13 Jul 2009 14:50

Agreement on EurAsEC anti-crisis fund sent to Duma for ratification


Agreement on EurAsEC anti-crisis fund sent to Duma for ratification

MOSCOW. July 13 (Interfax) - President Dmitry Medvedev submitted the agreement on creation of the Eurasian Economic Community (EurAsEC) anti-crisis fund to the State Duma for ratification on Monday, according to the Duma's electronic data base.

The heads of government of the EurAsEC countries, including Armenia, signed the agreement on formation of the fund on June 9, 2009. Russia will supply $7.5 billion out of the $10 billion total. Kazakhstan will contribute $1 billion.

Money from the fund will be provided to signatory countries as sovereign loans and stabilization loans, and to finance interstate investment projects.

It was reported earlier that Deputy Prime Minister and Finance Minister Alexei Kudrin was appointed chairman of the board of the fund, which ought to begin functioning in September 2009.

"I believe that the countries will not wait until the deadline, but will provide their contributions as soon as the agreement is ratified," Kudrin said. "In order for operations to begin, 50% of the initial contribution [10% of each country's equity stake] must be allocated. For Russia that's $750 million. Accordingly half of that amount and half of the initial allocations from the others are required in order to begin operations. I think that we will begin operations no later than September."

Russia has already revised its budget to include the $750-million allocation to the anti-crisis fund.

EurAsEC includes Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. Moldova, Ukraine and Armenia have observer status.