NATIONAL AND MULTILATERAL DFIs IN RUSSIA AND THE IMPACT OF THE BRICS NEW DEVELOPMENT BANK

This research paper analyzes the system of development finance institutions (DFIs) in the Russian Federation, identifying a lack of strategic coordination and an over-reliance on public funding. It explores how the BRICS New Development Bank (NDB) could complement this system by investing in infrastructure, advising on public-private partnerships, and facilitating intra-BRICS investment.

• Russia possesses an extensive system of development institutions targeting priorities such as healthcare, education, housing, and agricultural development, but the system lacks a common long-term strategy or vision. This absence of coordination leads to the duplication of efforts across institutions; for example, Vnesheconombank (VEB) duplicates roles of the Russian Agricultural Bank and Rosagroleasing in agriculture, and competes with Rusnano in advanced technology.
• Russian development institutions are heavily dependent on government resources and struggle to attract private investment. VEB typically finances 50–90% of its own projects and relies on central bank and government deposits, while other institutions depend on subsidies and capital injections, such as the Russian Agricultural Bank which received 18 capital injections from the government as of early 2014 and RUB 76 billion in federal subsidies in 2013.
• Russia is a significant borrower from multilateral development institutions, holding the position of the largest borrower from both the Eurasian Development Bank (EABR) and the European Bank for Reconstruction and Development (EBRD), with loans from the EBRD representing 21.4% of that bank's total credit portfolio.
• The BRICS New Development Bank (NDB) is positioned to integrate into Russia's system without duplicating existing functions because its primary mission is promoting infrastructure projects. Potential areas for NDB involvement include investing in the Power of Siberia gas pipeline, advising on public-private partnership (PPP) legislation, and helping to resolve double taxation issues to boost intra-BRICS direct foreign investment.
• To improve DFI efficiency, the author suggests that the Russian government develop a long-term strategy to eliminate duplication and shift toward attracting private investors. Additionally, the author recommends adopting a development effectiveness framework similar to those used by the World Bank or Asian Development Bank to assess progress based on project-level data rather than traditional financial profit indicators.

APA

Morozkina, A. (2015). NATIONAL AND MULTILATERAL DFIs IN RUSSIA AND THE IMPACT OF THE BRICS NEW DEVELOPMENT BANK. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-4.pdf

Chicago

Morozkina, Alexandra. NATIONAL AND MULTILATERAL DFIs IN RUSSIA AND THE IMPACT OF THE BRICS NEW DEVELOPMENT BANK. South African Institute of International Affairs, 2015. https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-4.pdf.

Wikipedia

{{cite report |last1=Morozkina |first1=Alexandra |title=NATIONAL AND MULTILATERAL DFIs IN RUSSIA AND THE IMPACT OF THE BRICS NEW DEVELOPMENT BANK |publisher=South African Institute of International Affairs |date=2015 |url=https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-4.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{morozkina2015national, author = {Morozkina, Alexandra}, title = {{NATIONAL AND MULTILATERAL DFIs IN RUSSIA AND THE IMPACT OF THE BRICS NEW DEVELOPMENT BANK}}, institution = {South African Institute of International Affairs}, year = {2015}, url = {https://saiia.org.za/wp-content/uploads/2015/04/BRICS-Insights-4.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }