Eurasian Development Bank
The Eurasian Development Bank (EDB) is a multilateral development institution founded in January 2006 by Russia and Kazakhstan to foster economic integration and sustainable development across Eurasia.[1][2] Headquartered in Almaty, Kazakhstan, the EDB finances infrastructure, transport, energy, agriculture, and digitalization projects in its member states, with a current investment portfolio of approximately US$4.85 billion and a cumulative portfolio exceeding US$15.3 billion as of recent figures.[3] Its charter capital stands at US$8.5 billion, supporting initiatives that enhance regional connectivity, such as the Eurasian Transport Network and agricultural value chains.[4][5] The bank's seven member states—Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan (which joined in September 2025 as the third-largest shareholder)—represent a population of 187 million and emphasize post-Soviet economic ties amid broader Eurasian cooperation.[3][6] Russia's dominant shareholding has prompted discussions to dilute its stake below 45% since 2023, reflecting geopolitical pressures including Western sanctions on Russian entities, though the EDB itself has largely evaded direct financial restrictions to continue operations.[7][8] Key achievements include over 90 active or planned projects in Central Asia valued at around US$53 billion, focusing on transit corridors that have seen 70% growth in regional flows, alongside efforts in water management and green energy to address scarcity and sustainability challenges.[9][10]History
Founding and Initial Establishment (2006–2010)
The Eurasian Development Bank (EDB) was founded as a multilateral development institution through an interstate agreement signed on January 12, 2006, in Astana by authorized representatives of Russia and Kazakhstan, at the initiative of their respective presidents.[11][12] The agreement established the Bank's charter and operational framework, with its headquarters located in Almaty, Kazakhstan.[13] Russia and Kazakhstan served as the initial shareholders, contributing to the Bank's authorized capital and providing the foundational governance structure, with Russia holding the controlling interest.[14] The EDB commenced operations in June 2006, focusing on long-term financing for infrastructure and industrial projects to support economic development and integration across Eurasia.[2] Its core mandate emphasized lending to public and private entities for large-scale investments in sectors such as transport, energy, and manufacturing, primarily within the territories of its founding members.[15] Early activities prioritized bilateral cooperation between Russia and Kazakhstan, aligning with broader regional economic ties amid post-Soviet realignments, though specific project approvals remained limited in the initial years due to institutional setup.[16] Membership expansion marked key developments in this period. In 2009, Armenia and Tajikistan acceded as full members, increasing the Bank's geographic scope and capital commitments.[17] Belarus joined in 2010, further broadening the shareholder base and enabling project financing in additional Eurasian states.[17] These accessions reflected the Bank's evolving role in fostering multilateral ties, with shareholdings adjusted proportionally to new contributors while maintaining Russia and Kazakhstan's dominant positions.[14] By 2010, the EDB had approved initial investments, including support for industrial modernization efforts, though its portfolio remained modest compared to later expansions.[18]Expansion and Institutional Reforms (2011–2020)
The Kyrgyz Republic acceded to full membership in the Eurasian Development Bank on January 1, 2011, marking the final expansion of the institution's shareholder base during this period and aligning its participants more closely with emerging Eurasian economic unions.[17] This addition brought the total to six member states—Russia, Kazakhstan, Belarus, Armenia, Tajikistan, and Kyrgyzstan—enabling broader regional project financing focused on integration effects. The EDB's Development Strategy for 2011–2013, approved by the Bank's Council on December 10, 2010, prioritized operational scaling, targeting an investment portfolio of US$4.36 billion by year-end 2013 through financing of infrastructure, industry, and trade projects with cross-border benefits.[19] This objective was met ahead of schedule, reflecting institutional maturation and increased lending capacity amid post-crisis recovery in member states.[20] In June 2013, the Council approved a successor strategy extending to 2017, which shifted emphasis toward enhancing the EDB's comparative advantages in Eurasian integration by prioritizing high-impact sectors like transport corridors and energy interconnectivity.[20] A revised version, formalized in 2014, addressed structural challenges such as higher financing costs relative to peers and limited capital market access, advocating for diversified funding sources and stricter project selection criteria to mitigate risks while amplifying developmental outcomes. By 2015, founder states directed further strategic refinements to concentrate resources on large-scale infrastructure, including power and transport, reducing diversification into smaller-scale or non-integrative lending to optimize impact amid evolving regional priorities.[21] These reforms solidified the EDB's governance framework, with Council decisions emphasizing measurable integration metrics and performance-based portfolio growth, culminating in sustained annual approvals for project pipelines exceeding prior benchmarks by the decade's end.Recent Developments and Adaptations (2021–Present)
In response to evolving geopolitical and economic challenges, including Western sanctions on Russia following the 2022 invasion of Ukraine, the Eurasian Development Bank (EDB) adopted a new strategic framework for 2022–2026 aimed at enhancing regional integration within the Eurasian Economic Union (EAEU) and beyond. This strategy prioritizes three mega-projects: the Central Asian Water and Energy Complex for improving cross-border resource management; the development of Eurasian transport corridors to facilitate trade connectivity; and initiatives to bolster industrial and technological self-sufficiency among member states.[22][23] Membership expansion marked a significant adaptation, with Uzbekistan approving a plan on September 19, 2025, to acquire shares and formally initiate accession, positioning it as the seventh member state by late 2025 or early 2026. This move aligns with EDB's goal of broadening its footprint in Central Asia amid strained relations with Western financial institutions, building on prior interest expressed in 2024 when the bank's investment portfolio reached $4.8 billion across 78 projects in existing members. By October 2025, the EDB was financing 79 projects across six member states—Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan—focusing on infrastructure resilience.[24][25][3] To diversify funding sources away from traditional Western markets, the EDB issued bonds totaling 200 million UAE dirhams (approximately $54 million) in the United Arab Emirates on July 3, 2025, targeting increased investment in Central Asian transport and energy sectors. This issuance reflects adaptations to global isolation pressures, enabling continued project approvals such as transport network enhancements outlined in a June 2024 EDB report on Eurasian connectivity. Concurrently, the bank's September 2025 analysis highlighted a 17% decline in overall Eurasian international financial institution investments, attributing it to a pivot toward green energy transitions and a boom in Central Asian projects, with EDB positioning itself to fill gaps in regional financing.[26][27][28] Research efforts intensified to support adaptive infrastructure, including a October 23, 2025, study documenting accelerated warehousing development in Eurasia from 2021 to early 2025, driven by logistics demands in trade corridors. An October 7, 2025, report emphasized climbing the technological ladder to unlock industrial potential, recommending policy alignments for digital and high-tech integration. These publications, alongside macroeconomic forecasts projecting moderate GDP growth for members like Kazakhstan at 5.5% in 2025, underscore EDB's role in evidence-based regional stabilization amid external shocks.[29][22][30]Membership and Governance
Current Member States
The Eurasian Development Bank currently has seven member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.[31] Russia and Kazakhstan founded the bank in 2006 and hold the largest equity stakes, at 44.8% and 37.3% respectively, following a 2023 capital redistribution that reduced Russia's share while increasing those of the other members proportionally.[32][33] Armenia and Tajikistan joined in 2009, Belarus in 2010, and Kyrgyzstan in 2011.[17] Uzbekistan acceded on April 10, 2025, as the seventh member, securing a 10% stake that positioned it as the third-largest shareholder.[34] The remaining equity, approximately 7.9%, is distributed among Armenia, Belarus, Kyrgyzstan, and Tajikistan, with each adjusted upward in the 2023 redistribution to roughly equal portions around 2% prior to Uzbekistan's entry, though exact post-accession figures reflect minor proportional adjustments.[33][35]| Member State | Accession Year |
|---|---|
| Russia | 2006 |
| Kazakhstan | 2006 |
| Armenia | 2009 |
| Tajikistan | 2009 |
| Belarus | 2010 |
| Kyrgyzstan | 2011 |
| Uzbekistan | 2025 |
Accession Processes and Potential Members
The accession of new members to the Eurasian Development Bank (EDB) is regulated by the Bank's Council-approved Regulations for the Admission of New Members, which outline a structured procedure applicable to sovereign states and international organizations aligned with the EDB's objectives of promoting sustainable development in Eurasia.[36] Prospective members initiate the process by submitting a formal written request to the Chairman of the EDB Council, triggering preliminary consultations where the Bank evaluates the applicant's compatibility, negotiates terms such as share subscriptions, and secures provisional approval by a three-fourths majority vote of the Council.[36] Following this, the applicant submits a detailed application specifying the size and payment terms of its subscribed shares—comprising paid-in capital (immediately payable) and shares on call (payable under Council-defined conditions, with a face value of $1,000 per share)—after which the Council renders a final admission decision by the same three-fourths majority, potentially adjusting the Bank's authorized capital and redistributing shares among existing members.[36] Admission becomes effective upon the applicant's accession to the 2006 Agreement Establishing the Eurasian Development Bank, deposit of the instrument of accession with the designated depository, completion of share payments, and—for states—execution of a headquarters agreement ensuring the Bank's operational presence.[36] New members gain rights to appoint one representative and one alternate to the Council, with voting power proportional to their subscribed shares, and must adhere to the Bank's charter regarding contributions to capital increases.[36] The EDB remains open to expansion, with the Council holding ultimate discretion over approvals to ensure alignment with institutional goals.[31] Uzbekistan exemplifies a recent successful accession, with the Council approving its membership on July 16, 2024, following negotiations on a 10% shareholding stake; the process culminated in President Shavkat Mirziyoyev signing the accession law on April 10, 2025, making Uzbekistan the seventh full member state and enabling its participation in EDB financing and governance.[34] This expansion increased the Bank's capital base and extended its focus to Central Asian infrastructure and trade integration.[34] As of 2025, EDB leadership has expressed interest in further enlargement, identifying Azerbaijan, Turkmenistan, and Mongolia as potential partners due to their geographic proximity and complementary economic profiles in Eurasian connectivity projects.[37] EDB Chairman Nikolai Podguzov highlighted Azerbaijan specifically as a prospective significant shareholder, citing opportunities for non-sovereign investments and regional cooperation, though no formal applications from these countries have been publicly confirmed.[38] Such accessions would require Council consensus on share allocations and could enhance the Bank's role in cross-border initiatives, but prospects remain contingent on applicants' willingness to meet capital commitments and strategic alignment.[37]Organizational Structure and Decision-Making
The Eurasian Development Bank operates under a governance framework defined in its Constituent Agreement, featuring the Council as the supreme managing body, the Executive Board as the permanent executive organ accountable to the Council, and the Chairman of the Executive Board responsible for day-to-day management.[11] The Council determines the Bank's principal directions of activity, admits new members, approves annual budgets and balance sheets, and authorizes capital increases or amendments to the Charter.[11] It convenes at least twice annually, with provisions for extraordinary sessions and voting by correspondence if needed, requiring a quorum of representatives holding three-quarters of the total votes.[11] Each member state appoints one plenipotentiary representative to the Council, along with a deputy, typically high-level officials such as finance ministers or prime ministers; as of December 31, 2024, the Council was chaired by Kazakhstan's Prime Minister Olzhas Bektenov.[11][14] Council decisions are made by a simple majority of votes, with each paid share in the Bank's charter capital—valued at US$1,000—entitling the holder to one vote, ensuring proportionality to shareholdings; certain critical matters, such as Charter amendments or the Chairman's dismissal, require a three-quarters majority.[11][17] As of year-end 2024, voting power reflected share distribution, with Russia at 44.79%, Kazakhstan at 37.29%, Belarus at 5.21%, and smaller portions for Armenia, Kyrgyzstan, and Tajikistan.[14] The Executive Board, whose size is determined by the Council, implements strategic directives, develops operational programs, evaluates investment proposals, and sets service tariffs; it meets at least bimonthly, with decisions by majority vote among attending members (quorum of two-thirds), and the Chairman holding a casting vote in ties.[11] Board members are appointed by the Council for terms aligned with its strategy cycles.[11] The Chairman, elected by the Council for a four-year term (extendable), directs operations, represents the Bank externally, and leads the Executive Board; Nikolai Podguzov has held this position, with his term extended in 2024.[11][14] This structure supports consensus-oriented decision-making weighted by economic contributions via shares, while auxiliary committees—such as those for strategy, human resources, and budget—advise the Council on specialized matters.[14]Strategic Objectives
Core Mission and Long-Term Goals
The Eurasian Development Bank (EDB) defines its core mission as promoting the development of market economies in its member states, fostering sustainable economic growth, and expanding trade and economic cooperation between them. This objective is pursued through financing integration-oriented infrastructure and industrial projects that enhance connectivity and mutual economic dependencies across Eurasia. Established under the auspices of the Eurasian Economic Union framework, the EDB prioritizes initiatives that align national development agendas with regional integration, emphasizing long-term economic resilience over short-term aid.[39] In its Strategy for 2022–2026, the EDB outlines long-term goals centered on scaling operations to achieve a cumulative investment volume of US$10.9 billion by 2026, positioning itself as the leading development institution in the region with annual investments reaching US$3 billion. Key targets include increasing the share of projects generating integration effects to 70% of the credit investment portfolio and quadrupling the investment portfolio in smaller member economies such as Armenia, Kyrgyzstan, and Tajikistan, with a dedicated US$500 million allocation for sustainable development goals (SDGs) in these states. The strategy also aims to diversify financing instruments, targeting non-sovereign lending below 70% of the portfolio and a five-fold expansion in equity investments to support private sector involvement in high-impact projects.[40] Central to these goals are three flagship regional mega-projects: the Europe–Western China transport corridor to bolster logistics and transit infrastructure; a unified commodity distribution system to integrate agricultural and industrial supply chains; and the Central Asian water-energy complex to address resource scarcity and energy security. These initiatives, backed by US$1.2 billion in planned investments, target priority sectors including transport, manufacturing, environmental protection, energy, and digital infrastructure, with an emphasis on attracting co-financing from international partners to amplify regional economic multipliers.[40] The EDB's approach underscores a causal focus on infrastructure as a driver of trade volumes and GDP growth, while adapting to geopolitical shifts by enhancing financial sovereignty through domestic capital market mobilization.[40]Alignment with Eurasian Integration Initiatives
The Eurasian Development Bank (EDB) aligns its operations with the Eurasian Economic Union (EAEU) by financing infrastructure and industrial projects that enhance intra-regional trade and connectivity among member states. This includes support for initiatives like the development of unified transport corridors and energy networks, which facilitate the free movement of goods, services, capital, and labor within the EAEU framework established in 2015.[41][42] A core strategic goal of the EDB is to reinforce its role as a key financial institution for EAEU+ integration, encompassing observer states and potential partners, through targeted investments exceeding $10.9 billion in mega-projects by 2025. These efforts prioritize digital infrastructure, cross-border logistics, and industrial cooperation to deepen economic interdependence, as outlined in the Bank's 2021–2025 strategy. On March 15, 2024, the EDB signed an agreement with the Eurasian Economic Commission to coordinate financing for promising industrial projects, focusing on supply chain integration and export enhancement.[43] The EDB's Centre for Integration Studies serves as a primary analytical hub, producing reports that evaluate the macroeconomic impacts of Eurasian integration and recommend policy measures to mitigate barriers such as non-tariff restrictions. These studies, including assessments of trade flows and investment gaps post-2015 EAEU Treaty, inform EAEU decision-making and underscore the Bank's non-lending contributions to regional cohesion.[44][42] While the EDB's primary focus remains EAEU-centric, it explores synergies with broader Eurasian forums like the Shanghai Cooperation Organisation (SCO), potentially collaborating on connectivity financing through emerging mechanisms such as the proposed SCO Development Bank. However, such alignments are nascent and secondary to EAEU priorities, with no formalized commitments as of 2025.[45]Operational Activities
Project Financing and Investment Focus
The Eurasian Development Bank (EDB) primarily finances investment projects that promote economic integration among its member states, with a focus on sectors that enhance connectivity, sustainability, and industrial development. Key priority areas include transport infrastructure, energy (particularly green and renewable sources), digitalization, agriculture, and industry, selected for their potential to generate cross-border benefits and support regional trade.[46][15] The Bank's lending criteria emphasize projects with an "integration effect," meaning those that facilitate the movement of goods, services, capital, and people across Eurasia, aligning with its mandate to foster sustainable economic growth.[43] As of the latest available data, the EDB's active portfolio comprises 79 projects across six member states, totaling significant commitments in infrastructure and resource-based industries. Transport and logistics account for a substantial portion, exemplified by contributions to the Eurasian Transport Network initiative, which encompasses over 300 infrastructure developments projected to require more than $234 billion in investments by 2035. Energy projects, including hydropower and renewable facilities, form another core focus, with the Bank's cumulative green project portfolio reaching approximately $1.7 billion, incorporating ESG assessments for carbon footprint and social impact.[3][47][48]| Sector | Share of Portfolio (Approximate) | Examples of Financed Projects |
|---|---|---|
| Transport Infrastructure | Major focus (part of mega-projects) | Eurasian Transport Network components, including rail and road connectivity[48] |
| Energy (incl. Green/Renewable) | Significant, with $1.7B cumulative in green | Hydropower plants in Kyrgyzstan; energy efficiency in Central Asia[49][47] |
| Agriculture and Food Security | Targeted via mega-projects | Eurasian Agricultural Goods initiative for supply chain enhancement[50] |
| Industry (Chemical, Metallurgy) | 5-7% | Petrochemical and metallurgical facilities with regional supply links[3] |
| Digitalization and Utilities | Growing emphasis | Broadband and municipal infrastructure upgrades[46] |
Research and Analytical Contributions
The Eurasian Development Bank (EDB) operates a specialized research team focused on macroeconomics, regional cooperation, infrastructure development, and the role of international financial institutions in Eurasia. This analytical work supports the bank's mission by generating empirical data and forecasts to inform investment decisions and policy recommendations for member states. The team's outputs include working papers, macroeconomic reviews, and sectoral studies that emphasize quantitative modeling and evidence-based assessments of regional trends.[53][54] Central to these contributions is the EDB Centre for Integration Studies, established in 2011 as a dedicated think tank within the bank. The Centre conducts applied quantitative and qualitative research on Eurasian economic integration, with a particular emphasis on macroeconomic modeling within the Eurasian Economic Union (EAEU) framework. Its activities involve tracking integration metrics, analyzing trade barriers, and evaluating investment interactions to provide actionable insights for deepening regional ties. Breakthrough projects include the Monitoring of Mutual Trade in Goods and Services in the EAEU and the EDB System of Indicators of Eurasian Integration, a comprehensive index developed by 2009 to measure progress in post-Soviet economic cooperation across dimensions like trade, finance, and infrastructure.[55][56][54] The Centre produces flagship annual reports, such as the "Eurasian Economic Integration" series, which assess key events, policy decisions, and developmental vectors in the region. For instance, the 2017 edition detailed integration advancements amid exchange rate fluctuations and currency challenges in the EAEU from 2014–2015, using data on trade volumes and economic interdependencies. Other notable publications include the Integration Business Barometer, which surveys large and medium-sized enterprises across Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia to gauge business sentiment on integration barriers and opportunities, as in the 2022 report highlighting post-pandemic recovery dynamics.[44][57][58] In macroeconomic analysis, the EDB issues periodic reviews of EAEU performance, documenting aggregate GDP growth of nearly 4% in the bank's region as of early 2024 despite global uncertainties, driven by export resilience and domestic demand. Sectoral and regional reports further extend this scope; a 2023 analysis on Central Asia's economy examined growth drivers like resource exports and remittances, proposing enhanced intra-regional collaboration. These contributions, disseminated through public reports and policy briefs, prioritize data from official statistics and econometric models to advocate for integration-enhancing reforms, though their alignment with EAEU priorities reflects the bank's foundational ties to Russia and Kazakhstan.[59][60][61]Technical Assistance and Capacity Building
The Eurasian Development Bank (EDB) operates a Technical Assistance Fund (TAF) that provides non-reimbursable grants to support project preparation, feasibility studies, and institutional capacity enhancement in its member states, with a cumulative portfolio of 105 projects amounting to $15.3 million as of recent reports.[62] This fund targets areas such as public-private partnerships (PPP), infrastructure development, and sustainable finance, aiming to bridge knowledge gaps and improve project bankability before full investment.[63] EDB's capacity-building initiatives emphasize training and knowledge transfer, including seminars for government officials on PPP mechanisms; for instance, in 2022, the TAF financed a seminar in the Kyrgyz Republic to enhance skills in infrastructure PPP implementation.[63] Similar efforts expanded in 2025, with a comprehensive PPP training program launched in Kyrgyzstan targeting approximately 200 participants from government, municipalities, and the private sector to foster qualified professionals in project management.[64] In Tajikistan, EDB initiated a PPP capacity-building project in September 2025 to strengthen institutional frameworks for private sector involvement in public infrastructure.[65] These programs often include the establishment of dedicated facilities, such as branded auditoriums at universities in Kyrgyzstan and Armenia for ongoing education in investment analysis and PPP, equipping participants with practical tools for economic diversification.[66][67] Beyond standalone training, EDB collaborates on knowledge-sharing platforms, including joint webinars and workshops; a 2025 webinar with India Exim Bank focused on trade finance's role in Eurasian connectivity, while partnerships like the one with AAOIFI enable Islamic finance training to deepen regional expertise.[68][69] In Central Asia, a 2025 project with UNESCAP facilitated experience exchange in operational control systems, enhancing professional competencies through targeted exchanges rather than broad seminars.[70] Additionally, TAF support extended to developing secondary raw materials markets in 2025, providing technical expertise to promote circular economy practices aligned with sustainable development goals.[71] These activities prioritize measurable outcomes, such as improved project pipelines, though their long-term impact depends on recipient countries' implementation amid varying institutional capacities.[72]Specialized Funds and Initiatives
The Eurasian Development Bank operates the Fund for Digital Initiatives (FDI), established on June 30, 2020, to finance and support digital transformation projects across its member states, emphasizing integration of national digital infrastructures and capability building in emerging technologies.[73] The fund provides grants for initiatives that enhance public administration, artificial intelligence applications, and sector-specific digital solutions, with a focus on Eurasian economic integration; its initial capital was contributed by EDB shareholders, enabling non-reimbursable financing for projects deemed strategically important.[74] By 2025, the FDI had funded multiple projects, including the development of AI SuperCloud, an international AI platform aimed at cross-border data processing and machine learning collaboration among member states.[75] Key FDI-supported initiatives include the GovStack project, launched in January 2025 to digitize public administration in Commonwealth of Independent States (CIS) countries through modular, open-source digital building blocks for government services.[76] In Tajikistan, the fund backed the Dushanbe e-map digital platform in October 2025, integrating geospatial data for urban planning, public services, and emergency response in the capital.[77] Kazakhstan received FDI grants for QazSu, a national water resources management system deployed in April 2025, utilizing AI for monitoring and optimization, and for an AI tool to analyze citizen requests, implemented in October 2025 to improve government responsiveness.[78][79] Beyond digital efforts, EDB maintains specialized initiatives in sustainable development, with a dedicated emphasis on "green" financing to support environmentally oriented projects in energy efficiency, renewable sources, and climate adaptation within its investment portfolio.[15] These green initiatives align with broader operational priorities, channeling funds into infrastructure that reduces carbon emissions and promotes resource conservation, though they operate as thematic streams rather than standalone funds with separate governance structures.[15] The bank's approach prioritizes projects with measurable ecological impacts, often co-financed through partnerships, reflecting a strategic pivot toward sustainability amid regional energy transition needs.[15]Financial Performance
Capital Structure and Funding Sources
The Eurasian Development Bank's authorized capital totals US$7 billion, consisting of 7 million shares with a par value of US$1,000 each, of which US$1.5 billion represents paid-in capital and US$5.5 billion callable capital.[3][35] This structure aligns with common multilateral development bank practices, where the paid-in portion provides liquid funding for operations while callable capital serves as a contingent backstop to enhance lending capacity and creditworthiness.[80] Share capital is subscribed by member states according to their allocated shares, with contributions paid in phases for the paid-in portion. Russia holds the largest stake at approximately 44.8%, followed by Kazakhstan at 37.3%, reflecting a 2023 redistribution that reduced Russia's previous 66% share by reallocating portions to other members including Armenia (increased to 4.23%), Belarus, Kyrgyzstan, and Tajikistan.[81][82] Uzbekistan joined as a shareholder in September 2025, acquiring 777,777 shares (about 11% of total capital) with an initial paid-in commitment of US$168.4 million, payable in installments starting with US$10 million that year.[6][83] Beyond equity capital, the Bank raises funds through debt instruments to support its lending activities, including Eurobonds under its Euro Medium Term Notes (EMTN) programme and local-currency bonds. Notable issuances include a debut 185 million AED (approximately US$50 million) three-year bond at 6.5% coupon placed in Kazakhstan in April 2025 and a 200 million UAE dirham (US$54 million) private placement in the UAE in July 2025 to finance Central Asian projects.[84][85] The Bank also secures co-financing from partners, such as a US$1 billion framework agreement with the Asian Development Bank signed prior to 2025 for joint project funding.[52] These market-based sources diversify funding and leverage the Bank's capital base, though exposure to currency and interest rate risks is managed through liquid investments in high-rated securities like U.S. Treasuries.[86]Key Financial Metrics and Trends
The Eurasian Development Bank's authorized charter capital stands at US$8.5 billion, comprising US$1.5 billion in paid-in capital, US$0.9 billion in additional paid-in capital, and US$6.1 billion available on call, as of December 31, 2024.[14] Total assets totaled US$5.99 billion at year-end 2024, reflecting a 26.6% decline from US$8.17 billion in 2023, following a peak of approximately US$8.43 billion at the end of 2022.[14] This contraction aligns with a reduced exposure to Russian projects, whose share in the investment portfolio fell to 11% in 2024 from 41% in 2021, amid geopolitical pressures including Western sanctions.[14] Net profit rose to US$229.3 million in 2024, an 83% increase from US$125.2 million in 2023 and a substantial recovery from US$30.7 million in 2022, driven by diversified operations and cost management.[14] Return on average equity (ROAE) reached 10.9% in 2024, surpassing the bank's strategic target of 2.4%.[14] Equity grew to US$2.3 billion by the end of 2024.[14] The current investment portfolio stood at US$4.6 billion as of December 31, 2024, supporting 305 projects with a cumulative volume of US$16.5 billion since inception; annual investments amounted to US$2.4 billion in 2024, contributing to a three-year cumulative of US$6.6 billion from 2022 to 2024.[14] Loans to customers decreased to US$2.05 billion in 2024 from US$2.36 billion in 2023, while the balance-sheet portfolio contracted to US$2.6 billion from US$3.0 billion over the same period.[14] Notable growth occurred in non-Russian member states, with the portfolio in Armenia, the Kyrgyz Republic, and Tajikistan expanding 50% year-over-year to US$435 million.[14] Projects aligned with Sustainable Development Goals comprised 30.9% of the portfolio, exceeding the 15% target.[14]| Key Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Assets (US$ billion) | 8.43 | 8.17 | 5.99[14] |
| Net Profit (US$ million) | 30.7 | 125.2 | 229.3[14] |
| Current Investment Portfolio (US$ billion) | N/A | ~3.0 (balance-sheet) | 4.6[14] |
| Annual Investments (US$ billion) | N/A | N/A | 2.4[14] |
Credit Ratings and Risk Assessment
The Eurasian Development Bank (EDB) has received credit ratings from several international and national agencies, with assessments varying significantly based on geopolitical considerations, particularly following Russia's invasion of Ukraine in 2022, which led to sanctions affecting the bank's Russian exposure. Standard & Poor's (S&P) affirmed EDB's long-term issuer credit rating at 'BBB-' and short-term at 'A-3' in May 2024 before suspending the ratings for business reasons, citing the bank's closer ties to Russia than anticipated, including Russia holding 45% of share capital and 22% of the investment portfolio in Russia-based entities as of year-end 2023.[87] Fitch Ratings downgraded EDB to 'B' from 'BB+' in March 2022 amid heightened sanctions risks and macro-financial shocks, maintaining a negative rating watch before withdrawing the ratings entirely in May 2022 due to the ongoing Russia-Ukraine conflict.[88] [89] Moody's placed EDB's ratings under review for downgrade in February 2022 but has not issued subsequent public affirmations or updates.[90]| Agency | Rating Type | Level | Outlook/Status | Date of Latest Action |
|---|---|---|---|---|
| S&P Global | Long-term Issuer | BBB- | Suspended (negative outlook prior) | May 2024[87] |
| S&P Global | Short-term Issuer | A-3 | Suspended | May 2024[87] |
| Fitch | Long-term IDR | B (withdrawn) | Withdrawn (negative watch prior) | May 2022[89] |
| ACRA | International Scale | A | Stable | April 2025[91] |
| ACRA | National (Russia) | AAA(RU) | Stable | April 2025[91] |
| CCXI | Local Scale (China) | AAA | N/A | September 2025[92] |
| CCXI | International | A-g | N/A (standalone upgraded to A-g) | September 2025[92] |