BRICS Hour: New Development Bank may resume lending to Russia
In 2027, the New Development Bank, created by BRICS members, may resume lending to Russian projects — $84.4 million has been allocated to the federal budget, according to the conclusion of the Accounting Chamber on the treasury project. International investments should go towards the development of small historical towns and the judicial system. Despite the relatively small amount, this is important because it will be the first step towards restoring cooperation — the NBR froze investments back in 2022. The Finance Ministry said that options for resuming financing have already been found, and negotiations with the bank will continue. What such a restoration of cooperation means for the Russian Federation is in the Izvestia article.
How much money will the NBR allocate to Russia
In the financial plan for the next three years, the Russian authorities have planned to attract targeted foreign loans from international financial organizations. This follows from the conclusion of the Accounting Chamber, which was analyzed by Izvestia. The new Development Bank may allocate $84.4 million (7.4 billion rubles) to Russian projects, the document says.
The New Development Bank (NDB, formerly known as the New BRICS Development Bank) was established in 2014 by the BRICS Five. Its headquarters are located in Shanghai, and the initial authorized capital is $100 billion. The purpose of the organization's activities is to finance infrastructure projects in the Alliance states. Currently, it includes 10 countries: Brazil, Russia, India, China, South Africa, Bangladesh, the United Arab Emirates, Egypt, Algeria, and Uzbekistan. In March 2022, the NBR announced the suspension of the disbursement of funds to the Russian Federation in connection with the sanctions imposed on the country.
According to the conclusion of the Accounting Chamber, in 2027, they want to spend money from a financial organization on two large programs.:
- It is planned to allocate $53.7 million (about 4.7 billion rubles) for the project "Integrated development of the territory and infrastructure of small historical settlements" in 2027. The second phase was approved in June 2020. The funds will be used to develop the infrastructure of eight small towns in the European part of Russia, preserve cultural heritage, and boost tourism and the local economy.
- Another $30.7 million (approximately 2.7 billion rubles) is provided for the development of the judicial system. The project was approved in August 2017 and provides for the modernization of the judicial infrastructure and the introduction of modern information technologies.
The financing included in the budget reflects the expected limits on open loans, the press service of the Ministry of Finance told Izvestia. They clarified that the possibility of direct income from the NBR depends on the sanctions regime, since the bank's operating model is linked to Western financial markets. At the same time, Russia has not refused loans, and options for resuming financing have already been found. The agency added that negotiations with the bank on this issue will continue.
Earlier, in mid-May 2026, Finance Minister Anton Siluanov also stated that the Board of Governors of the NBR had found ways to resume financing projects in Russia. Then he clarified that Moscow was satisfied with the decisions, and possible receipts would amount to "billions of dollars."
The press service of the department told Izvestia that the NBR strategy for 2027-2031 includes a number of priority areas for the country.
— First, strengthening the role of the NDB as the leading multilateral development bank for the countries of the Global South. Secondly, the expansion of operations in the national currencies of the borrowing countries and the Bank's financial instruments. Thirdly, the introduction of advanced technologies and innovations in NDB projects, as well as the development of technological cooperation between member countries. Fourth, nuclear energy is one of the key energy transition solutions," the Finance Ministry explained.
Russia will continue to work in the governing bodies of the NBR to participate in the implementation of tasks in these areas. Andrey Bokarev, General Director of the Eurasian Regional Center of the New Development Bank, confirmed to Izvestia that cooperation with Russia is developing according to the approaches agreed by the parties, including taking into account the bank's new strategy adopted in September.
Our country has already accumulated significant experience in conducting international settlements bypassing Western financial systems, said Anna Fedyunina, Associate Professor at the HSE Faculty of Economics. One of the main mechanisms is the transition to national currencies, primarily rubles and yuan in trade with China. In addition, the development of the BRICS Pay platform is being discussed again, which will connect the national payment systems of the countries of the association and its new participants, the economist explained.
At the same time, the NBR reduces its dependence on Western capital markets, which was one of the reasons for the termination of financing of Russian projects in 2022, said Anna Fedyunina. Therefore, the resumption of lending to Russia depends not so much on the lifting of sanctions as on the ability of the NBR to build a stable and legally protected scheme of financial interaction with the Russian side.
How important are NBR loans for the budget
In general, the amount of 7.4 billion rubles looks small compared to other budget expenditures, Anna Fedyunina emphasized. For example, in the next three years, the authorities plan to allocate 4.4 trillion rubles for road construction, 65.3 billion rubles for public transport upgrades, and 135.7 billion rubles for the Stanki national project.
However, the financial organization's support is important primarily from a political point of view.: This shows that the bank is looking for ways acceptable to both sides to continue cooperation with Russia, the expert believes.
The provision of funds will also create an additional channel of interaction with other participants of the New Development Bank, said Vladimir Bragin, Director of Financial Markets and Macroeconomics at Alfa Capital Management Company. The NBR serves as a platform for dialogue and promotion of Russian interests.
Russia actively cooperated with the NBR until 2022. The bank's website says, in particular, that it has funded four major projects. Among them, for example, "Modernization of the water treatment and sanitation system in the Volga region" and "Overcoming the consequences of the COVID-19 pandemic," Andrey Bokarev, General Director of the Eurasian Regional Center of the New Development Bank, told Izvestia.
Apparently, Russia has yet to pay off these loans. The Accounting Chamber noted that in 2027, the amount of payments against the debt to the financial organization will amount to $ 60.7 million (5.3 billion rubles), in 2028 — $79.3 million (almost 7.3 billion), and in 2029 — $79.6 million (7.6 billion). As Igor Rastorguev, a leading analyst at AMarkets, explained, the repayment of previously provided loans continues, since the termination of new disbursements does not cancel obligations on loans already received.
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