Russia to create bank for defence industry
Russia will create a state-owned bank to finance its defence industry which has encountered difficulties in obtaining financing due to US sanctions, the Russian Ministry of Finance (MoF) announced on 18 January.
The MoF said the bank would specialise in conducting operations related to state defence orders and large state contracts.
Russian media have presented the opening of such a bank as a means to protect the country’s other lenders from Western sanctions on Russia’s military-industrial complex over the conflict in eastern Ukraine, including recently tightened US measures.
At the end of December 2017, Russian private bank Alfa said it would stop working with firms in the defence sector because of the US sanctions.
Russian media have said the bank could be created on the base of an existing medium-sized bank.
The MoF said the bank would soon become the property of the state.
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