BRICS Development Bank might launch by late 2015

On 25 February, the Council of the Federation of the Federal Assembly of the Russian Federation ratified the Agreement on the BRICS New Development Bank.

According to earlier reports, the bank was initially established to provide funding for infrastructure projects in the BRICS and other emerging countries, and is expected to become one of the largest multilateral development institutions in the world with a capital of $100 billion.

The New Development Bank's Board of Directors will hold its first meeting in summer 2015 in Ufa (Republic of Bashkortostan) to nominate and approve candidates to serve as the board's chairperson and vice chairperson.

Earlier, Russia's Finance Minister Anton Siluanov said that the BRICS Deputy Finance Ministers Meeting in Istanbul, Turkey, featured discussions on such technical documents as the rules of procedure for the bank's Board of Governors, as well as consultations regarding the candidates for key management positions in the new institution. The Ministry of Finance expects the New Development Bank to launch by late 2015 and to become fully operational within 4-5 years.

It should be noted that the relevant allocations have been adequately factored into Russia's federal budget law for 2015, with Russia expected to contribute $2 billion over seven years.