Hungary’s government decided to quit the Russian-controlled International Investment Bank a day after the US sanctioned the lender, the Economic Development Ministry said in a statement.
(Bloomberg) — Hungary’s government decided to quit the Russian-controlled International Investment Bank a day after the US sanctioned the lender, the Economic Development Ministry said in a statement.
The country will join other European Union members, including the Czech Republic, Slovakia, Bulgaria and Romania, that have left or are in the process of withdrawal from the organization since Russia attacked Ukraine a year ago.
The US sanctioned the bank and three of its present or former executives, including a Hungarian national, for coordinating with Russian officials on IIB business since the invasion of Ukraine.
Hungary, which has lobbied against EU sanctions on Russia, initially denounced the punitive measures on IIB.
The bank, which moved its headquarters to Budapest from Moscow in 2018, describes itself as a multilateral lender seeking to boost economic ties between its members, mostly former communist states such as those in eastern Europe.
But critics said the move to Hungary — the EU member with the closest ties to Moscow — posed a threat, with a group of US senators saying it’s “widely seen as an arm of Russia’s secret services.” The bank rejected the allegation.
“Hungary’s government decided that the US sanctions have rendered the International Investment Bank’s operations meaningless; therefore, it recalls state delegates and withdraws from the international financial institution,” the Economic Development Ministry said.
(Corrects the source of the quote in the last paragraph.)
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