State-controlled Japan Bank for international cooperation (Japan Bank for International Cooperation, JBIC) has restricted financing for Russian companies and financial institutions of Russia, to avoid conflicts with the regime of sanctions imposed by the US authorities and the EU, reports the Nikkei newspaper.
According to the newspaper, the leadership of JBIC established four criteria with which compliance is mandatory under the sole allocation of JBIC loans. However, there are Nikkei emphasized that this rarely happens and usually the Bank is not involved in financing any projects without the involvement of private co-investors so that the share of Bank does not exceed 60%.
In the framework of the newly introduced restrictions JBIC intends to continue to consider funding projects, of which after the administration imposed sanctions on Russia out of European or American company. In addition, JBIC intends to monitor participation in the financing of such projects to private Japanese investors and adequate mechanism for the transfer of funds to the final recipients of funding.
In the case of non-compliance with criteria on issued JBIC loans, the state Bank plans to sell the rights of the creditor on such loans to private investors.
In October 2016, JBIC and Sberbank have agreed to allocate to a Russian Bank loan 4 billion yen (approximately us $38.5 million), which was planned to send to the company-operator of the port of Vostochny on the purchase of necessary equipment fuel.