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Russia votes against EBRD financial plan for 2016-2020

"We saw a number of shortcomings, particularly the lack of a clear position on resuming the Bank’s operations in Russia," Deputy Finance Minister said

TBILISI, May 15. /TASS/. The Russian delegation voted against a new financial plan of the European Bank for Reconstruction and Development (EBRD) for 2016-2020, because the document does not include the resuming operations in Russia, Deputy Finance Minister Sergei Storchak told TASS Friday.

The financial plan includes increasing EBRD investment to 10-11 bln euro per year from 9 bln euro under more stringent requirements for the pace of economic reforms, which, according to the bank's management, slowed down or were stopped in many countries.

"We saw a number of shortcomings, particularly the lack of a clear position on resuming the Bank’s operations in Russia. We were the only country that would like to see the plan redesigned, so we voted against," Storchak said.

The vote took place during the meeting of the EBRD Board of Governors, where Storchak sharply criticized the EBRD deciding in July of 2014 to suspend work on new projects in Russia. Storchak said that the Bank was used to exert political and economic pressure on Russia.

Storchak said that other countries-EBRD shareholders reacted neutrally to Russia’s position. At the same time many odfficials expressed their criticisms of the financial plan and the strategy of the Bank during the meeting. Storchak said that the Russian delegation has no claims to the Bank's management.

"The EBRD is one of the leading multilateral development banks, the shareholders are happy with what it’s doing," Storchak said.

Earlier Deputy Finance Minister Sergei Storchak said, "We are surprised and disappointed that the EBRD, being a major and reputable international organization, became involved in the sanctions debate, and was used to increase political and economic pressure on our country, which is contrary to the principles of work of the multilateral development banks and, above all, the mandate of the bank."

According to him, the EBRD began to actively use the principle of "managed flexibility", which ultimately worsened the Bank’s financial conditions. "This practice, in our opinion, is the main risk for the present and the future of the Bank as a successful international financial institution,"

According to him, the Bank finished 2014 with a net loss of 568 mln euro, which is close to that of the crisis of 2008-2009.