Russia’s role in the EBRD decreases

According to the Eurasian Bank for Reconstruction and Development (EBRD), Russia’s stake in the bank has decreased from 65.98% to 44.79%, which means that the country no longer possesses a controlling stake in the EBRD.

The bank is going to distribute this 21.2% stake Russia used to own (321,151 shares) between other members of the bank. As a result, these shares will go to the following: Kazakhstan – 37.29%, Armenia – 4.23%, Kyrgyzstan – 4.23%, Belarus – 5.21% and Tajikistan – 4.25%.

This decision was made by the EBRD council on December 30, 2022, although this issue was discussed this summer.

On August 10, various media reported that Kazakhstan could be the largest EBRD stakeholder. According to Bloomberg, Russia was planning to get rid of the controlling stake to diminish risks for the bank.

Later in August, this information was officially confirmed by Erulan Zhamaubayev. At the time, he said that the member states had to say if they were ready to buy the Russian stake.

In December 2022, Nikolay Podguzov, the board chairman of the EBRD, said that the configuration of the bank’s stakeholders was going to change.

«In the weeks to come, we will see the new shareholder’s structure, I believe. As a part of this process I can say that negotiations are under way,» he said at the time.

As of June 30, 2022, the EBRD provided funds for 89 projects in Kazakhstan ($4.047 billion), 83 projects in Russia ($5.344 billion), 20 projects in Armenia ($419 million), 40 projects in Belarus ($2.2 billion), nine projects in Kyrgyzstan ($113 million) and six projects in Tajikistan ($51 million).

The Eurasian Bank for Reconstruction and Development with a registered capital of $7 billion was established to finance infrastructural projects in the member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.