Eurasian Development Bank

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Eurasian Development Bank
Eurasian Development Bank logo, EABRLOGO.jpg
Formation12 January 2006
TypeInternational organization
Legal statusTreaty
HeadquartersAlmaty, Kazakhstan
Region served
6 countries
Chairman of the Management Board
Nikolai Podguzov  Russia
Main organ
Management Board and Council of Ministers of Finance

The Eurasian Development Bank (EDB) is a regional development bank established by the Russian Federation and the Republic of Kazakhstan in 2006. It has six member states located in both Asia and Europe, primarily in the former territory of the Soviet Union, including Armenia, Belarus, Kyrgyzstan, and Tajikistan. Other states and international organisations are able to become members by signing up to the bank's founding agreement.

Member states[edit]


  • During an interview, Dmitry Pankin, chairman of the EDB's management board, stated that there were 12 countries expressing to join, including Azerbaijan, Egypt, Israel, India, Indonesia, Iran, Japan, Mongolia, Singapore, Thailand, the Republic of Korea and Vietnam.[1]
  • Moldova Moldova: In November 2019, Moldova confirmed its intention to join the Eurasian Development Bank during a meeting in Moscow.[2]
  • Hungary Hungary: Hungary expressed its interest to join the Eurasian Development Bank. Hungarian finance minister Mihály Varga stated that the Hungarian government is aiming for full membership by 2020.[2] As a former member of Comecon, Hungary will be the first former Warsaw Pact state to join the EDB.[3]

History and functions[edit]

EDB was founded on the initiative of the presidents of Russia and Kazakhstan and formalised by the signing of an international agreement on 12 January 2006.[citation needed] The bank began operating in June 2006 when laws ratifying the agreement came into force. Armenia and Tajikistan joined in 2009, Belarus in 2010, and Kyrgyzstan in 2011.[citation needed]

The bank's mission is to facilitate, through its investment activity, the development of market economies, economic growth and the expansion of trade and other economic ties in its member states.

The bank's charter capital totals US $7 billion, including US $1.5 billion of paid-in capital and US $5.5 billion of callable capital. The member states hold the following shares in the bank's capital: the Russian Federation 65.97%, the Republic of Kazakhstan 32.99%, the Republic of Belarus 0.99%, the Republic of Tajikistan 0.03%, Armenia 0.01%, and the Kyrgyz Republic 0.01%.[citation needed]

EDB's operations are governed by international law. As such, it:

  • has international legal capacity
  • enjoys the rights of a legal entity in its member states
  • has special legal status allowing it certain privileges in its member states, including property and judicial immunity, special tax and customs privileges, and exemptions which protect the Bank from some of the costs and risks associated with changes in the legislation and banking regulations in its member states
  • has the status of a preferred creditor.

The bank's headquarters is located in Almaty, Kazakhstan.[citation needed]

EDB has a branch in St. Petersburg and representative offices in Astana, Bishkek, Dushanbe, Yerevan, Minsk, and Moscow.[citation needed]

The bank has the status of an international organisation. In January 2013, the Organisation for Economic Cooperation and Development recognised it as a multilateral financial institution with risk classification 3 and buyer risk classification SOV/CC0.[citation needed]

EDB has had observer status at:

  • the UN General Assembly since 2007
  • the Trade and Development Board of United Nations Conference on Trade and Development since 2009
  • the Eurasian Group on Combating Money Laundering and Financing of Terrorism since 2008
  • the International Investment Bank since 2014.

EDB is:

  • a member of the Kazakhstan Stock Exchange, the International Capital Market Association, and the International Swaps and Derivatives Association
  • an institutional member of the World Economic Forum (since 2014)
  • a member of the Multilateral Financing Institutions Working Group on Environment (since 2012).[citation needed]


Under EDB's Strategy for 2013–2017, approved by its Council on 2 July 2014, it aims to build on the success it achieved and to enhance its role in furthering the process of integration in the region.[citation needed] The creation and enhancement of the Customs Union and Single Economic Space posed significant challenges for the bank, but in addressing the challenges the bank aimed to promote deeper economic cooperation between its member states.

The bank is focusing its efforts in the following areas:[citation needed]

  • financing projects which aim to develop power generation, transport, and municipal infrastructure in its member states
  • promoting energy efficiency by financing projects which optimise the consumption of energy and other resources by business and industry
  • financing projects which help to forge trade and other economic links and mutual investment that encourage economic integration between the member states

EDB key performance indicators for 2013–2017:[needs update]

  • Its investment portfolio is expected to reach at least US $4.7 billion by the end of 2017. This will be achieved by launching new projects to the tune of at least US $3.7 billion in 2013-2017.[citation needed]
  • The share of projects with an integration effect in the investment portfolio will be at least 50% by the end of 2017. The projects with an integration effect include:
    • projects that include investment from member states
    • projects that generate trade between member states, including equipment, materials and finished product supplies
    • projects that envision the establishment of new joint ventures and trans-border groups or support to the existing ones, the creation and advancement of single markets, and the use of uniform technological solutions.[citation needed]

The investment portfolio will have the following breakdown by sectors to promote the bank's strategic and sector priorities (the percentage provided is the maximum share of the sector in the current investment portfolio):[citation needed]

    • Transport infrastructure – up to 40%
    • Power generation and energy efficiency – up to 50%
    • Telecommunications infrastructure – up to 20%
    • Municipal and other infrastructure projects – up to 20%
    • Financial sector – up to 20%
    • Other sectors (metals, mining, chemical and mineral fertiliser production, agro-industrial complex, etc.) – up to 50%

The bank identifies the priority sectors for each member country according to the needs of their economies and the areas in which they need to become more competitive. Priorities must also take account of the bank's resources. Goals must be relevant and achievable for each country with support from the bank.


Investment operations[edit]

The bank invests in major medium- and long-term projects. As a rule, the minimum cost of the projects that are considered is US $30 million, with a maximum repayment period of 15 years.[citation needed]

The completed investment projects include:[citation needed]

  • construction of the Tikhvin Freight Railcar Plant in Russia
  • purchase of BelAZ dump trucks for the modernisation of coal mining at the Siberian Coal Energy Company in Russia
  • construction of a mining and processing plant at the Voskhod chromite deposit in Kazakhstan
  • development of the Zarechnoye uranium deposit in Kazakhstan
  • construction of an MDF[clarification needed] plant in Tomsk Oblast
  • construction of a spinning mill in Tajikistan
  • pre-export financing of grain production and funding development of Kazakhstan's largest agricultural holdings
  • financing the purchase and transportation of wheat to Armenia
  • purchase of agricultural equipment for Kazakhstan's grain producers
  • utilisation and processing of associated petroleum gas at the Kenlyk field in Kazakhstan
  • construction of the North Kazakhstan-Aktobe Region interregional power transmission line
  • production of the Sukhoi Superjet 100, a new passenger plane, in Russia
  • construction of an electric locomotive plant in Kazakhstan
  • construction of an inter-regional power transmission line and supporting utilisation of the North Kazakhstan-Aktyubinsk Region power line
  • overhaul of facilities at Ekibastuz Power Plant 2 in Kazakhstan
  • financial sector projects in member states

As of 1 January 2015, the bank's investment portfolio totalled around US $3,16 billion. The share of projects with an integration effect in the Bank's current investment portfolio exceeded 49%.

EDB has 88 investment projects under implementation, including:[citation needed]

  • construction of a third generating unit and overhaul of facilities at Ekibastuz Power Plant 2 in Kazakhstan
  • construction of the Polotsk hydropower plant in Belarus
  • reconstruction and development of Pulkovo airport in St. Petersburg
  • construction of the Osipovichi Railcar Plant in Belarus
  • construction of a new unit at the Abakan combined heat and power plant in Khakassia, Russia
  • co-financing the construction of the Western High-Speed Diameter toll road in St. Petersburg
  • development of marine freight transport in the Northern Caspian region
  • financing RAIL 1520's project to develop the freight transportation market
  • modernisation of Altynalmas’ gold mining and processing facilities in Kazakhstan
  • financing projects to construct hotel and business centres in Minsk and Astana
  • financing Bogatyr Komir's large-scale investment in a technical upgrade
  • construction and commissioning of a small section wire mill at the Belarusian Steel Works
  • financing the purchase of agricultural machinery and equipment from EDB member states for leasing to Kazakhstan's agricultural producers
  • construction of an electric locomotive plant in Kazakhstan
  • provision of a loan guarantee to Deere Credit Inc. allowing it to purchase agricultural equipment for leasing to Kazakhstan's agricultural producers
  • construction of Kazakhstan's new railcar repair plant – the Yeskene Railcar Service Centre
  • financing the development of Polymetal's mining projects and associated infrastructure
  • co-financing Acron Group's development of a potassium/magnesium salt deposit in Perm Krai by acquiring an interest in the developer
  • purchase of fuel for the Bishkek CHP plant in Kyrgyzstan during the heating season
  • construction of the Apatity−Kirovsk heat pipeline in Murmansk Region
  • pre-export financing of uranium exports from the Zarechnoye deposit in South Kazakhstan Region
  • improving transport infrastructure as part of developing the Elga coal deposit in the Sakha (Yakutia) Republic
  • reconstruction of the Kazatomprom sulphuric acid plant in Kazakhstan
  • development of Karatau's uranium ore extraction and primary treatment facility in South Kazakhstan Region
  • financing the project to create an automated control system for fuel and power consumption by locomotives in Kazakhstan
  • construction of a 45 MW wind power plant in the town of Yereimentau, Kazakhstan
  • financing the purchase of assembly kits to build Lada 4x4 passenger cars at the Asia Auto plant in Ust-Kamenogorsk
  • financing the project to upgrade transformer production at the Minsk Electrotechnical Plant named after Vasily Kozlov
  • financing the replacement of obsolete port equipment at the Magadan sea port
  • financing the purchase of materials and parts for the manufacture of dump trucks and other heavy-duty vehicles by BELAZ
  • financing the construction and upgrade of antenna structures shared by satellite operators (Russian Towers)

In acknowledging that the banking system is the infrastructural and institutional foundation of the market economy, the bank is implementing special programmes to provide targeted loan facilities to financial institutions in its member states:[citation needed]

  • SME support[clarification needed]
  • micro-finance support
  • trade finance
  • energy efficiency improvement
  • agro-industrial development

Since 2010, EDB has been a contributor to the Macquarie Renaissance Infrastructure Fund. This fund totals US $630 million, in which EDB's investment is US $102 million. The fund's other investors include the International Finance Corporation, European Bank for Reconstruction and Development, Russian State Bank for Development and Foreign Economic Affairs (Vnesheconombank), Kazakhstan's Кazyna Capital Management, Macquarie Capital Group and Renaissance Capital. The fund is intended to support the implementation of infrastructure projects in Commonwealth of Independent States countries, including in priority regions of these countries. It focuses on investing in projects in the power generation sector (including generation, distribution and heat networks), transport and communication (including toll roads, railway and accompanying infrastructure, sea ports, airports and car parks) and the utilities sector (including water, gas supply, sewage, and social infrastructure).

Managing the Eurasian Fund for Stabilization and Development[edit]

Main article: EurAsEC Anti-Crisis Fund

The EurAsEC Anti-Crisis Fund totalling US $8.513 billion was established by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Its main goals are to help its member countries mitigate the negative effects of the global financial crisis, to ensure their long-term economic and financial stability, and to foster integration.

In June 2009, member states appointed EDB the manager. As the fund manager, EDB prepares and implements its programme.

In June 2015 fund was renamed as the Eurasian Fund for Stabilization and Developmentd because of the abolition of the EurAsEC as a result of the creation of the Eurasian Economic Union.

The fund has two instruments at its disposal: financial credits to support budgets, balances of payments, and national currencies; and investment credits for international projects. In addition to financial and investment credits, it can provide grants to its member states.

In 2010-2011, the fund authorised financial credit for Tajikistan (US$70 million) and Belarus (US$3 billion). To date,[when?] US $2.63 billion has been disbursed under these loans.

In December 2013 the fund's council approved the financing for two investment projects in the Kyrgyz Republic:

  • US $60 million to reconstruct a section of the Bishkek-Osh road corridor
  • US $20 million to purchase agricultural equipment

EDB and the Kyrgyz Republic signed agreements to finance these projects in March 2014.

In July 2014 the fund's council decided to provide a US $150 million investment credit to Armenia to finance the construction of the North-South road corridor (Phase 4). In April 2015 the bank and the Republic of Armenia signed an agreement to finance this project.

In addition, the Fund's Council approved blueprints for four projects:

  • reconstruction of the Toktogul HPP in Kyrgyzstan (US $75 million), including the replacement of Units 2 and 4
  • commissioning of Unit 2 at the Kambarata 2 HPP in Kyrgyzstan (US $80 million)
  • upgrade of irrigation facilities in Armenia (US $40 million)
  • distribution network infrastructure construction to export agricultural produce from the Kyrgyz Republic to the Customs Union member states (US $25 million)

Technical assistance[edit]

In 2008, the bank established a technical assistance fund to provide financial support for pre-investment and innovation research at the international, national and sector levels, aimed at deepening Eurasian integration, strengthening market infrastructure and promoting sustainable economic growth in its member states.

This fund implements the following programmes:

  • technical assistance as part of financing investment projects
  • the Regional Integration Studies Programme
  • the Innovative Economy Support Programme
  • the Programme of Support for Interregional and International Programmes

The total portfolio includes 57 projects and has a value of about US $6.5 million.


EDB's Strategy and Research Department implements large-scale research and applied projects, holds regular conferences and round tables; and publishes research, sector-specific and specialist reports and macroeconomic reviews providing analysing and forecasts relating to the economic development of the region. Materials published by the Bank discuss regional integration, the operations of other development banks and the financing of investment projects in the post-Soviet space.

The deepening and widening of integration in Eurasia made possible by the establishment of the Customs Union and the Single Economic Space by Belarus, Kazakhstan and Russia are processes that require comprehensive analysis. EDB established the Centre for Integration Studies in 2011 to provide this analysis. The centre carries out research and drafts reports and recommendations for EDB's member-state governments. It also hosts round tables and expert group meetings on a wide range of issues concerning regional economic integration. The results of the centre's work can be found in a number of publications, in particular its series of Reports, the Journal for Eurasian Integration, the Eurasian Integration Yearbook, various papers and monographs. The centre leads work on a number of large-scale permanent projects, in particular the System of Indicators of Eurasian Integration, Monitoring of Mutual Investments in the CIS, and the Integration Barometer.r

Mobilisation of financial resources[edit]

EDB works with financial institutions worldwide to mobilise long-term finance in capital markets, which are the main source of financing for the bank's investment activities. The fundraising instruments include Eurobonds under the EMTN[clarification needed] programme; bonds in local markets; securities under the ECP[clarification needed] programme; and bilateral bank loans.

The bank has credit ratings from international rating agencies: Standard & Poor's (ВВВ/negative) and Moody's Investors Service (А3/stable).

International cooperation[edit]

EDB focuses on cooperation with the United Nations and its specialized agencies, the Eurasian Economic Commission and the Commonwealth of Independent States.

The bank attends meetings of the Heads of Governments of the CIS and sessions of the CIS Economic Council. Its representatives are involved in the EDB member states’ intergovernmental commissions for trade and economic cooperation.

EDB is developing its cooperation with various UN organisations, including the UN Development Programme, the UN Trade and Development Board and the UN Economic and Social Commission for Asia and the Pacific. In November 2010, EDB and the United Nations Economic Commission for Europe finalized a memorandum of understanding.[4]

EDB also works with the Interbank Association of the Shanghai Cooperation Organisation.

EDB cooperates with many international development institutions on project co-financing, information exchange and the introduction of best international practice in corporate governance. Partners include the World Bank, the International Finance Corporation and the Asian Development Bank.

In January 2014, EDB became an institutional member of the World Economic Forum.

In December 2015, EDB and the Asian Infrastructure Investment Bank signed a memorandum of cooperation.[5]

In April 2017, EDB and the New Development Bank, representing BRICS member states, signed a framework of cooperation agreement.[6]

In November 2017, EDB signed a partnership agreement with the United Nations Industrial Development Organization.[7]

In September 2018, EDB explored opportunities to open a representative office in Uzbekistan.[8]

In February 2018, EDB and the Black Sea Trade and Development Bank concluded a strategic cooperation agreement.[9]

Environmental and social responsibility[edit]

In all its activities, EDB upholds the principles of social and environmental responsibility and strives to improve the efficient use of natural resources, environmental protection, and sustainable socioeconomic development generally. Especially when assessing its investment projects, the bank takes a comprehensive approach to the resolution of environmental and social issues. Efforts to mitigate and remedy adverse environmental and social impacts informed the bank's environmental and social responsibility policy which was adopted by the management board in 2012.

The bank extend finance only to projects which do not significantly degrade the environment or the social well-being and living conditions of local people. The bank's investments are intended improve living standards, employment and social security. Improving the efficient of use of natural resources is also a very important objective.

The bank strives to avoid or mitigate the adverse environmental or social effects of the projects it supports and to ensure that they contribute to the sustainable development of its member states.

The bank does not finance activities involving forced or child labour, the manufacture or distribution of tobacco or alcohol products, gambling, the manufacture of or trade in weapons and ammunition and other activities prohibited by the laws of its member states or international conventions on the protection of biodiversity and cultural heritage, as well as other types of activities restricted by resolutions of the Management Board and/or the Bank's Council.

In 2012, the bank joined the Multilateral Financial Institutions Working Group on Environment.


The bank's management comprises the bank's council, the management board, and the chairman of the management board.

The bank's council is its highest overall management body. Each member state of the bank appoints one authorised representative to the council and a deputy become the council members. The council meets when required, and at least twice a year.

The members of the Bank's Council are:

  • from Armenia: Gagik Khachatryan, Minister of Finance of the Republic of Armenia (Plenipotentiary); Iosif Isayan, Deputy Minister of Energy and Natural Resources of the Republic of Armenia[10]
  • from Belarus: Vladimir Amarin, Minister of Finance of the Republic of Belarus (Plenipotentiary)
  • from Kazakhstan: Karim Masimov, Prime Minister of the Republic of Kazakhstan (Plenipotentiary, Chairman of the Council); Bahyt Sultanov, Minister of Finance of the Republic of Kazakhstan[10]
  • from Kyrgyz Republic: Olga Lavrova, Minister of Finance of the Kyrgyz Republic (Plenipotentiary)[11] Temir Sariyev, Minister of Economy and Antimonopoly Policy of the Kyrgyz Republic
  • from Russian Federation: Anton Siluanov, Minister of Finance of the Russian Federation (Plenipotentiary)[10]
  • from Tajikistan: Abdusalom Kurbonov, Minister of Finance of the Republic of Tajikistan (Plenipotentiary); Shukhrat Maksudzoda, Chief, Strategic Planning and Reform of the Executive Office of the President of the Republic of Tajikistan

The management board is a permanent executive authority. Its activities are governed by the bank's council. The chairman of the management board is Nikolay Podguzov.[12]

See also[edit]


  1. ^
  2. ^ a b "Moldova to join Eurasian Development Bank, Hungary mulls membership". 2 December 2019.
  3. ^ "Hungary plans to join Eurasian Development Bank in eastward diplomatic push | Reuters".
  4. ^ "UNECE and the Eurasian Development Bank conclude a Memorandum of Understanding | UNECE".
  5. ^
  6. ^ "New Development Bank and Eurasian Development Bank Sign Memorandum of Understanding to Establish Framework for Cooperation".
  7. ^ "UNIDO and the Eurasian Development Bank strengthen partnership with new relationship agreement | UNIDO".
  8. ^ "Eurasian Development Bank eyes to open office in Uzbekistan". 11 September 2018.
  9. ^ "Евразийский банк развития и Черноморский банк торговли и развития договорились о стратегическом сотрудничестве".
  10. ^ a b c "Company Overview of Eurasian Development Bank". Bloomberg BusinessWeek. Retrieved 25 March 2014.
  11. ^ "Company Overview of Asian Development Bank - Olga Vladimirovna Lavrova". Bloomberg NewsWeek. Retrieved 25 March 2014.
  12. ^ "Chairman of the Management Board Nikolay Podguzov – Eurasian Development Bank". Retrieved 2020-06-29.