Russia officially joins Asian Infrastructure Investment Bank

Asia-Pacific, Europe, News April 14, 2015 , by IRIA No Comments

Russia officially becomes a founder of the China-led Asian Infrastructure Investment Bank (AIIB). It means Russian companies can take part in infrastructure projects in the Asia-Pacific region, and could attract foreign investment into Russia.

Russia applied for membership as a founding member of the AIIB 2 weeks ago, along with another 52 countries. The founding members have the right to establish the rules guiding the bank’s activities. China reportedly had rejected requests from North Korea and Taiwan to join the AIIB. The final list of the bank’s founding members will be announced on April 15.

“Russia as a country belonging to the target region of the bank’s operations, and is meant to play an important role in investment decisions and also attract investment funds from the bank in the interest of improving the infrastructure of Siberia and the Russian Far East. We expect that the bank will become an effective tool for strengthening transcontinental links and will contribute to Eurasian integration,”Russian Foreign Ministry spokesman Aleksandr Lukashevich said, according to RIA Novosti.

Meanwhile, the United States and Japan have decided not to join the AIIB. Japan which is China’s main regional rival has been hesitating due to its relations with Washington and the AIIB’s potential rivalry with the Asian Development Bank. Earlier this month, Washington reportedly questioned Japan following the rumors of its possible participation but Tokyo has denied everything.

Also Read: Switzerland and Luxembourg apply for Asian Infrastructure Investment Bank

The AIIB is seen by many experts as an alternative to Western-led financial institutions such as the World Bank and the International Monetary Fund. Washington has been pressuring its allies against joining the bank and raising concerns whether the China-led bank will “meet international standards of governance and transparency.” However, leading European economies, including the United Kingdom, France, Germany, Italy, Luxembourg and Switzerland applied to join earlier last month. The application deadline for membership was March 31.

The Asian Bank for Infrastructure Investment (AIIB) was established in 2014 by China. The bank will finance infrastructure projects in the Asia-Pacific Region; its headquarters will be in Beijing. The initial subscribed capital of AIIB will be $50 billion and is planned to be increased to $100 billion.