'BRICS New Development Bank may play more important role than World Bank' - VTB CEO

The New Development Bank (NDB) is the first institution created by BRICS countries, and is a permanent instrument that will work every day and serve as the heart of BRICS cooperation, VTB CEO Andrey Kostin told RT.

RT:Do you think that this time it will boost Russia-China cooperation and if yes in what ways?

Andrei Kostin: Definitely, yes. The creation of new institutions is quite important to develop a relationship between country members of BRICS, and of course China is a leading nation with the largest economy among the BRICS. So I’m quite sure that this project, together with others like Silk Way, will definitely increase the scope of cooperation between Russia and China in the economic area.

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RT:Everyone keeps speaking about this new BRICS bank. What do you think, why is it so important now?

AK: First of all, it’s important because it’s a first institution created by the BRICS countries. Actually we are talking about the institutionalization of the BRICS process, and that’s quite important I think. It’s a permanent working instrument which will be working every day and which will be in the heart of BRICS cooperation. Secondly, the bank - with quite a large capital - will be in the position to provide finance for important projects in Russia and other countries, and I think it will be a substantial player and might be playing an even more important role - for Russia definitely, for example - than the World Bank because the World Bank is not lending money to Russia and Russia isn’t borrowing from it. But I think Russia will be ready to borrow from the New Development Bank.

RT:Do you expect in the near future that the local currencies can be used within BRICS?

AK: Definitely, yes. I think we definitely see the growing interest on all countries to make settlement in local currency. Chinese currency, yuan, is a leading one, but the ruble as well can be used. I think on the part of my colleagues, of Russian leading exporters, I’m quite sure we will see this process quite soon.

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