AIIB with 30% Chinese Stake Pauses Activities in Russia: "Saddened by War Damage"

▲ Jin Liqun, President of AIIB (Photo by AP Yonhap News)

[Asia Economy Reporter Kim Hyunjung] The Asian Infrastructure Investment Bank (AIIB), headquartered in Beijing, China, announced on the 3rd that it is suspending and reviewing activities related to Russia, according to a report by the Hong Kong South China Morning Post (SCMP).

SCMP reported that AIIB stated in a press release, "Activities related to Russia and Belarus have been suspended and are under review due to the Russia-Ukraine war," adding, "AIIB expresses its condolences to all those affected." Belarus is considered a close ally of Russia.

AIIB was established in 2016 under China's leadership as a counter to Western-led institutions such as the World Bank (WB) and the International Monetary Fund (IMF). China is the largest shareholder with a 30% stake. Russia is also a founding member with a 6.7% share. Ukraine and Belarus are not members of AIIB.

The statement drew attention for referring to Russia's invasion of Ukraine as the "Ukraine war." This is a more neutral term compared to the "military operation" phrasing used recently by China and other pro-Russian countries.

AIIB also mentioned, "AIIB is prepared to mobilize funds flexibly and swiftly and is ready to support members directly or indirectly affected by the war," adding, "Economic repercussions from commodity price shocks, financial market volatility, and other factors may adversely affect the economic conditions of member countries."

Although no specific date has been set, AIIB's annual meeting was originally scheduled to be held in Russia this year. Last year's annual meeting took place in Dubai in October.

This content was produced with the assistance of AI translation services.