Japan Bank for international cooperation (JBIC), fully controlled by the government, imposed restrictions on financing of banks and enterprises in Russia, writes the authoritative Japanese business newspaper Nikkei.
The Bank established criteria for operations with Russian partners, among which is the ban on the allocation of funds for the projects in Russia, of which came from the U.S. and the EU.
“This is done to account for the interests of the United States and EU countries which do not rule out new sanctions against Russia”, – the newspaper writes. The U.S. and EU imposed against Russia more stringent sanctions than Japan, so as suggested in the Bank, if JBIC will Finance the Russian projects, which came from Western companies, this will inevitably cause protests from the Americans and Europeans.
JBIC also intends to ensure that private entities Japan has not funded such projects. In the allocation of funds for programmes in Russia will find the adequate mechanism for the transfer of funding.
Restrictions are also introduced for projects that JBIC could be the only investor.
The newspaper, however, notes that such projects are rather an exception, as the Bank typically invests abroad together with private partners, covering no more than 60% of the funding.
Note, last week, JBIC decided to provide “Sberbank of Russia” loan of 4 billion yen ($38 million). Although the loans in yen not fall under the terms of the sanctions, Japan’s banks nonetheless leery of lending in Russia, writes the Nikkei.
Finance Minister Taro ASO confirmed on 31 October, the existence of such agreements, noting that the country was not private entities, are ready to lend Russia’s largest Bank, the second year under sanctions.