The EDB accounts for the largest amounts of investment project finance in the CIS in Q1 2018 and is the main investor in Kazakhstan and Russia’s private sector (review)

29 May 2018

Moscow, 29 May 2018. In Q1 2018, multilateral development banks (MDB) approved finance for CIS investment projects for a total of US $2 billion, with sovereign finance accounting for 54% and the private sector 46%.

Compared to Q4 2017, MDBs’ investment extended to the private sector in the CIS increased by 24%, to US $931 million. Six MDBs (ADB, EDB, EBRD, EIB, IIB, and IFC) approved 16 projects. Of these, the EDB accounts for the largest portion of funding.

The majority of private projects (26% of the value of all projects signed in Q1 2018) are in the natural resources and mining sector, with MDBs' loans totalling US $241 million.

Among the countries, Kazakhstan (60%, six projects) and Russia (22%, four projects) were the main recipients of funds for the private sector. The EDB was the leading investor in Kazakhstan and Russia, with three projects supported in each of the countries.

The ADB, EBRD and World Bank Group (IBRD and IDA) approved 17 projects including special sovereign loans for governments, technical assistance and grants, for a total of US $1,081 million.

The agricultural sector received the largest portion of sovereign finance in the quarter (46%, US $500 million). These funds were extended by the IBRD and IDA to Uzbekistan as additional financing for the horticulture development project.

Uzbekistan, with US $841 million (78% of the total) provided by MDBs, was the main recipient of sovereign finance in the CIS.

The full version of the review is available online. 

Additional Information:

The review covers finance approved by multilateral development banks (MDBs) in Q1 2018 in the CIS countries, namely Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

The review was prepared based on information published on the official websites of multilateral financial institutions, including the Asian Development Bank (ADB), the Eurasian Development Bank (EDB), the Eurasian Fund for Stabilization and Development (EFSD), the Black Sea Trade and Development Bank (BSTDB), the European Investment Bank (EIB), the Islamic Development Bank (IDB), the Nordic Investment Bank (NIB), the Asian Infrastructure Investment Bank (AIIB), the International Investment Bank (IIB), the International Bank for Economic Cooperation (IBEC), the New Development Bank (NDB), and the World Bank Group comprising the International Finance Corporation (IFC), the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

The approved finance covered by the review is of two types: (1) private projects, and (2) grants, special sovereign loans and technical assistance extended through the public sector. 

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

The EDB Media Centre:

Alexander Savelyev +7 (985) 765 23 59 (Moscow)                                         

Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)

Sergey Gorbachev +7 (916) 727 22 00 (Moscow)                                         

pressa@eabr.org

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