The EBRD is currently only supporting its existing projects and clients in Russia. The Bank’s operational approach, following guidance from a majority of Directors, is currently not to undertake any new business in the country.
In Russia we focus on:
Diversifying the economy: private enterprises and private financial institutions that support non-resource sector growth are key for diversification. About 90 per cent of EBRD investments in Russia in 2013 were in the private sector.
Investing in and setting standards for modernisation and innovation: focus is needed on enterprises that innovate, introduce modern new technologies, or upgrade to international standards, particularly with regard to corporate governance, transparency, energy efficiency, inclusion and gender issues. Improving energy efficiency is a key aspect of modernisation across various sectors of the economy.
Supporting privatisation and private sector development: the role of the private sector in the economy needs to increase through strengthening existing private operators; increasing the MSME share in the economy; pursuing transparent and competitive majority privatisation strategies for state-owned companies; conducting policy dialogue on privatisation; and promoting PPPs as a tool to attract more private sector investment into state-dominated sectors.
Increasing economic opportunities in Russian regions: Russia is a federal state whose component regions vary widely in terms of per capita income, unemployment and investment. To promote regional development, it is necessary to support projects and reforms that advance transition in regions that are less advanced than Moscow and St. Petersburg and that are committed to improving the investment climate.
As well as being a country where the EBRD works, Russia is also an EBRD donor. In 2013 the Russian government established its first bilateral Technical Cooperation fund with a contribution of €40 million over five years in support of the EBRD’s core operations in the country. Funding is focused on the development of projects in transport and infrastructure, energy efficiency, agribusiness and SMEs. Russia also remains the biggest donor to the NDEP environmental window with total contributions totalling €60 million.
The EBRD’s latest Russia strategy was adopted on 18 December 2012
Russia's policy response to the coronavirus crisis
The EBRD is monitoring Russia's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
Current EBRD forecast for Russia’s Real GDP Growth in 2022 3.0%
A broad-based recovery saw the Russian economy return to its pre-pandemic level by the second quarter of 2021. Mining activity was strong, and retail sales recovered rapidly following the easing of virus-related restrictions, driven by tighter labour market conditions and rapid retail credit growth. Although there were some signs of slowing in the mining sector at the start of the third quarter, retail sales have remained robust and higher OPEC+ oil production quotas should support mining output in the coming months.
Reflecting the shift in priorities of the authorities towards growth and social welfare, well-targeted social expenditure measures were reintroduced prior to September’s DUMA elections. These measures had initially been introduced alongside President Putin’s constitutional changes last year, and were aimed at those groups more likely to spend than save, notably families, children, pensioners and the military.