V.V Putin’s Opening Address:
Good evening esteemed colleagues,
Today, we have a wide agenda. We are to approve Vnesheconombank’s annual report for the year 2010 and consider a number of large-scale projects in the financing of which Vnesheconombank participates.
I would like to say that Vnesheconombank’s activity priorities changed last year. The general economic stabilization and the start of the post-crisis period allowed the Bank to switch from taking emergency measures for providing support for various economic sectors and individual enterprises to accomplishing long-term objectives. Here I mean above all programs aimed at modernizing enterprises, quality infrastructure upgrading and of course supporting small and medium-sized enterprises.
Last year, the entire amount of resources allocated by Vnesheconombank for technological, infrastructure and development projects increased by a fourth to 350 billion rubles. The Bank extended funds to finance the construction of the Boguchan hydroelectric power station, the Urengoy power station, a new passenger terminal in the Vladivostok international airport, the construction of such ice-class tankers as Kirill Lavrov and Mikhail Uljanov and many other projects.
The Bank’s portfolio of loans aimed at supporting the export of Russian high-technology products increased almost to 60 billion rubles. VEB earmarked up to 250 billion rubles for developing mortgage lending including refinancing of housing credits. VEB’s participation in these programs ought to secure a trend towards reducing rates on mortgage credits and expanding mortgage lending in our country as a whole.
As of January 1, 2011, the amount of VEB’s funds allocated through its subsidiary banks to implement programs of supporting small and medium-sized enterprises that I have already mentioned was about 50 billion rubles. I would like you to go ahead with giving high priority to these issues. I’d like to remind you that we are seeking to increase Vnesheconombank’s financial support for small and medium-sized enterprises to 250 billion rubles by the year 2015.
In general, I would like to thank VEB’s entire team for their active efforts last year. In my opinion, the Bank achieved positive results, enhanced its standing as a key development institution in Russia. And its net profit amounted to 28 billion rubles in 2010.
And now I’d like to say a few words about our immediate tasks.
Vnesheconombank has already gained good experience in the regions and we should step up our efforts at the regional level. In order to fund projects in the Northern Caucasus, VEB founded the Northern Caucasus Development Corporation in November of 2010. The Corporation is already selecting potential facilities and programs for financing.
Today, we are to approve a decision to open a credit line to finance the construction of the Arkhyz alpine resort in Karachaevo-Cherkessia. The project provides for the construction of a world-class tourist cluster with modern infrastructure that can host up to 25,000 guests at any one time. We plan to set up a total of six tourist recreational zones in the Northern Caucasus and in the South of Russia. Almost 60 billion rubles are to be allocated from the federal budget to set them up. These facilities are located in Karachaevo-Cherkessia, the Krasnodar Territory and the Republic of Adygea, North Ossetia and Dagestan. I’d like to note that despite considerable funds that we allocate to finance the projects related to the 2014 Sochi Olympics we should not neglect other federal constituent entities as well as for example alpine tourist clusters on the South of our country. Considerable sums of money are allocated for these projects and I believe that it would invigorate the situation in the region, create new jobs and help to boost regional budgetary self-sufficiency.
Undoubtedly, these are complicated, multipurpose projects. We’ll have to address a lot of problems while implementing them. But we are sure that these initiatives would bring tangible results, create new jobs and improve the socio-economic situation in the region as a whole. By the way, our foreign partners are showing more interest in such projects. Have you heard that a joint Russian-French joint venture is being set up to develop the Northern Cau- casian tourist cluster?
Today, we are also to make a decision on establishing the Far Eastern and Baikal Regions Development Fund. As was agreed before, this Fund is going to be Vnesheconombank’s subsidiary company with its headquarters in Khabarovsk I’d like to stress that the Fund is designed not only to implement investment projects but also provide information and image support for the Far Eastern territories to position them as attractive markets for both Russian and foreign investments. This means that the Fund is supposed to be the region’s full-fledged development institution.
I expect that VEB’s prestige will make it possible to engage large Russian and foreign banks and investment companies. Until 2015, at least 70 billion rubles will be allocated to implement the Fund’s projects and the first 5 billion might be allocated as early as this year.
And finally, strenuous efforts are being made now to establish a Strategic Initiatives Agency. The projects submitted to the Bank are currently being discussed by its experts. Final results of the competition to fill the vacancies of the Agency’s Director General and directors responsible for three lines of activity will be soon announced as we agreed before. I think that Vnesheconombank should take an active part in the Agency’s activity and provide it with full support including financial assistance with regard, of course, to those projects that are of interest to the Bank. VEB has already made a decision to grant 100 million rubles to the Agency for it to make necessary arrangements to start its activity. Let’s consider other mechanisms for promoting projects being offered that will be selected and win tenders.
Origin: Internet Portal of the Russian Government
On the Decisions Made By Vnesheconombank’s Supervisory Board
VEB’s Supervisory Board Gives its Approval for Financing the Construction of the Arkhyz Alpine Resort in Karachaevo-Cherkessia
Moscow. July 14. INTERFAX-AFI – Vnesheconombank’s Supervisory Board gave its approval for providing 5 billion rubles for the construction of the first stage of the Arkhyz alpine resort in Karachaevo-Cherkessia, Vnesheconombank Chairman Vladimir Dmitriev told journalists after the Supervisory Board meeting.
“We have discussed the project today and made a positive decision”, he said speaking about funding this project.
V.Dmitriev noted that despite considerable funds are allocated to finance the Olympic facilities other projects should not be ignored.
On Wednesday, VEB’s Supervisory Board also approved a list of Olympic facilities that are funded in line with the decisions taken by VEB’s Supervisory Board in 2009.
V.Dmitriev reminded that at that time a decision was made to fund projects in the ratio of 70% to 30%, that is, Vnesheconombank was responsible for allocating a greater part of funds.
V.Dmitriev added that as to projects that carry increased risk and heavy burdens on investors the said ratio is 90% to 10%, that is, Vnesheconombank is responsible for providing a substantially greater part of funds. Vnesheconombank’s Chairman reminded that the interest rate on credits for these projects is equal to refinancing rate plus 0.4-1.4 of percentage point.
According to V.Dmitriev, the total amount of financing 17 Olympic facilities is 150 billion rubles.
Moreover, on Wednesday VEB’s Supervisory Board considered an issue of VEB’s participation in the financial rehabilitation of Amurmetall and Tractornye Zavody Concern. VEB’s Supervisory Board approved further steps to improve these companies’ activities.
VEB’s Supervisory Board also approved a concept to develop VEB’s Ukrainian subsidiary bank – Prominvestbank.
VEB to Provide 500 Million Rubles to Set Up the Far Eastern and Baikal Regions Development Fund
MOSCOW, July 14. /PRIME/. Vnesheconombank is to provide 500 million rubles to set up the Far Eastern and Baikal Regions Development Fund. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it the day before.
According to him, on Wednesday, VEB’s Supervisory Board made a decision to set up the Fund. It will be VEB’s subsidiary company headquartered in Khabarovsk.
V.Dmitriev said that the Fund would be responsible for working out projects from a concept stage to a stage transparent to investors. And Vnesheconombank is ready to participate in funding projects in the amount of no more than 20 percent of their value. The remaining funds are to be made available by a project’s initiator in the form of its own and borrowed funds, with its own fund being no less than 20 percent of a total investment amount.
“We expect that in 2011 – 2015 VEB’s participation share in financing project might reach up to 70 billion rubles”, said V.Dmitriev.
Vnesheconombank’s Chairman also said that VEB’s Supervisory Board approved the procedure for considering and financing a pre – investment stage of the Skolkovo Fund residents’ investment projects.
V.Dmitriev also said that VEB’s Supervisory Board had given its approval to provide the Strategic Initiatives Agency with a grant worth 100 million rubles for it to be able to start its activity. He also said that a special subdivision was to be set up within Vnesheconombank to coordinate efforts with the Agency to select and fund projects.
Moreover, the Bank’s Supervisory Board approved a concept of developing VEB’s Ukrainian subsidiary bank – Prominvestbank. According to V.Dmitriev, the subsidiary bank would focus on working with companies that form an integral part of cooperation ties between Russia and Ukraine. He explained that he meant companies operating in the power and transport and nuclear power engineering industries as well as in the aircraft and engine construction sectors
Vnesheconombank Participates in the Seliger -2011 All-Russian Youth Education Forum
As part of the theme session “Innovations and Technical Creativity” at the Seliger-2011 All-Russian Youth Education Forum (the Tver region), Vnesheconombank’s consulting center worked on July 6 and 7, 2011.
During the period, the session’s participants discussed their innovation projects with specialists from Vnesheconombank’s and MSP Bank’s (the Russian Development Bank till May of 2011) investment subdivisions and they were also consulted on the issues of working out business plans and financial models of investment project, supporting small and medium-sized enterprises and public private partnership. Vnesheconombank’s consulting center provided required information to more than 200 Forum’s participants.
Vnesheconombank invited Forum’s participants to a competition for the best innovation project. The competition is to be held from July 6 to 30 2011. As a result of the competetion three winners are to be chosen. They will be able to undertake paid on the job training at Vnesheconombank during 2011/2012 academic year.
Vnesheconombank’s consulting center operated under the educational project “Training of Specialists – Participants in Investment Projects Implemented with the Assistance of Development Institutions and was aimed at enhancing expertise of Russia’s would-be research and technical personnel.
Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
On the Results of Investing Funds of the Reserve Fund and the National Wealth Fund
Russia’s Finance Ministry hereby informs about the results of investing funds of the Reserve Fund and the National Wealth Fund as of July 1, 2011
The Reserve Fund
The aggregate amount of the Reserve Fund was 746.84 billion rubles, which is equivalent to 26.57 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:
- 11.08 billion US dollars
- 9.04 billion euros;
- 1.58 billion pounds sterlings.
The aggregate calculated income from placing funds of the Reserve Fund recalculated in dollars in the Bank of Russia’s foreign currency accounts for a period from January 15, 2011, to June 30, 2011, was 0.15 billion US dollars, which is equivalent to 4.10 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts from January 1 to June 30 was a negative value of (-) 28.07 billion rubles.
The National Wealth Fund
The aggregate amount of the National Wealth Fund was 2 600.00 billion rubles which is equivalent to 92.61 billion US dollars including:
1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
- 28.25 billion US dollars;
- 24.60 billion euros;
- 4.47 billion pounds sterlings;
2) 437.02 billion rubles and 6.25 billion US dollars were deposited with Vnesheconombank
In June of 2011 in order to invest the Fund’s resources more efficiently and subject to Russian Government Resolution dated January 19, 2008 № 18 refund dates of deposits with Vnesheconombank worth 2.00 billion US dollars and 0.75 US dollars placed through using the Fund’s resources were changed from July 1, 2011 to December 27. 2012 and from October 31 2011 to April 2013 respectively.
The aggregate calculated income from placing funds of the National Wealth Fund recalculated in dollars in the Bank of Russia’s foreign currency accounts for a period from January 15 to June 30, 2011, was 0.39 billion US dollars, which is equivalent to 10.88 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts from January 1 to June 30, 2011 was a negative value of (-) 77.10 billion rubles and the exchange rate difference from recalculating funds placed on Vnesheconombank’s deposits in US dollars was a value of (-)15.02 billion rubles.
The aggregate income from placing the Fund’s resources on Vnesheconombank’s deposits from January to June of 2011 was 14.49 billion rubles which is equivalent to 0.49 billion US dollars.
Indicators of the aggregate amount of the Reserve Fund and the National Wealth Fund as well as of calculated incomes from placing funds of the Reserve Fund and the National Wealth Fund were calculated on the basis of official exchange rates of foreign currencies set by the Bank of Russia as of the date prior to the reporting date and of cross rates calculated on the basis of the said exchange rates.
Detailed statistics on transactions with funds of the Reserve Fund and the National Wealth Fund is posted on the Internet site of the Russian Finance Ministry in the following sections: “The Reserve Fund” and “The National Wealth Fund” in appropriate subsections in Russian and English, the statistics is updated on a regular basis.
Vnesheconombank Chairman Vladimir Dmitriev Speaks at the 15th Annual Conference of IC Renaissance Capital’s Investors
Speaking at a plenary session on the second day of the 15th annual conference of IC Renaissance Capital’s investors, Vnesheconombank Chairman Vladimir Dmitriev began with a topical issue of the investment climate in Russia.
“By addressing certain tasks we’ll be able to significantly improve the situation for investors in Russia in general. One of these tasks is an appropriate preparation of projects: only 40% of applications for financing projects that Vnesheconombank received last year are in line with initial formal requirements for projects. Very few applications passed a more thorough test. Last year’s outflow of capital from the country (here I mean investment rather than speculative money) testifies indirectly to the lack of worthy projects for investment”, said Mr. Dmitriev.
According to V. Dmitriev this problem became increasingly evident when they started to address the problem of mono-cities. Despite the fact that significant funds were allocated to reorient the economy of mono-cities, 71 out of 335 mono-cities failed to submit comprehensive development plans. “Not all municipalities can accomplish such a task”, explained Mr. Dmitriev. In Vnesheconombank Chairman Vladimir Dmitriev’s opinion only professional investment consultants are capable of working out this sort of strategies and structuring investment projects qualitatively.
Origin: Official Site of the Conference
Vnesheconombank, Export Credit Agencies Coface and SACE Agree to Develop a Scheme for the Sales of Sukhoi Superjet 100 Aircraft
In the Course of the Export Finance Conference in the G20 format in Paris (France), an official ceremony to sign a trilateral Agreement on Cooperation between State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, France’s Export Credit Agency Coface and Italy’s Export Credit Agency SACE was held.
On the Russian side the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev, on the French side - by Coface Director General Mr. Jean Mar Pillu, on the Italian side – by SACE Director General Alessandro Castellano
The Agreement is aimed at setting up an integrated system of funding the sales of Sukhoi Superjet 100 aircraft using a credit leasing scheme to fund export supplies of aircraft to foreign purchasers against insurance coverage of export credit agencies SACE and Coface.
An idea that Vnesheconombank is to arrange financing of the sales of Sukhoi Superjet aircraft by joint venture Superjet International S.p.A. was approved by Vnesheconombank’s Supervisory Board in December of 2010.
This Agreement was signed to build on the agreements reached at the multilateral talks with the participation of representatives from the French Finance Ministry, the Russian Finance Ministry, the Russian Economic Development Ministry, export credit agencies SACE , Coface, Finmeccanica S.p.A., OJSC Sukhoi Company, CJSC Sukhoi Civil Aircraft Company as well as Russian-Italian joint venture Superjet International S.p.A.
This Agreement’s implementation would give an additional impetus to improved cooperation between Vnesheconombank, SACE and Coface and allow the parties to significantly diversify risks in funding the sales of Sukhoi Superjet 100 aircraft and would also promote the development of Russian exports.
Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34