Русский
Contracts from international financial organizations will appear on the Russian government procurement website. These include projects being tendered for by several international banks that Russia holds equity and invests in, including the New Development Bank (NDB – formally known as the BRICS Development Bank). The NDB plans to unfreeze investments in Russia — money that is going to be used for BRICS infrastructure projects.
Tenders from the Eurasian Development Bank and the Asian Infrastructure Investment Bank may also appear on the Russian procurement website. Access to electronic government procurement is needed so that the procedure is transparent and competition for these tenders increases.
These changes are being instigated by the Russian Ministry of Economic Development, in order to allow the publication in the Russian Unified Information System to allow data on tenders and procurement by international financial organizations to better inform Russian companies about such projects. This improves the relevant bank’s own tender process and increases competition.
In March 2022, the NDB announced the suspension of transactions in Russia due to sanctions imposed on the country. However, in October 2024, during the Kazan BRICS summit, the Russian Finance Minister Anton Siluanov said that a mechanism for resuming funding had been prepared.
The NDB is preparing to allocate US$1.2 billion of loans for projects in Russia until 2027, with US$336 million already raised. The NDB is implementing four projects in Russia:
- Development of the judicial system of the Russian Federation
- Development of water supply and sanitation systems
- Two (unspecified) programs for the development of small historical settlements
The New Development Bank
The NDB invests in the BRICS and BRICS+ nations and currently includes Algeria, Bangladesh, Brazil, China, Egypt, India, Russia, South Africa, the United Arab Emirates and Uruguay as members. It has a registered capital of US$100 billion and is headquartered in Shanghai. It is primarily involved in clean energy; transport infrastructure; irrigation, water resource management, and sanitation; and sustainable urban development. A list of its development projects can be seen here.
In the future, the Eurasian Development Bank and the Asian Infrastructure Investment Bank may also have their available tenders appear in Russia’s government procurement website.
The Eurasian Development Bank
The Eurasian Development Bank invests in economies, trade and economic ties and integration processes of the countries of this region, and includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. It is headquartered in Almaty. The Bank’s charter capital totals US$7 billion, including US$1.5 billion of paid-in capital and US$5.5 billion of callable capital. The current investment portfolio totals about US$4 billion with a cumulative investment portfolio (including completed projects) of about US$12 billion. 84 projects have been financed.
The Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank is a multinational bank headquartered in Beijing and is designed in part to stimulate financial cooperation among China’s Belt & Road Initiative and the Asia-Pacific region in general. It has 110 members, amongst the largest being China, along with Russia and India. The United States is opposed to the AIIB, believing it to be an unwelcome intrusion on the multilateral financial system and regarding it as a competitor to the IMF. However the AIIB is the world’s second largest multi-lateral development institution. The AIIB has share capital of US$100 billion and is involved in over US$50 billion of investments across 50 countries.
Future BRICS and Eurasian Infrastructure Projects
The creation of new global supply chains as the West moves to become more isolated is resulting in a flurry of international projects related to the development and construction of infrastructure, energy facilities and water supply facilities. Rapidly moving technological advances are also likely to appear in Russian government procurement, especially tenders related to the digitalization of various sectors of the economy, high-tech equipment, the introduction of artificial intelligence, the transition to green energy and the construction of thermal and nuclear power plants.
In addition, tenders may involve the creation of new banking products and financial infrastructure. The BRICS countries are already actively working to create financial services independent of the US dollar, and future projects can be expected to reflect this.
Because of Western sanctions, interaction with Western financial institutions throughout Eurasia has been reducing, however the need for Russia to have access to effective external investment is not going away.
The publication of tenders from international organizations in government procurement will allow Russian companies to have more information about ongoing transactions, which will develop cooperation between these countries. This is especially true against the backdrop of expanding interaction between Russia and the BRICS, as well as with ASEAN, Mercosur, and the African Union.
FDI Into Russia Is Resuming
Also, the emergence of such contracts in government procurement will entail more efficient use of funds allocated by international financial organizations, as Russian companies can be competitive home and abroad. The publication of these tenders will not only increase competition, but may also lead to a reduction in the project costs. Russia is expecting an increase in the number of procurement procedures on the part of the banks concerned, as cooperation with the BRICS countries especially is strengthening. This is an important step from a political point of view as it reflects how closely foreigners fit into the Russian economy – with Russia not sanctioning other countries unless forced to do so in response to the initial actions of unfriendly nations.
The United Nations recognises 193 countries and territories. Of these, 145 have not issued sanctions against Russia.
Further Reading
