BRICS development bank launched before summit in Russia

July 08, 2015 08:20
The five BRICS countries are holding their annual summit Wednesday in Ufa, Russia. Photo: AFP

The five major emerging economies known as BRICS launched a development bank Tuesday before a summit in the Russian industrial city of Ufa, The Wall Street Journal reported.

The long-planned development bank, aimed at financing projects mainly in member countries Brazil, Russia, India, China and South Africa, will select its first projects to finance by the end of the year, Russian Finance Minister Anton Siluanov said.

The national banks of the five countries also signed a deal Tuesday to create a US$100 billion reserve fund by the end of this month that can be drawn upon in financial emergencies.

Russian President Vladimir Putin is due to meet the other countries’ leaders Wednesday in Ufa.

Russia, which holds the rotating presidency of the BRICS grouping this year, has emphasized its growing links with emerging economies, particularly China, as ties with the West have chilled after Russia's annexation of Crimea and support for separatists in eastern Ukraine.

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