WARSAW May 15 The European Bank for
Reconstruction and Development's lending to Russia could drop as
the economy slows, the bank's president said on Thursday, adding
some of its shareholder countries are uneasy about Russia's
dealings with Ukraine.
EBRD funding in Russia slumped last year to 1.8 billion
euros from 2.6 billion in 2012 due to what the development bank
termed "difficult investment conditions" and the bank's head
Suma Chakrabarti said it could now drop this year.
"It could impact on our business volumes in a country the
size of Russia if the economy keeps slowing because investment
then slows," Chakrabarti told reporters.
The bank had no plans at the moment, however, to stop its
funding to Russia in reaction to the annexation of Crimea in
eastern Ukraine, despite anxiety among some of its shareholders
about the situation.
"There are some shareholders that are seriously concerned
at, as they perceive it, Russia's behaviour in eastern Ukraine."
"That may play out in the EBRD, it hasn't yet... the
shareholders bought into my argument that the EBRD has been a
force for good in Russia. We will see what the future holds, but
not yet," Chakrabarti said.
(Reporting by Marc Jones Editing by Jeremy Gaunt)