Eurasian Development Bank
Encyclopedia
Eurasian Development Bank (EDB) is an international financial organization founded by the Russian Federation and the Republic of Kazakhstan in 2006.

Mission

The Bank's mission is to facilitate the development of market economies
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

, economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

 and the expansion of trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...

 and other economic ties in its member states by carrying out investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...

 activities.

The Bank strives to become a consolidating element within the financial infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...

 and a catalyst for the expansion of integration
Regional integration
Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules...

 processes among member states.

The strategic objectives of the EDB are:
  • to foster sustainable economic development of its member states;
  • to promote integration processes;
  • to develop infrastructural and institutional fundamentals of market economies;
  • to complete the establishment of the Bank as a reputed international development
    International development
    International development or global development is a concept that lacks a universally accepted definition, but it is most used in a holistic and multi-disciplinary context of human development — the development of greater quality of life for humans...

     bank with a focus on Eurasian integration.

The EDB member states are Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

, Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

, Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

, Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

 and Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...

. Other states and international organisations may become members by joining the Agreement Establishing the EDB.
The EDB charter capital in exceeds US$1.5 billion, it is formed of contributions by its member states: Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

 (US$1 billion), Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

 (US$500 million), Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

 (US$100,000), Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

 (US500,000) and Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...

 (US15 million). The charter capital may be increased by resolution of the Bank’s Council.

The Bank has the status of an international organization, and is subject to international law
International law
Public international law concerns the structure and conduct of sovereign states; analogous entities, such as the Holy See; and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond...

. As such, the Bank:
  • has international legal standing;
  • enjoys the rights of a legal entity in its member states;
  • has a special legal status granting certain preferences and privileges within its member states;
  • has the status of a preferred creditor.


The Bank’s headquarters is located in Almaty
Almaty
Almaty , also known by its former names Verny and Alma-Ata , is the former capital of Kazakhstan and the nation's largest city, with a population of 1,348,500...

.
The Bank has a branch in St. Petersburg and representative offices in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...

, Astana
Astana
Astana , formerly known as Akmola , Tselinograd and Akmolinsk , is the capital and second largest city of Kazakhstan, with an officially estimated population of 708,794 as of 1 August 2010...

, Dushanbe
Dushanbe
-Economy:Coal, lead, and arsenic are mined nearby in the cities of Nurek and Kulob allowing for the industrialization of Dushanbe. The Nurek Dam, the world's highest as of 2008, generates 95% of Tajikistan's electricity, and another dam, the Roghun Dam, is planned on the Vakhsh River...

, Yerevan
Yerevan
Yerevan is the capital and largest city of Armenia and one of the world's oldest continuously-inhabited cities. Situated along the Hrazdan River, Yerevan is the administrative, cultural, and industrial center of the country...

 and Minsk
Minsk
- Ecological situation :The ecological situation is monitored by Republican Center of Radioactive and Environmental Control .During 2003–2008 the overall weight of contaminants increased from 186,000 to 247,400 tons. The change of gas as industrial fuel to mazut for financial reasons has worsened...

.
The Bank has observer status in the UN General Assembly (since 2007) and EurAsEC (since 2008).

History

The Eurasian Development Bank was founded on the initiative of Presidents of the Russian Federation and the Republic of Kazakhstan. An inter-state agreement to that effect was signed on 12 January 2006 during the official visit of President of Russia Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...

 to Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

.
The Bank formally commenced its activity in June 2006 following the enactment of laws on ratification of that agreement by the Presidents of Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

 and Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

 and the first meeting of its Council.

Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

 and Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

 joined the Bank in 2009 and Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...

 in June 2010.

Activity

The Bank’s priority investment sectors and projects are:
  • Electric power
    Electric power
    Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

    ;
  • Transport infrastructure;
  • Agroindustrial complex;
  • High-tech and innovative sectors;
  • Investment projects implemented via public-private partnerships


Projects financed by the Bank provide for the infrastructural development and diversification of economies and boost mutual trade and investments in the member states.

As a rule, the payback period of the Bank’s projects does not exceed 15 years and the Bank’s commitment is at least $30 million.

As of 31 December 2010, the investment portfolio of the Bank amounted to US$2,209 billion. The Bank was actively considering 37 investment projects at the time. The total volume of projects in the pipeline is in the range of USD13.575 billion, of which EDB’s estimated share is USD2.967 billion.

Example current projects, below, and others by the Bank are being implemented in various sectors in member states:
  • construction of the third power generating unit and modernization of existing facilities at Ekibastuz Power Plant-2 in Kazakhstan
    Kazakhstan
    Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

    ;
  • construction of hydroelectric power station in Belarus
    Belarus
    Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...

    ;
  • creation of the first Russia’s large-scale venture producing polycrystalline silicon;
  • reconstruction and development of the Pulkovo airport in St.- Petersburg;
  • mass production of the new model of Sukhoi Super Jet 100 regional passenger planes;
  • construction of a wagon works in Tikhvin, Russia
    Russia
    Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

    ;
  • purchasing of BelAZ lorries for the coal open pit mines operated by the Siberian Coal Energy Company (SCEC) in Russia
    Russia
    Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

    ;
  • and also purchasing of farm machinery for Kazakh grain producers, development of sea cargo transport in the North Caspian, utilization and processing of associated gas at oil fields, launching full-cycle tin production in Kazakhstan
    Kazakhstan
    Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

     and others.

In 2010 the Bank launched three programs supporting finance sectors of its member states- the program on support and development of SMEs, the program on support of microfinance, and the program on development of trade finance instruments and promotion of mutual trade between its member states by providing target loan facilities to financial institutions.
Investment projects already implemented by the Bank:
  • construction of an ore mining and processing works at the Voskhod chromite deposit in Kazakhstan
    Kazakhstan
    Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

    ;
  • industrial development of the Zarechnoye uranium deposit Kazakhstan
    Kazakhstan
    Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

    ;
  • construction of the MDF boards plant in Tomsk Oblast (Russia);
  • construction of a modern spinning mill in Tajikistan
    Tajikistan
    Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

    .


In June 2009 member states of the EurAsEC Anti-Crisis Fund (ACF) appointed EDB manager of the ACF and signed a respective agreement with the Bank.
The EurAsEC Anti-Crisis Fund of USD8.513 billion was established by governments of six countries- Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

, Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...

, Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

, Kyrgyz Republic, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

 and Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

.

ACF’s main goals are to assist member countries in overcoming the consequences of global financial crisis, to ensure their long-run economic and financial stability and to foster economic integration in the region (for more information, please visit http://acf.eabr.org/eng)

The Bank has credit ratings assigned by Standard & Poor's (ВВВ), Fitch Ratings (ВВВ) and Moody's Investors Service (А3).

The Bank provides financial support for pre-investment and innovation studies aimed at promoting Eurasian integration, strengthening market infrastructure and sustainable economic growth in its member states. For these purposes, the Bank established a Technical Assistance Fund.

The Bank conducts research the focus of which is Eurasian integration. On a regular basis EDB, holds conferences featuring integration issues. The Bank also publishes a quarterly Journal of Eurasian Integration, an annual almanac the Eurasian Integration Yearbook, industry and country reviews, news digests on regional integration and the activity of international development banks.
The Bank also provides information and consulting services, including analysis of selected sectors and financial markets in its member states and other EurAsEC countries, and economic and legal analysis of integration agreements and structures and the activities of development banks in the CIS.

Management

The managing bodies of the Bank are the Council, the Executive Board and the Chairman of the Executive Board.

The members of the Bank’s Council are:
from Russia: Alexei Kudrin
Alexei Kudrin
Alexei Leonidovich Kudrin was the Minister of Finance and Deputy Prime Minister of Russia from 18 May 2000 to 26 September 2011. After graduating with degrees in finance and economics, Kudrin worked in the administration of Saint Petersburg's liberal Mayor Anatoly Sobchak. In 1996 he started...

, Deputy Prime Minister of the Russian Federation- Minister of Finance of the Russian Federation, Andrey Dementyev, Deputy Minister of Industry and Trade of the Russian Federation;

from Kazakhstan: Bolat Zhamishev, Minister of Finance of the Republic of Kazakhstan , Albert Rau, First Vice Minister of Industry and New Technologies of the Republic of Kazakhstan

from Armenia: Armen Movsisyan
Armen Movsisyan
Armen Movsisyan is the current Minister of Energy and Natural Resources of Armenia.-References:...

, Minister of Energy and Natural Resources of the Republic of Armenia , Iosif Isayan, Deputy Minister of Energy and Natural Resources of the Republic of Armenia;

from Tajikistan: Safarali Nadjimiddinov, Minister of Finance of the Republic of Tajikistan, Amondjon Eshonkulov, First Deputy of the Chairman of the State Committee on Investments and Management of State Property of the Republic of Tajikistan.

from Belarus: Sergey Rumas, Deputy Prime Minister of the Republic of Belarus, Nickolai Snopkov, Minister of Economics of the Republic of Belarus

The Chairman of the EDB's Executive Board is Igor Finogenov.
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