Russia to discuss EBRD return with board of governors in May

MOSCOW, Jan 16 (PRIME) -- Russia plans to discuss a return of full-scale activities of the European Bank for Reconstruction and Development (EBRD) at a meeting of the bank’s board of governors in May, Andrei Bokaryev, head of the Finance Ministry’s international financial relations department, told PRIME on January 14.

After the introduction of Western sanctions against Russia in 2014, the bulk of its shareholders recommended that EBRD abstain from new projects in Russia. The bank continues financing of the current projects.

“Saying that there are negotiations with the EBRD (on restoration of full-scale operations) is an overstatement. The situation now is in the same state as it was several months ago. Russia plans to include this question on the agenda of the upcoming meeting of the board of governors, which will take place in May 2017,” Bokaryev said.

Russia has already discussed the issue with bank management, he said.

He said that the bank is an international organization and has an array of privileges and immunities meaning it may ignore court decisions.

“So, if the bank itself does not decide on the managerial level to lift this or that immunity, it is nearly impossible to involve the bank in a court process,” he said.

The share of Russian projects in the combined portfolio of the EBRD fell to 12% in 2016 from 30–33% in “best years of cooperation”, and in 2017 it may fall to 8–9%. “But it is worth noting that despite the contraction of the share, this 12% of projects in Russia accounted for more than 35% of the bank’s total operating profit last year,” he said.

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