Report: Japan’s JBIC to lend $38.5 mln to Russia’s Sberbank soon

TOKYO, Oct 24 (PRIME) -- State-owned Japan Bank for International Cooperation (JBIC) will provide a U.S. $38.5 million yen-denominated loan to Russia’s biggest lender Sberbank by the end of 2016, newswire Nikkei reported on October 22, citing government sources.

Sberbank will use the funds to give a loan to the operator of Russia’s Vostochny Port to finance equipment purchases.

"Japanese banks are avoiding dealing with (Russia) because they're worried about getting on the U.S. bad side," the source said. But according to the source, JBIC wants to break this trend in order to melt the ice in the negotiations with Moscow over the southernmost Kuril Islands, the source said.

“The loan is part of an eight-point economic cooperation plan presented to Russian President Vladimir Putin by Japanese Prime Minister Shinzo Abe in May as part of a "new approach" to the dispute,” the source said.

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