The International Finance Corp., one of the main World Bank Group members, will be recalled $245 million in the near future. Money will be returned to Russia. According to the decision of the Russian Finance Ministry and Vnesheconombank, funds will be pulled out as imposed sanctions halt investment to the Russian economy. Importantly, representatives of 184 countries are shareholders of the International Finance Corporation (IFC). The main activity of this organization is to render assistance to developing markets. Russia, by participating in this project, attempted to increase investment volume in the banking sector but imposed restrictions do not allow it to carry out joint financial activity. Experts note that it will be the first case of pulling money from international organizations. Russian shareholders have not requested money back prior to that. "On the one hand, this is the first time when Russia wants to get money back from the international fund amid sanctions and crisis. There is nothing surprising. If the fund is not finding areas for investment, the money is usually returned to investors,” a former deputy chairman at Deutsche Bank for Eastern Europe Igor Lojevsky said. This situation once again confirms the limitations of the World Bank and suggests the need to revise the existing cooperation scheme and to implement structural reforms. The Bank is unable to perform its basic function to make investment projects in different countries. In addition, serious competitors appear on the world stage.
