Russian Government and EDB Signed Agreement on Bank’s Presence in Russia

On 7 October 2008, Viktor Khristenko, Minister of Industry and Trade of Russia, and Igor Finogenov, Chairman of the EDB Executive Board, signed an agreement setting forth the terms of the EDB’s presence in Russia.

The parties have negotiated and executed this document in line with the Agreement Establishing the Eurasian Development Bank of 12 January 2006 between the Russian Federation and the Republic of Kazakhstan and the EDB charter, which is an integral part of the Agreement, bearing in mind the need to create favourable conditions for the EDB’s operations in Russia.

The EDB is a subject of international law having international legal capacity, and enjoys the rights of a legal entity in Russia. The Bank has a special legal status which grants it a number of preferences and privileges in Russia, including:

• immunity against any legal process or search, requisition, confiscation or expropriation of property;
• exemption from taxes and customs duties; and
• stability provisions protecting it from losses or risks resulting from changes in laws or banking regulation in Russia.

The parties agreed that the Agreement on the Terms of the Presence of the EDB in the Russian Federation will be applied on a provisional basis immediately upon signing. However, to become effective, the Agreement must be considered and ratified by the Federal Assembly of the Russian Federation. Once the Agreement is ratified by both Chambers of the Federal Assembly, the President of Russia will sign a special act to that effect.