AIIB and New Development Bank Have Been Added to List.from Prior Approval
Government Directive No. 119-r of 3 February 2012 approves the list of international financial organisations including the category International Financial Organisations Established in Accordance with International Agreements to which the Russian Federation is Party (hereafter referred to as the List).
Two new banks have been added to the approved List:
- The Asian Infrastructure Development Bank, established by agreement between 57 countries and ratified in accordance with Federal Law No. 360-FZ of 14 December 2015 (the bank’s biggest stakeholders are China, India and Russia, which hold respectively stakes of 29.78, 8.37, and 6.54 percent in the bank’s charter capital);
- The New Development Bank, established on the basis of an agreement between Brazil, Russia, India, China and South Africa (the BRICS countries), and ratified in accordance with Federal Law No. 29-FZ of 8 March 2015.
Each of these banks has approved issue capital of $100 billion.
A number of international financial organisations (the European Bank for Reconstruction and Development, for example), have halted operations in Russia. The Asian Infrastructure Investment Bank and the New Development Bank will benefit from favourable conditions as they carry out major infrastructure projects, in particular in Eastern Siberia and the Russian Far East.