As a result of Russia’s military aggression against Ukraine, two China-based development banks have stopped providing assistance to Russia and Belarus, The Financial Times reports.
2 China-based banks to apply sanctions to Russia and Belarus
The move by the Beijing-based Asian Infrastructure Investment Bank to suspend loans to Russia and Belarus might strain ties between Russia and China, according to the report.
China so far has refused to impose sanctions on Russia, unlike many other countries. China has 27% of the voting power at the bank, while Russia has 6%. 23% of the bank’s voting shares are controlled by NATO members.
The bank shared a statement saying:
“As the war in Ukraine unfolds, the Asian Infrastructure Investment Bank (AIIB) extends its thoughts and sympathy to everyone affected. Our hearts go out to all who are suffering. We the management will do our utmost to safeguard the financial integrity of AIIB, against the backdrop of the evolving economic and financial situation.”
The New Development Bank, which is based in Shanghai, has also halted operations with Russia, according to the bank’s statement. According to NBD’s fact sheet, Russia is one of the company’s five shareholders, who each own 20% of the business.
“NDB will continue to conduct business in full conformity with the highest compliance standards as an international institution.”
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The punishments come as Russia attacked Ukraine. Sanctions have been imposed, a major city has been taken over, and at least one million people have fled the area.