The NDB move comes a day after the Asian Infrastructure Investment Bank (AIIB) suspended all its projects in Russia and its ally Belarus.
“The New Development Bank (NDB) applies sound banking principles in all of its operations, as stated in the terms of its agreement,” the bank said in a statement posted on its website on Thursday.
“In view of the ongoing uncertainties and restrictions, the NDB has suspended new transactions in Russia,” it said.
“The NDB will continue to conduct business in full compliance with the highest compliance standards of international institutions,” it said.
The NDB was established by Brazil, Russia, India, China and South Africa (BRICS) to mobilize resources for infrastructure and sustainable development projects in the BRICS and other emerging economies and developing countries.
On Thursday, the China-based AIIB suspended all of its projects in Russia and its ally Belarus.
The bank’s decision was seen as notable given that Russia is its third-largest shareholder. India is the second largest shareholder after China.
Former Reserve Bank of India governor Urjit Patel is vice president of investment operations in Beijing, which is headquartered at the AIIB. The bank is headed by former Chinese vice finance minister Jin Liqun.
As the war in Ukraine unfolds, “our bank is actively monitoring the situation and assessing its impact on AIIB operations and the economies of our member countries,” according to a press release posted on the bank’s website.
“In the context of the changing economic and financial situation, our management will do our best to maintain the financial integrity of the AIIB,” it said.
“In this context, and in the best interest of the Bank, management has decided that all activities related to Russia and Belarus will be suspended and subject to review,” the release said.
The bank has funded several projects in Russia and Belarus.
Explaining its decision to suspend the Russian project, the AIIB said that it is a multilateral organization created by an international treaty and that compliance with international law is at the heart of our institution. ”
“AIIB management believes that multilateralism provides the best framework for countries to cooperate to address common challenges and support development,” it said.
“As the war in Ukraine unfolds, the AIIB sends its thoughts and sympathy to all those affected. Our hearts go out to all who are suffering,” it said.
“The AIIB stands ready to provide financing flexibly and quickly, and to support members directly or indirectly adversely affected by the war,” the release said.
“Economic spillovers from commodity price shocks, financial market volatility and other factors could adversely affect the economic conditions of our members. We will work closely with our partner multilaterals to provide any needed support quickly, “it says.
On Wednesday, the World Bank announced it would “immediately” halt all of its projects in Russia and Belarus in response to Moscow’s military operations in Ukraine and “hostilities” against the people of the war-torn country.
Many countries, organizations and businesses are severing ties and imposing sanctions on Russia for its invasion of Ukraine, as well as for Belarus’ support and cooperation with Moscow. PTI KJV AMS AKJ AMS