VEB 2.0: BUILDING A BANK OF THE FUTURE
In December 2016, the Supervisory Board approved VEB Strategy 2021. The Strategy brings into sharper focus the segments which are most critical for the transformation of the Russian economy and in which the Bank can play the key role, in particular:
- production sector,
- defense industry conversion to civilian products,
- high-technology sphere,
The implementation of the Strategy will have a considerable positive effect on the Russian economy. The growth of VEB investments by 500 billion rubles by 2021 (including co-investments), as provided in the Strategy, will ensure a GDP contribution of 0.4-0.7% in 2021.
Our activity will contribute to the improvement of the investment climate in the Russian Federation. Acting as an anchor investor, VEB will seek to raise the funds of both Russian business and foreign partners for the financing of its long-term investment projects. Project support on the basis of advanced IT solutions and use of public-private partnership mechanisms will generate added value for VEB’s clients and mitigate their risks.
We are building a development bank that will take account of the best global practices, and in some areas will offer cutting-edge services to its clients.
Our new competencies will be built around the client’s needs. We shall support our client throughout the entire life cycle of projects.
We will develop our customer relations, sectoral analysis, transaction structuring, project support and asset management competencies.
Transition to the New Model
In the realization of the new strategy we see several stages:
Stage one (crisis management)
- Stabilization of subsidiaries;
- Withdrawal from non-core assets;
- Search for resources for servicing VEB’s obligations;
- Development of a new special project mechanism;
- Optimization of expenses.
Stage two (transformation) focuses on providing support for the Russian economy by increasing the economy crediting to 120 billion rubles per annum (in the baseline scenario) and includes:
- Further work on the withdrawal from non-core assets;
- New investment process and VEB’s new organizational structure;
- Beginning of investments by target strategic areas;
- Launch of the new investment project support process;
- Introduction of new IT-solutions.
Stage three (roll-out) provides for a substantial growth of annual disbursements to 200 billion rubles per annum (in the baseline scenario).
As a result, the main changes in the organization and processes will take place as early as 2016-2017, and before the end of 2018 the Bank plans to withdraw from the greater part of non-core assets. By 2021, VEB will achieve the target financing levels.