Canada Markets open in 1 hr 25 mins

Exclusive-Inter-American Development Bank will divest Russian assets, source says

A general view shows residential buildings in front of the Moscow International Business Center, also known as "Moskva-City", in Moscow

WASHINGTON (Reuters) - The Inter-American Development Bank plans to divest Russian holdings in its pension plans and remove Russia's ability to observe the bank’s annual meetings, a source familiar the matter said.

The Latin America and Caribbean development bank's board is expected to approve the plans at a meeting on Monday as the war in Ukraine intensifies and international financial institutions increasingly distance themselves from Russia.

The IDB has no Russia assets on its balance sheets, but its pension plans hold $9 million in Russian assets, the source said. "The IDB plans to divest from those as soon as possible."

Russia is not a member of the IDB, but it had been granted permission to take part as an observer in the bank's annual meetings of 48 members.

The World Bank last week halted all programs in Russia, and the European Bank for Reconstruction and Development (EBRD) said it would suspend Russia and Belarus indefinitely from access to its financing.

Ukraine on Sunday made a formal request to the United States and other foreign governments to terminate the memberships of Russia and Belarus in the International Monetary Fund and World Bank.

(Reporting by Andrea Shalal; Editing by Heather Timmons and Cynthia Osterman)