Hungary will leave the Russian International Investment Bank after US sanctions – media
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After the introduction of US sanctions against the Russian International Investment Bank, the government of Viktor Orbán decided that Hungary would withdraw from the financial institution.
This was reported by Világgazdaság with reference to its own sources, “European Pravda” writes.
After Washington announced the sanctions on Wednesday, the government reviewed the situation with the International Investment Bank and concluded that participation in it had lost its meaning. So Budapest decided to withdraw its government delegates from the bank, sources told the paper.
Thus, Hungary will be the last EU country to leave the bank, which is controlled by Russia and has its headquarters in Budapest.
The International Investment Bank is a multilateral development institution headquartered in Budapest. It was created by the countries of the former Eastern bloc in 1970. The purpose of the bank is to promote the economic development of member states, primarily through the provision of preferential loans to well-known companies or projects.
The bank has almost 50% Russian ownership and is not supervised by the Hungarian authorities. US Treasury Department on Wednesday announced sanctions against the bank.
United States authorities say that the International Investment Bank’s presence in Budapest allows Russia to strengthen its intelligence presence in Europe, as well as facilitate malicious activities in Central Europe and the Western Balkans and corruption and sanctions evasion.
The subsidiary of MIB – “MIB Capital”, registered in Moscow, the current head of the bank Nikolay Kosov and two former – Russian Georgy Potapov and Hungarian Imre Laslochki – also fell under American sanctions.
On Wednesday afternoon, the American ambassador in Budapest, David Pressman, explained that the US sanctions are aimed at reducing Russia’s access to international financial systems.
According to him, the US does not agree with Hungary hosting a financial institution whose senior officials have diplomatic privileges.
He also stated that Washington considers Hungary an important ally and concerned about Budapest’s aspiration to closer relations with Russia.
In February this year Bulgaria said it would work from the shareholders of the International Investment Bank.
Slovakia, the Czech Republic and Romania also left the bank’s shareholders last year.
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