Asian Infrastructure Investment Bank
Russia united with several countries in the Asian
Infrastructure Investment Bank (AIIB) Board of Directors for voices
distribution. “Russia is not the only country that has done it,” — noted
Minister of Economic Development of Russia Alexey Ulyukaev appointed as a
Governor from Russia in AIIB. “It is a normal practice. The countries are united
into groups. The same thing is in the World Bank and in the EBRD when our
country is united with others.”
According to the Minister not all the states have completed domestic procedures.
That is why the group in which Russia is included has not been created yet
formally. Nevertheless, four states are ready to join it: besides Russia
Kazakhstan, Iran and Tajikistan. “This group will consolidate the second largest
package, about 13% that will allow the group to influence management decisions
since the basic decision is taken according to the amount of shares controlled,”
noted Russian Minister.
He believes that AIIB will begin to consider the first applications in the
second quarter. “The management assured us that all organizational procedures
would be completed in the first quarter and AIIB would be ready to consider
projects,” Alexey Ulyukaev said.
However he thinks that it is early to talk about funding any Russian projects.
“But it is obviously that it will be infrastructural projects connected with
highway and railway construction. We would like to work with the projects that
we, China and EEU are interested in,” explained Minister of Economic Development
According to his words the specialists are working at combining two integration
projects: EEU and Silk Road Economic Belt. It is quite reasonable that these
infrastructural projects will be considered.
Besides this entails energy facilities of Russian Far East and Siberia. “By the
time the Bank begins to consider the projects we shall have prepared the
package,” said Minister of Economic Development of Russia and noted that our
country had all opportunities to be among the first ones that would begin
working with AIIB. However in Alexey Ulyukaev’s opinion, it is early to talk
about the conditions under which the Bank will provide loans.
Articles of Agreement of setting up Asian Infrastructure Investment Bank
officially came into force on December 25, 2015. Russia has duly completed
ratification procedures related to constituent documents of the Bank that allow
the country to participate in full format in inauguration meetings of AIIB Board
of Governors and the Board of Directors.
Alexey Ulyukaev has drew attention to the fact that the Bank is one of the
sources of infrastructure finance and practical example of cooperation in
Asia-Pacific region. As he said, “it is one of the system decisions that
positively affect renovation of the regional economic infrastructure”.
Founders of Asian Infrastructure Investment Bank are 57 countries; of them 37
are referred to the regional member states and 20 – to the non-regional ones.
Russia became third by size stockholder of AIIB with stake in its capital equal
to 6.54% (after China and India).
Besides, today has took place the official appointment of the Bank’s President
Tsing Lutsun. As said the head of the Ministry of Economic Development of the
Russian Federation, “He is the former Chinese Deputy Minister of Finance;
previously he worked in the World Bank and is well known in financial community.
We hope that he would manage to properly arrange the Bank’s activity”.
During the inauguration meeting discussed were the issues related to the
framework working documents outlining operation of Board of Governors and
election of the Board of Directors. Further on shall be authorized the relevant
internal documents that would allow the Bank to proceed to operation.
As noted Alexey Ulyukaev, “to commence the project work, this organizational
stage is envisaged to be completed within the first quarter”.
He has noted that AIIB shall create the three-level management system including
Board of Governors, Board of Directors and the relevant executive bodies. As he
explained, “the Board of Governors shall be in charge of taking principal
decisions regarding Bank’s development strategy and its charter documents,
whereas the direct authorization of project shall be done by the Board of
Results of voting by candidates to hold positions in the Board of Directors
shall be officially released tomorrow. As Alexey Ulyukaev explained, “I wouldn’t
open a great secret if I say that the Board of Directors shall include one
representative of Russia, i.e. executive of the Russian Ministry of Finance
Timur Maximov. He is nominated to hold position of director from Russia. As
distinguished from the other international organizations such as World Bank and
European Bank of Reconstruction and Development, the director position in AIIB
is not presuming the full employment”.