalqam according to The Associated Press.

"The matter of the debt has been settled conclusively. It is a thing of the past now," said Shalqam.

After the two heads of state finished talking, things got into motion. Russian Railways head Alexander Yakunin, a member of Putin’s delegation to Libya, and a Libyan official signed a deal which stipulates that the Russian Railways (state-owned) will build a line linking the cities of Sirte and Benghazi. The contract was signed Thursday and it’s worth 2.2 billion euro ($3.48 billion), Reuters reported.

The line will take four years to build and will involve local contractors, officials said.

The head of Russia's state-controlled gas monopoly Gazprom, another high ranking executive which accompanied Putin in Libya, has reportedly said that the company he runs is interested in developing some projects in the African country.

Putin’s main reason to re-establish Russian-Libyan ties is the fact that the African country has improved its ties with the West, especially after the Libyan president announced in 2003 that his country was dismantling his nuclear weapons program.