The New Development Bank, an initiative of the Brazil, Russia, China, India and South Africa group, has put a hold on new transactions with Russia.
It made the announcement in a terse statement that avoided any reference to sanctions or to the conflict in Ukraine.
The statement read: ‘The New Development Bank (NDB) applies sound banking principles in all its operations, as stated in its Articles of Agreement.
‘In light of unfolding uncertainties and restrictions, NDB has put new transactions in Russia on hold.
‘NDB will continue to conduct business in full conformity with the highest compliance standards as an international institution.’
Russia has financed projects through the bank of some $4.86 billion. These have been implemented or approved and will not be affected by this decision.
The NDB was intended to provide an alternative avenue of funding to hitherto existing international financial institutions, which were regarded as unduly under the sway of Western interests, and insensitive to the concerns of others.
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