The Asian Infrastructure Investment Bank (AIIB) has made its first investment in Russian by backing the government’s road transport project with a $500m (€450m) loan.

AIIB said the loan, which will be administered by the Ministry of Transport and Rosavtodor, the Federal Road Transport Agency, will be used to “upgrade existing infrastructure and support road rehabilitation in several subprojects that align with national transport priorities”.

DJ Pandian, AIIB vice president and CIO, said: “Our investment in the Russian Federation is a welcome addition to AIIB’s growing portfolio in the transport sector across and beyond Asia.

“As it is the bank’s first financing in Russia, it also offers us a valuable opportunity to gain experience in the country for future collaboration on a number of potential infrastructure projects.”

China-backed AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia.