Statement on Russia’s invasion of Ukraine and threat of war

CEE Bankwatch Network strongly condemns the Russian government’s military invasion and annexation of Crimea and Sebastopol. We hope that in the end the voices of those who have been demonstrating for peace in Moscow and elsewhere, in both Russia and Ukraine, will prevail.

The European Union has already responded to the Crimean declaration of independence by announcing travel bans and bank account freezes for 48 individuals from Russia and Ukraine linked to the Crimean breakaway.

Bankwatch argues that, as a part of the EU response, the two European public banks, the European Investment Bank and the European Bank for Reconstruction and Development, should suspend lending to Russia at least until a solution that is acceptable to both Ukraine and Russia is negotiated for this crisis.

Both institutions have been lending to Russia for years, with the EBRD currently dedicating almost a third of its portfolio to this country.

If the two banks are to resume lending, they should do so after having reviewed their lending practices in such a way as to ensure that the public financing they are channeling to Russia is used to address the concerns of the poorest. Too much of the banks’ lending at the moment serves instead the business interests of Russian elites or foreign corporations without ever trickling down and on occasion even propping up the authoritarian regime.