Pursuant to Sanctions Board Decision No. 53, the Sanctions Board imposes a sanction of conditional non-debarment on the Respondent for fraudulent practices. By this decision, the Respondent is required to (i) make restitution to the borrowing country (in this case, the Russian Federation) of the full amount of funds obtained as a result of the fraudulent practices at issue and (ii) adopt and implement an effective integrity compliance program in a manner satisfactory to the World Bank. If Respondent fails to show within one year that it has satisfied both conditions, it will be debarred for a period of one year.
This is the first time the Sanctions Board imposes a sanction of conditional non-debarment or requires restitution. Other possible sanctions include the issuance of a letter of reprimand, debarment, and debarment with conditional release.
Update (September 4, 2013): Pursuant to a determination of non-compliance with conditions for non-debarment, issued by the World Bank Group's Integrity Compliance Officer under Section 9.03(d) of the World Bank Sanctions Procedures (as adopted January 1, 2011, and amended July 8, 2011), the Respondent was debarred effective as of September 4, 2013.?