The Czech Republic has called on Bulgaria to leave Soviet-era World Bank
The Czech Republic calls on the Council of the EU, which is a member of the Investment Bank (IIB) and the International Bank for Economic Cooperation (IBEC), to provide Soviet-era institutions in Russia as their largest shareholder.
The Czech Finance Ministry said on Friday that as part of Russia’s targeting of its attack on Ukraine, it would speed up its planned departure from IIB, which moved its headquarters in Budapest from Moscow in 2019, Reuters reported.
The ministry said it was considering sending a notice to the banks, which would lead to leaving in two to three months. “We will call on other countries of the lower union to take the same course of action,” the ministry said.
It says the Czech government sees no economic benefits from staying in the two institutions.
“On the contrary, we are convinced that participation in (the banks) raises issues of security and policy among our Western alliances, which must be compatible in the context of the special Russian invasion of Ukraine.
The Czech Republic has signaled that it may leave IBEC a few years ago, but the process is not over.
The relocation of IIB to Budapest and the granting of diplomatic immunity to Russian personnel there is a matter of concern among US senators.
IIB member states are Bulgaria, Cuba, the Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, according to bank sources. It has assets worth 1.9 billion euros ($ 2.16 billion) as of October 2021.
IBEC lists Bulgaria, the Czech Republic, Mongolia, Poland, Romania, Russia, Slovakia and Vietnam as members and assets of 749m euros as of last September.
According to the website, Bulgaria has financed projects of Huvepharma, Prista Oil, Eurohold, Sparky Eltos and others.