17 Jan 2023 11:59

Kazakhstan to pay Russia over $43 mln for 4.2% stake in Eurasian Development Bank

ASTANA. Jan 17 (Interfax) - Kazakhstan will pay Russia about 20 billion tenge or just over $43 million for a 4.2% stake in Eurasian Development Bank (EDB), Deputy Prime Minister and Minister of Finance Yerulan Zhamaubayev said.

"The total cost is about 20 billion tenge, up to 5 billion tenge in annual payments - we've broken it up into three or four years so as not to put pressure on the budget," Zhamaubayev told journalists when asked about the cost of Russia's 4.2% stake in EDB.

Kazakhstan's expenses associated with the payment for this stake will be included in the government budget for 2024, he added.

The increase in Kazakhstan-owned interest in EDB will lead to a rise in the number of investment projects that will be carried out in Kazakhstan, according to Zhamaubayev.

"Firstly, Kazakhstan's share will increase here. In fact, we are the second largest player in the EAEU [Eurasian Economic Union]. It is important for Kazakhstan to hold a higher interest in this bank, for a larger number of investment projects will be implemented in Kazakhstan. Secondly, this will help avoid some of the Western sanctions," he said.

EDB said earlier that Kazakhstan's stake in the EDB will grow to 37.29% from today's 32.99%

Zhamaubayev said in November 2022 that Kazakhstan might pay Russia 25-30 billion tenge for a 4.2% stake in the Eurasian Development Bank.

The Eurasian Development Bank 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.