How escalation of situation in region affected BSTDB's work?

"As we all know, relaxed monetary policies and expansionary fiscal policies have resulted in ample global liquidity, which benefits both developed and developing countries. As a development bank, we try to support real economic activities both in Ukraine and other countries. Naturally, other players are also keen to use this opportunity to make investments."

Report informs, President of the Black Sea Trade and Development Bank (BSTDB) Dmitry Pankin said in an interview with Interfax Ukraine.

"However, issues with political stability can inhibit or at best, postpone those investments. To fully take advantage of this ample liquidity Ukraine and all other countries need stability, the working rule of law, good governance, and other related factors in place.

That is particularly relevant for infrastructure investments. It should be remembered that once existing capacity is utilized, further growth requires new investments. Inadequate infrastructure can create real bottlenecks for growth. As such, we maintain our strategic priority to infrastructure financing, including municipal infrastructure, in our member countries in the medium-term perspective," Pankin noted.

Answering the question about the impact of the recent escalation in the region (Armenia-Azerbaijan, Turkey-Greece) and the ongoing tensions between Ukraine and Russia on the bank's activities, the BSTDB President noted:

"In its long history, the Black Sea region has faced many challenges, controversies, and tensions. Despite that, our countries and peoples have always managed to sort them out and continue cooperation.

A core corporate value of BSTDB is to focus on our regional development mandate and keep political disputes and considerations away from our Board room. We evaluate all projects without any political prejudice but according to their development and financial merits.

BSTDB has contributed to the Shah-Deniz II gas exploration project, which supplies gas for the South Caucasus Pipeline from Azerbaijan through Georgia to Turkey.

Of course, political stability is a prerequisite for implementing cross-border projects, especially as it comes to long-term investments in infrastructure. Under the current circumstances, such projects ideas as the Black Sea Ring Highway have little chance to be realized. Nevertheless, smaller size bilateral projects can be agreed upon and implemented. "