Eurasian Development Bank

The Eurasian Development Bank (EDB) is a regional development bank established by the Russian Federation and the Republic of Kazakhstan in 2006. The Bank currently has six member states located in both Asia and Europe, 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

  • Armenia
  • Belarus
  • Kazakhstan
  • Kyrgyzstan
  • Tajikistan
  • Russia

History and functions

EDB was founded on the initiative of the Presidents of Russia and Kazakhstan 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 EDB 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%, the Republic of Armenia 0.01%, and the Kyrgyz Republic 0.01%.[citation needed]

EDB’s operations are governed by international law. As such the Bank:

  • 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; and
  • 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 (OECD) recognised EDB 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 UNCTAD since 2009,
  • the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) since 2008, and
  • the International Investment Bank (IIB) since 2014.

EDB is:

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


Under EDB’s Strategy for 2013–2017, approved by the EDB Council on 2 July 2014, EDB aims to build on the success it has achieved so far 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 pose significant challenges for the Bank, but in addressing such challenges the Bank aims 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; and
  • 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:

  • The Bank’s current 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: [citation needed]
    • projects, which include investment from other EDB member states;
    • projects, which generate trade between EDB member states, including equipment, materials and finished product supplies; and
    • projects, which 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.

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. [citation needed]


Investment operations

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 (SUEK) 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 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; and
  • financial sector projects in member states.

As of 1 January 2015, the Bank’s current 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%. [citation needed]

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 (CHP) 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 4×4 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; and
  • 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;
  • microfinance support;
  • trade finance;
  • energy efficiency improvement; and
  • agroindustrial development.

Since 2010, EDB has been a contributor to the Macquarie Renaissance Infrastructure Fund (MRIF). The MRIF 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. MRIF is intended to support the implementation of infrastructure projects in CIS countries, including in priority regions of these countries. MRIF 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). [citation needed]

Managing the Eurasian Fund for Stabilization and Development

Main article: EurAsEC Anti-Crisis Fund

The EurAsEC Anti-Crisis Fund (ACF) totalling US $8.513 billion was established by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The ACF’s 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 (for more information visit

In June 2009, the ACF member states appointed EDB the manager of the Fund. As the ACF manager, EDB prepares and implements the Fund’s programme.

In June 2015 ACF was renamed as the Eurasian Fund for Stabilization and Development (EFSD). The Fund has been renamed because of the abolishment of the EurAsEC as a result of the establishment of the Eurasian Economic Union (EAEU).

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 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 will be used to reconstruct a section of the Bishkek-Osh road corridor; and
  • US $20 million will be used 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); and
  • 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

In 2008, the Bank established a Technical Assistance Fund (TAF) 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.

The TAF implements the following programmes:

  • The Programme of Technical Assistance as part of financing investment projects;
  • The Regional Integration Studies Programme;
  • The Innovative Economy Support Programme; and
  • The Programme of Support for Interregional and International Programmes.

The TAF portfolio includes 57 projects and has a total 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 for Integration Studies 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

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 programme;
  • Bonds in local markets;
  • Securities under the ECP 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

EDB focuses on cooperation with the UN and its specialised agencies, the Eurasian Economic Commission (EEC) and CIS.

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

EDB is developing its cooperation with UN organisations, including the UN Economic Commission for Europe (ECE), the UN Development Programme (UNDP), the UN Trade and Development Board (UNCTAD) and the UN Economic and Social Commission for Asia and the Pacific (ESCAP).

EDB also works with the Interbank Association (IA) of the Shanghai Cooperation Organisation (SCO).

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 Asian Development Bank.

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

Environmental and social responsibility

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.

In all its activities, and especially in assessing its investment projects, the Bank takes a comprehensive approach to the resolution of environmental and social issues. The Bank’s 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 will only extend finance to projects which do not significantly degrade the environment or the social wellbeing and living conditions of local people. The Bank’s investments should indeed 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;[1]
  • 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 ;[1]
  • from Kyrgyz Republic: Olga Lavrova, Minister of Finance of the Kyrgyz Republic (Plenipotentiary);[2]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);[1]and
  • 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 Bank’s Management Board is a permanent executive authority. Its activities are governed by the Bank’s Council.

The Chairman of EDB’s Management Board is Andrey Belyaninov.[1]


  1. ^ Jump up to:ab c d “Company Overview of Eurasian Development Bank”. Bloomberg BusinessWeek. Retrieved 25 March 2014.
  2. ^“Company Overview of Asian Development Bank – Olga Vladimirovna Lavrova”. Bloomberg NewsWeek. Retrieved 25 March 2014.
  • EDB’s official website
  • Eurasian Fund for Stabilization and Development’s website
  • Eurasian Economic Integration journal
  • Eurasian Integration Yearbook
  • EDB’s integration research

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