Minister of Economic Development of the Russian Federation Alexey Ulyukaev is appointed executive representing Russia in the newly created Asian Infrastructure Investment Bank
Today in Beijing (China) took place the inauguration meeting of Board of Governors of Asian Infrastructure Investment Bank (AIIB). According to head of the Ministry of Economic Development of the Russian Federation Alexey Ulyukaev, AIIB shall become one of the largest financial institutions by the number of participants, countries, projects and size of the capital involved in operations.
Articles of Agreement of setting up Asian Infrastructure Investment Bank officially came into force on December 25, 2015. Russia has duly completed ratification procedures related to constituent documents of the Bank that allow the country to participate in full format in inauguration meetings of AIIB Board of Governors and the Board of Directors.
Alexey Ulyukaev has drew attention to the fact that the Bank is one of the sources of infrastructure finance and practical example of cooperation in Asia-Pacific region. As he said, “it is one of the system decisions that positively affect renovation of the regional economic infrastructure”.
Founders of Asian Infrastructure Investment Bank are 57 countries; of them 37 are referred to the regional member states and 20 – to the non-regional ones. Russia became third by size stockholder of AIIB with stake in its capital equal to 6.54% (after China and India).
Besides, today has took place the official appointment of the Bank’s President Tsing Lutsun. As said the head of the Ministry of Economic Development of the Russian Federation, “He is the former Chinese Deputy Minister of Finance; previously he worked in the World Bank and is well known in financial community. We hope that he would manage to properly arrange the Bank’s activity”.
During the inauguration meeting discussed were the issues related to the framework working documents outlining operation of Board of Governors and election of the Board of Directors. Further on shall be authorized the relevant internal documents that would allow the Bank to proceed to operation.
As noted Alexey Ulyukaev, “to commence the project work, this organizational stage is envisaged to be completed within the first quarter”.
He has noted that AIIB shall create the three-level management system including Board of Governors, Board of Directors and the relevant executive bodies. As he explained, “the Board of Governors shall be in charge of taking principal decisions regarding Bank’s development strategy and its charter documents, whereas the direct authorization of project shall be done by the Board of Directors”.
Results of voting by candidates to hold positions in the Board of Directors shall be officially released tomorrow. As Alexey Ulyukaev explained, “I wouldn’t open a great secret if I say that the Board of Directors shall include one representative of Russia, i.e. executive of the Russian Ministry of Finance Timur Maximov. He is nominated to hold position of director from Russia. As distinguished from the other international organizations such as World Bank and European Bank of Reconstruction and Development, the director position in AIIB is not presuming the full employment”.