European Union governments have discussed halting or restricting funding for new projects in Russia through two multilateral lenders, as they seek to raise pressure on Moscow to support a peace plan for Ukraine, officials said Thursday (3 July).
Officials have looked into stopping lending for Russian projects through the EU’s bank, the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD), an EU diplomat and a German government source said.
No decisions have been made, but the German source indicated that discussions could restart if no agreement was reached by the end of the week on establishing a ceasefire and de-escalating the situation in eastern Ukraine.
But a senior source at the EBRD said the bank’s main government shareholders did not want it to stop lending in Russia.
Taking action at the EBRD would also be complicated, as Russia is one of 64 countries that are shareholders of the bank.
Russia has traditionally been the biggest recipient of the London-based EBRD’s funds - it lent €1.8 billion there last year. The EIB pledged to lend more than €1 billion to Russia last year.
For months, the EU has threatened to impose tough economic sanctions on Russia unless it helps to reduce tensions in eastern Ukraine, where hundreds have been killed in clashes between government forces and pro-Moscow rebels.
So far, the EU has imposed measures targeting around 60 people in Russia and Ukraine with asset freezes and travel bans, as well as two energy companies in Crimea, to punish Moscow for taking over the Ukrainian peninsula earlier this year.
But the 28 EU member states have been divided about pressing ahead with more far-reaching measures, with some governments fearing retaliation from a major energy supplier. (more)
Read the whole story: http://www.euractiv.com/sections/global-europe/eu-mulls-halting-eib-ebrd-funding-moscow-303290
Source: EurActiv