Kazakhstan could pay Russia 25-30 bln tenge for 4.2% stake in Eurasian Development Bank

ASTANA. Nov 17 (Interfax) - Kazakhstan could pay Russia 25 billion-30 billion tenge for a 4.2% stake in the Eurasian Development Bank (EDB), Kazakh Deputy Prime Minister Yerulan Zhamaubayev said.

"Negotiations are underway, there will be an option, without actual payment, it will be made some time after. If we break the payment down by years, I don't think it will be a heavy burden - about 7 billion tenge a year. The total amount will be 25 billion-30 billion tenge. The figures need to be finalized; they are preliminary so far," Zhamaubayev told reporters on the sidelines of the Senate session when asked how much the purchase of Russia's 4.2% stake in EDB will cost Kazakhstan.

Zhamaubayev said earlier that Kazakhstan is discussing the purchase of Russia's stake in the portfolio of the EDB, but there is no final decision yet.

EDB said in June that it will continue to finance projects in Russia and Belarus, under the existing sanctions, while the share of such projects in the bank's portfolio may decrease.

The EDB's current investment portfolio is $4.4 billion. Russia accounts for 39% of the bank's portfolio, Kazakhstan for 36% and Belarus for 23%.

The bank's representatives said that Russia's share in the EDB portfolio may drop to 35%, but is unlikely to fall below this level.

The EDB is an international financial organization, founded by Russia and Kazakhstan in January 2006 for the purposes of assisting the development of the market economies of its state members, as well as ensuring their stable economic growth and expanding trading operations. The states participating in the bank are: Russia and Kazakhstan as founders, as well as Armenia, Tajikistan, Belarus, Kyrgyzstan and Tajikistan as members. The EDB is headquartered in Almaty, Kazakhstan.