Russia Looking to Sue EBRD
- New Europe Investor
- July 14, 2016
Russia has plans to sue the European Bank for Reconstruction and Development according to the Interfax news agency.
The reason stems from the closure of its office in July 2014 as Western led sanctions were being imposed on the country.
Interfax sources stated that Russia had tolerated the closure for two years, but now was the time for legal action.
A letter has been sent to the bank by the Russian government saying that the closure contravenes Russia’s rights as a shareholder in the bank. Interfax reported that the letter was sent by Alexei Ulyukayev, Russia’s Economic Development Minister.
Russia had been one of the largest recipients of funding from the EBRD, but the 2014 closure effectively put a halt to this.
Sanctions have recently been extended until the end of the year. Analysts suggest the move by Russia is aimed at testing European Union resolve following the Brexit vote.
Slovakia, who currently hold the EU presidency, say the sanctions are ‘untenable’.