Russia risks losing billion project with the World Bank

Russia risks losing billion project with the World Bank

According to Bloomberg, this move has been the G7 finance ministers decided in a closed meeting last week. This would threaten projects worth at least $ 1.5 billion has been projected here. After rounds of sanctions aimed at the banking, energy and defense, this step will be the West’s increasing pressure on the Russian action in Ukraine.

World Bank will encounter difficulty in approving this project, due to the G7 accounted for over 40% of the voting rights in it, Scott Morris – former U.S. Treasury Department said. G7 countries including France, Germany, Italy, UK, USA and Japan.
Russia risks losing billion project with the World Bank

World Bank presidents – Jim Yong Kim wants to keep the agency shun politics. Photo: Bloomberg

International Bank for Reconstruction specialized and Development (IBRD) of the World Bank is responsible for direct government loans. They currently have 9 projects are in the preparation stage in Russia. These projects worth $ 1.34 billion, focused on education and energy.

WB also has 10 ongoing projects worth $ 668 million. However, our newly disbursed nearly half.

As the International Finance Corporation (IFC) – the lending unit of the World Bank private sector is 4 projects worth about $ 154 million here. One of them is a $ 60 million loan with Societe Generale Russia, to support environmentally friendly vehicles.

Bank for Reconstruction and Development in Europe (EBRD) pledged last week to stop the project in Russia, after the majority shareholders expressed opposition.

WB was swept into war economic sanctions from the Russian front. When on 29/5, the agency through partial credit $ 335 million package to help retailers, France – Groupe Auchan expand business in Russia, Vietnam and other developing countries. Canada voted against, while the U.S. and many EU countries abstained.

World Bank president – Jim Yong Kim is trying to keep the agency away from the war, while claiming they have a good relationship with both Ukraine and Russia. “We’re still focused support and advice for both countries in poverty. Important thing right now is that the world has a political organization to stand outside and just focus on economy alone,” he said in an interview last week in India.

Russia risks losing billion project with the World Bank
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