At its regular meeting, Vnesheconombank’s Expert Council discussed global economic trends and the outlook for VEB Group foreign economic operations. The meeting was attended by representatives from the VEB Group, academia and NGOs.
Focusing on major and unique projects, guarantee support and trade finance transactions, Vnesheconombank has an important role to play in the government system of export promotion. As of 1 December 2016, the Bank for Development’s portfolio of export credits and guarantees (excluding the portfolio of the Russian Export Center) exceeded RUB 456bn with more than RUB 270bn accounting for the new transactions effected over the year.
Among the speakers at the meeting were Member of the Russian Academy of Sciences Andrey Kokoshin, Director of the Institute of World Economy and International Relations of the Russian Academy of Sciences and Member of the Russian Academy of Sciences Alexander Dynkin, Associate Member of the Russian Academy of Sciences Andrey Spartak, Director General of the Russian Export Center Petr Fradkov, and Vnesheconombank’s Senior Vice President for Exports and Trade Finance Daniil Algulyan.
According to Andrey Spartak, ‘for Russia, the broader diversification of exports drawing on our natural competitive advantages is of paramount importance, as well as a flexible focus on the actual external demand’.
Petr Fradkov stressed the significance of the marketing support for Russian brands and the fostering an export culture: “The national export promotion system must primarily aim to increase the number of the Russian companies engaged in export business”.
Vnesheconombank views export promotion as one of its business priorities. In the near future, the Bank is gearing up to act as an anchor in transactions thus enabling commercial banks, in particular foreign ones, to enter the export finance market.
In his report, Daniil Algulyan revealed VEB’s insights as to the financing of high-technology product exports, in particular with the help of various government support instruments (interest rate subsidies), and new financial products. Furthermore, Mr Algulyan outlined the prospects for financing the export of new technology and IT solution-based services: “Lacking in flexibility and agility, the classical model of export finance is losing its efficiency. It won’t be long now that the leading role will be played by the business platforms to serve as the basis for active interaction between investors and customers (exporters and importers) and the use of government support instruments”.