New BRICS Development Bank to lend $1.2 bln to Russia

The New Development Bank (NDB, formerly BRICS Bank) will allocate $1.2 billion in loans for projects in Russia (130 billion rubles at the exchange rate of the Central Bank as of November 29), according to the materials for the budget for 2025-2027 (Izvestia has studied them). Over the entire period of such agreements (since 2017), $336 million has already been raised, the Finance Ministry's press service told the editorial board.

The bank is implementing four projects in Russia, the ministry recalled. They are aimed at preserving cultural and historical heritage, modernizing the water supply system, and developing courts.

In March 2022, the NBR announced the suspension of transactions in Russia due to the sanctions imposed on the country. However, in October 2024, during the BRICS summit, Finance Minister Anton Siluanov said that a mechanism has been prepared for the possible resumption of these investments.

"The NDB can work through third friendly countries - for example, India and China. Financing can also take place through independent funds and organizations that are not formally linked to the bank, but are affiliated with its participants. This will reduce the risk of direct sanctions pressure on the financial organization," says Farhad Ibragimov, an expert of the PFUR Economics Department.

Most likely, the mechanisms of nominating loans in currencies that are not subject to restrictions, for example, in yuan, will be involved, believes Antonina Levashenko, head of the Center-OECD IPEI of the Presidential Academy.

Read more in Izvestia's exclusive piece:

World Loans: New BRICS Development Bank to lend $1.2 bln to Russia