Finance Minister Nirmala Sitharaman and Russian Counterpart Discuss SCO Development Bank and Bilateral Ties

Union Finance Minister Nirmala Sitharaman met her Russian counterpart, Anton Siluanov, to discuss strengthening bilateral cooperation and the potential establishment of the Shanghai Cooperation Organisation (SCO) Development Bank.

The bilateral meeting took place on the sidelines of the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting in Asheville on Monday.

According to a statement issued by the Finance Ministry on Tuesday, the two ministers exchanged views on regional and global economic developments, strengthening bilateral cooperation, and addressing shared interests within multilateral spheres.

During the meeting, Sitharaman and Siluanov also discussed cooperation in the New Development Bank and the Asian Infrastructure Investment Bank. Both sides explored areas of mutual interest aimed at reinforcing these institutions to function effectively as multilateral development banks.

"They also discussed the establishment of the Shanghai Cooperation Organisation Development Bank," the Finance Ministry's statement noted.

The meeting marked a notable diplomatic moment as Siluanov's presence at the G20 represented the first in-person participation of a Russian leader at a multilateral forum meeting in the United States since earlier tensions. Previously, Siluanov had participated in a G20 meeting via video link in April 2022, an event that led several Western finance ministers to walk out in protest.

While Russia was expelled from the Group of Eight (G8) most industrialised nations following its annexation of Ukraine's Crimean Peninsula in 2014, it continues to maintain its membership in the broader G20 forum.

Addressing reporters at the Oval Office regarding the invitation extended to Siluanov, President Donald Trump stated on Monday, “Well, we are going to see what happens, but we like getting along with everybody. One of the reasons that I’m so successful, I get along with everybody.”

In addition to his talks with the Indian Finance Minister, Siluanov held a bilateral meeting with U.S. Treasury Secretary Scott Bessent. The discussion between Siluanov and Bessent focused on the Russian-American financial relationship alongside cooperation issues within the G20 framework.

"The discussions between India and Russia on multilateral institutions like the New Development Bank, the Asian Infrastructure Investment Bank, and the proposed SCO Development Bank highlight ongoing efforts to shape regional financial architecture. For businesses and policymakers, keeping an eye on these multilateral financial developments is critical, as shifts in international banking frameworks and bilateral economic cooperation directly influence cross-border investments, trade policies, and macroeconomic stability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes