The Beijing based multilateral agency Asian Infrastructure Investment Bank has suspended all activities relating to Russia and Belarus as Moscow’s attack on Ukraine intensified. The US and European Union have already announced stringent sanctions against Russia in a bid to isolate the country.

“We the Management will do our utmost to safeguard the financial integrity of AIIB, against the backdrop of the evolving economic and financial situation. Under these circumstances, and in the best interests of the Bank, Management has decided that all activities relating to Russia and Belarus are on hold and under review,” the multilateral agency said in a statement.

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This is seen as a major step taken by China, which is Russia’s close ally and has until now refrained from criticizing Moscow for its attack on Ukraine. 

The AIIB also said that it is ready to extend financial assistance to its members who have been adversely impacted by the war, directly or indirectly. It added that economic spillover from commodity price shocks, financial market volatility and other factors may adversely impact our members’ economic situation. “We will work closely with our partner multilateral organizations to provide any needed support expeditiously,” it said.

While China has more than 26 per cent voting share in AIIB, India has about 7.6 per cent.