KAZAN (Russia), May 21: The European Bank for Reconstruction and Development (EBRD) laid out ambitions here Monday to boost activity in the Balkans and the Russian-led Commonwealth of Independent States, while also denying any squabbling over what to do with record profits.

The London-based EBRD, founded in 1991 to assist former communist nations' transitions to market economies, plans to transfer efforts from relatively developed central Europe and the Baltic republics to poorer southern countries and the ex-Soviet republics further east.This won firm support from the bank shareholders -- 61 countries and two international institutions -- said chairman Jean Lemierre in Kazan, capital of Russia's historic Tatarstan region.

There was also strong support for increasing the EBRD's activity in Russia.

Lemierre renewed his backing for Russia's entry into the World Trade Organisation, saying, “the trend of their progress is to be part of the global economy.” “I hope it will be done soon,” he added.

Support from the international lender, which specialises in loans in the higher risk areas of eastern Europe, is especially welcomed in Moscow, which is embroiled in diplomatic and trade rows with the United States and the European Union.

Lemierre said Russia needed especially to complete long-running negotiations for entry to the WTO and also to the Organisation for Economic Cooperation and Development (OECD).

Earlier, at the two-day meeting Lemierre said he shared a “great vision with the policymakers of Russia.” Economic Development Minister German Gref said he had agreed with OECD Secretary General Angel Gurria in Kazan that negotiations on OECD membership would start before Russia completes WTO talks.

The holding of the annual meeting in Russia underlined how the country is the bank's main client, while the choice of the Tatarstan region symbolises the bank's desire to branch out from major urban centres.

Oil-rich Tatarstan has a booming economy and a mostly Muslim population, making the region a showcase for Russia, which last year took EBRD loans of 1.9 billion euros ($2.5 billion) -- 38 per cent of the bank's total investments.

Among those helped were the MTS mobile phone operator and pipeline manufacturer CHTPZ.

However, the Kazan meeting was also the site of debate over what the EBRD should do with record profits of 2.4 billion euros ($3.2 billion) last year.

Three solutions are being mulled: strengthening reserves; redistributing the surplus to shareholders; or creating a special fund for renewable energy projects or nuclear security, Lemierre said.—AFP