Foreign Policy Blogs

The newest Central Asian development bank

On January 26, 2006, the Eurasian Economic Security Council (EAEC or EurAsSec) announced the inception of a new development bank that aims to improve economic issues for its member states.  According to Vladimir Putin, the Eurasian Development Bank (EADB, or sometimes EDB) was proposed by Nursultan Nazarbaev in 2004, in order to create regional economic security.  Kazakhstan's and Russia's legislature approved the treaty regarding the bank in the Spring of 2006.  The bank opened in June of 2006, with branches in Almaty and St. Petersburg, and offices in Moscow and Astana.  This week, the EADB will open an office in Dushanbe.

The bank is funded at USD 1.5 billion.  USD 1 billion has been underwritten by the Russian Federation; the remaining 33% is underwritten by the Republic of Kazakhstan.  Through increasing state membership, the EADB plans to increase its assets to USD 10 billion over the next few years; they can also raise money through global project finance avenues.  The bank's purpose is to fund EAEC initiatives, particularly in energy distribution and power plant development, agricultural product and equipment distribution, the development of uranium mines in Kazakhstan, and in general to fund the initiatives proposed through EAEC member goals.

The EAEC was first organized in October of 2000.  Members of the EAEC collective security organization include Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan, uniting to form a common customs regime, implement better currency coordination, and enhance border security.  Uzbekistan acceded to the EAEC last year.  Current observer states, welcomed in 2002 and 2003, include Armenia, Moldova, and Ukraine.

Eurasian Development Bank set to open June 1, 2006 
Mr. Putin, Press Conference Following EAEC Inter-State Forum, January 25, 2006
EAEC Treaty, original signatories