LONDON: The Euro­pean Bank for Recon­struction and Develo­pment (EBRD) said on Wednesday that its board had given “clear guidance” it would not approve new investments in Russia, traditionally its biggest recipient.

The EBRD said last week that it would consult all of its shareholders on the implications of the European Union’s call for it and the European Investment Bank (EIB) to suspend new lending in Russia, a response to Moscow’s support for separatist rebels in eastern Ukraine.

“A majority of the Board of Directors of the EBRD, including all EU member states and several non-EU shareholders, have given clear guidance to the EBRD management that they will be unable to approve new investment projects in the Russian Federation,” the bank said in a statement.

The move is likely to have a considerable impact in Russia.

Last year the London-based EBRD lent Moscow 1.8 billion euros ($2.5bn) while the EIB pledged more than 1bn euros.—Reuters

Published in Dawn, July 24th, 2014