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The European Bank of Reconstruction and Development’s board on October 18 approved $500 million in funding for the Azerbaijan-led TANAP pipeline, which will facilitate the delivery of Caspian Basin natural gas to Western Europe, Eurasianet.org reported, adding the decision prompted swift criticism from watchdog groups, which accused the bank of disrespecting the “fundamental principles of multiparty democracy [and] the rule of law.”

The source cites the bank press statement that the allocation of $500 million would be made from its own funds, but made no mention of a syndicated loan of up to $1 billion that the bank had been expected to arrange.

According to the report, the decision comes despite concerns over Azerbaijan’s suitability for support following the country’s decision early this year to drop out of an international oil-and-gas monitoring agreement, as well as new allegations of high-level corruption.

Representatives of watchdog groups asserted that the bank was sending the wrong signal by proceeding with the disbursement. “We regret to see the extraction and import of additional fossil fuels into Europe, benefiting only a handful of corporations and oppressive governments, is valued more than sustainable development and freedom of ordinary people,” the source quotesc Anna Roggenbuck, a policy officer at CEE Bankwatch Network. “We regret to see the extraction and import of additional fossil fuels into Europe, benefiting only a handful of corporations and oppressive governments, is valued more than sustainable development and freedom of ordinary people.”

Eurasiant next reminds about the “Azerbaijan Laundromat” investigation that revealed that one of the EBRD’s board members, Kalin Mitrev, received at least €425,000 in fees from an Azeri company, alleged to be fronting for Baku.

Mitrev has denied any wrongdoing and has asserted that the payments were legitimate fees for consultancy work. However, Mitrev’s links to the Azerbaijan government are not limited to consultancy. It is noted that his wife, Bulgarian politician Irina Bokova, is the director general of UNESCO, which somewhat controversially awarded the organization’s highest award to Mehriban Aliyeva, the wife of Azeri president Ilham Aliyev.