BRICS bank NDB looks to find ways to fulfil its Russia obligations

The New Development Bank, the multilateral bank set up by the BRICS states, is trying to think about ways it can fulfil its obligations to founding member Russia after it had to stop funding projects there to comply with sanctions.

Days after Russia invaded Ukraine, the NDB announced it would stop funding new projects in Russia to assure investors it was complying with western-led sanctions against Moscow. It also scrambled to win confidence from investors worried about its shareholding structure.

But the bank still has obligations to founding member Russia, which has continued to make payments to the NDB throughout the crisis, Vladimir Kazbekov, an NDB vice-president and chief operating officer, said. “Russia plays a significant role in the decision making process and given its special role as a founding member, NDB intends to think about fulfilling its obligations vis-a-vis, in compliance with applicable restrictions introduced on financial capital,” he told at annual meeting.