3 Jul 2023 17:05

Russia reduces share in EDB to 44.8%, Kazakhstan increases to 37.3% - Kazak Cabinet of Ministers

ASTANA. July 3 (Interfax) - Russia's share in the charter capital of the Eurasian Development Bank (EDB) has decreased from 66% to 44.8% following redistribution, and Kazakhstan's share has increased from 33% to 37.3%, the press service of the Kazakh government reported.

"On June 28, the EDB Council's decision on the redistribution of the Bank's charter capital among its member states has been fully implemented. Part of shares held by the Russian Federation in the Bank's paid-in capital has been evenly distributed among the other member states and, as a result, the Russian Federation's stake in the EDB has decreased from 66% to 44.8% and Kazakhstan's stake has increased from 33% to 37.3%," the government said after the meeting of the EDB Council in Astana.

Parliamentary members noted when discussing the bill that raising Kazakhstan's stake would allow for access to funding, to swap lines closed for the EDB by investment banks, and keep the same ratings and current lending rates.

Kazakh Prime Minister Alikhan Smailov chaired a meeting, during which Council members discussed the possibility of Uzbekistan joining the EDB, since the expansion of the membership will help reduce potential risks and promote the launch of new integration projects.

EDB CEO Nikolai Podguzov noted that the investment portfolio of the development institute totaled $13.4 billion, with the total number of projects reaching 273.

As previously reported, the EDB Council in January of this year approved the redistribution of the bank's charter capital between the member countries, by which part of the block of shares owned by the Russian Federation is evenly redistributed among the other member countries. Consequently, Russia's share in the bank's capital has reduced from 65.98% to 44.79%. Meantime, the Kazakhstan's share in the EDB has increased to 37.3%. Armenia and Kyrgyzstan should own 4.23% of the bank each against the previous 0.01% of the capital, Belarus' share should increase to 5.21% from 0.99%, and Tajikistan's share should rise to 4.26% from 0.03%.

Kazakhstan had to pay Russia around $43 million for the purchase of the 4.2% stake in the EDB.

"The decrease in the share of the Russian Federation with the increase in the shares of the Republic of Kazakhstan and other shareholder countries will render it possible to have the shareholding structure of the EDB be symmetrical and neutralize the risks of its project activities. The Republic of Kazakhstan will be provided with access to funding, swap lines closed for the EDB by investment banks will be restored, and ratings and current lending rates will be preserved," the Kazakh parliament noted earlier in materials for the meeting.