LONDON, July 23 The European Bank for
Reconstruction and Development said on Wednesday that a majority
of its board of directors had given it "clear guidance" that
they would be unable to immediately approve new investment in
The statement from the bank comes a week after the EBRD said
it would consult all of its shareholders on the implications of
the European Union's call for it and the European Investment
Bank (EIB) to suspend new lending in Russia.
"Their guidance follows a declaration by last week's
European Council which called on the EU member states to
coordinate their positions within the Bank's Board. The EBRD
management will be guided by this in its operational approach in
Russia," the EBRD said in a statement.
The Board of Directors represents all EBRD shareholders
which consist of 64 member states, the European Union and the
European Investment Bank.
The EBRD said, however, that it would continue to manage its
portfolio of existing projects in Russia and would maintain its
physical presence there.
Russia has traditionally been the biggest recipient of the
London-based EBRD's funds - it lent 1.8 billion euros ($2.46
billion) there last year. The EIB pledged to lend more than 1
billion euros to Russia last year.
In the first six months of 2014, Russia accounted for 19 per
cent of the bank's investments. During this period, investments
in all the countries of operations were a record 3.6 billion
euros, the statement added.
(Reporting by Carolyn Cohn and Sujata Rao. Editing by Chris