Igor Finogenov, an assistant to Finance Minister Alexei Kudrin, told an investment forum in New York that the Eurasian Development Bank was the largest integration project in the financial sector since the collapse of the Soviet Union.
Russia and Kazakhstan signed an agreement to create the bank January 12 in the Kazakh capital, Astana. Under the agreement, the bank will have authorized capital of $1.5 billion, 33% of which will belong to Kazakhstan and the remainder to Russia.
Finogenov, expected to be nominated by Russia as board chairman, said the bank would likely take in new members from the Eurasian Economic Community (Eurasec), a regional body seeking to establish a single economic zone comprising Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Belarus, and would look to increase its assets.
"[The bank's] authorized capital could be increased by the board," he said. "We assume that other countries, most likely members of Eurasec, will join the bank soon. The objective is to increase bank's assets to $10 billion in the next 3-4 years."
The bank will be based in former Kazakh capital Almaty - still the country's business center - and have a branch in St. Petersburg, Russia's second city, and offices in the two countries' capitals, Moscow and Astana.
Kazakhstan's parliament has already ratified the agreement, which has yet to be approved by the Russian parliament. Finogenov said ratification would likely happen this spring.
The bank's charter gives it immunity from prosecution, except in actions unrelated to its operations. It will also be exempt from any taxes, dues, duties and other charges, except payments for specific services.
