BUDAPEST, April 13. /TASS/. The Hungarian government has decided to terminate its participation in the International Investment Bank (IIB), against which the US recently imposed sanctions, the Vilaggazdasag publication reported on Thursday, citing its sources.

"In light of yesterday's statement by the US, the Hungarian government analyzed the situation with the International Investment Bank and came to the conclusion that participation in its activities doesn’t make sense for them. Therefore, as Vilaggazdasag learned from credible sources, the government has decided to pull its representatives from this bank," the publication wrote.

On Wednesday, the US Treasury Department announced it was imposing sanctions against the IIB and its leaders - two Russian citizens and one Hungarian citizen. The Treasury argued that the Budapest-headquartered IIB "enables Russia to increase its intelligence presence in Europe, opens the door for the Kremlin to exert malicious influence in Central Europe and the Western Balkans, and could serve as a mechanism for corruption and illicit finance, including sanctions violations."

The IIB was established in 1970 as part of the Council for Mutual Economic Assistance to provide loans to members of the organization. In recent years, the Czech Republic and Slovakia have withdrawn from it, and Bulgaria and Romania have announced their intention to follow their example. The members of the bank are Hungary, Vietnam, Cuba, Mongolia and Russia. Serbia has also expressed its intention to join it.