EBRD Moves Forward with Action Against Russia and Belarus
The Board of Directors of the European Bank for Reconstruction and Development has agreed with a management proposal to take steps in responding to the Russian-led invasion in Ukraine. They voted in large numbers to ask Governors to approve firm action against both Russia and Belarus. If approved by the Governors, the access of Russia and Belarus to EBRD finance and expertise would be suspended open-endedly.
Governors will have thirty days to vote on this resolution under Article 8.3 of the Articles Establishing the Bank, the constitution of the EBRD, which makes provision for the suspension of access by a member to Bank resources in ‘exceptional circumstances’. To pass the resolution under Article 8.3 requires the support of a majority of not less than two thirds of the Governors, representing not less than three fourths of the total voting power of members.
Separately, the EBRD is also exploring, in cooperation with our partners, an emergency financing package for the region. Included could be liquidity support for the private and public sector, and municipalities affected by an influx of refugees. It would be a tangible symbol of support for Ukraine and other Countries of Operations caught up in the crisis.
The Bank has made clear its condemnation of the invasion and its unwavering support for Ukraine.
The European Bank for Reconstruction and Development (EBRD) was founded in 1991 to create a new post-Cold War era in central and eastern Europe. EBRD is now doing more than ever before – across three continents – to further progress towards ‘market-oriented economies and the promotion of private and entrepreneurial initiative’.
Russia and the EBRD
The EBRD remains present in Russia to support existing projects and their clients. The Bank’s operational approach, following guidance from a majority of Directors, is currently not to undertake any new business in the country.
Russia at a glance
- 788 projects in Russia to date
- €24,301 million of cumulative EBRD investment
- 86% private sector share of portfolio
- €939 million current portfolio of projects
