Russian President Vladimir Putin has endorsed a law ratifying the deal on establishing the BRICS New Development Bank (NDB). Last month, the draft agreement was ratified by Russia’s State Duma. The idea of the bank was first proposed by the BRICS leaders in the early 2014. The key principles were settled and the agreement to found the joint development bank was signed at the BRICS summit in Fortaleza, Brazil, in June 2014. The NDB is expected to become one of the world's major institutions with a startup capital of $100 billion. NDB's key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies. Besides, the money will be allocated for innovative projects in other emerging markets. The New Development Bank is slated to start operating fully by the end of the year with the headquarters based in Shanghai. The chairmanship for a five-year term will rotate among the BRICS members. An Indian top official will be appointed the first NDB President and the first Chairman of the Board of Directors is expected to be from Russia. Interestingly, the bank is based on the principle that other countries of the United Nations Organization can apply for the NDB membership. Besides, any emerging or advanced economy can join the would-be global lending institution.
