V.V Putin’s Opening Address:
Good evening esteemed colleagues,
Today we are to discuss Vnesheconombank’s mid-term strategy up to the year 2016. I’d like to note that the Bank’s business experience as a development institution was taken into account when the strategy was worked out. It is this line of the Bank’s activity that should be enhanced in the coming years. VEB must play a more active role in the investment policy, act as a powerful financial driving force of projects that are designed to change the structure of the Russian economy, make it more sustainable against any external shocks. Top priority should be certainly given to supporting high-technology and infrastructure programs, projects that create new quality jobs.
I’d like to stress that even now VEB is highly instrumental in modernizing the Russian economy. For example, the Bank’s loan portfolio as a bank for development increased from early 2009 by more than 80%. And above all this increase was achieved by funding key industrial enterprises, the high-technology sector, transport as well as the most important construction projects and facilities in electronics, infrastructure and transport mechanical engineering.
I’d like to list objectives VEB will have to address in the coming four years. First, VEB is supposed to invest about 2 trillion rubles in the Russian economy till the end of 2015. These are significant resources – about 2.4% of GDP. The Bank for Development will have to more than double its loan portfolio and the proportion of high-technology and innovations projects should increase from 15 to 20% in the total financing amount.
The Bank’s cooperation with the Agency for Strategic Initiatives will become an important line of its innovative activity. Here, VEB can act as a consultant, provide qualified expert support in selecting projects to be offered by this Agency.
Second, the Bank should increase by many times its support for high-technology exports. We should realize the Bank’s full potential to help our companies to tap into the most advanced, promising markets. By 2016, the amount of support for our exporters, their innovative technological products should be about 90 billion rubles.
In this respect, today we have to approve the Charter of the Russian Export Credit and Investment Insurance Agency and form its governance bodies. The Agency’s charter capital is 30 billion rubles. This new institution will take some of financial risks, help our exporters to tap into international markets and promote high-technology products and services. We expect the Agency to operate effectively. I hope that as early as this year Russian exporters will be able to get their first contract insured with its assistance.
The third and very important line of activity. I’d like to stress that Vnesheconombank’s strategic priority will be to advance programs aimed at providing support for small and medium-sized enterprises. And at the same time top priority will be given to supporting companies operating in the non-trade sector of the economy, to funding innovation projects associated with creating new production facilities, quality products and technologies. And there is no doubt that the Bank will go on participating in housing programs. VEB has already earmarked up to 250 billion rubles to develop mortgage lending including refinancing of housing credits.
Origin: Internet-Portal of the Russian Government
VEB’s Supervisory Board Approves the Bank’s Development Strategy till 2016
Moscow, September 27 – PRIME. VEB’s Supervisory Board approved the development strategy of the Bank for 2011-2015. The strategy will make it possible to make full use of VEB’s instruments as a Bank for Development, VEB Chairman Vladimir Dmitriev told journalists.
“Specifically, the Bank’s loan portfolio is scheduled to amount to 850 billion rubles. VEB Leasing is to conduct leasing transactions for the amount of 150 billion rubles. VEB’s contribution to the development of the Russian economy would amount to more than 2% of GDP”, he said.
According to him the strategy also provides for supporting Russian industrial exports in the amount of about 90 billion rubles till 2016.
“We have approved parameters for conducting transactions on stock markets”, he said.
Dmitriev said that the previous strategy is deemed to have been completed. “Our current strategy aims to fulfill VEB’s potential as a bank for development”, he said adding that in the previous years VEB has failed to achieve this objective in full as it had to carry out crisis management measures in the economy, RIA Novosti reported.
Petr Frakov Appointed as Head of Export Credit and Investment Insurance Agency
Moscow. September 27. INTERFAX- Vnesheconombank’s Supervisory Board approved a charter of the Export Credit and Investment Insurance Agency.
Petr Fradkov was appointed as the Agency’s Director, Vnesheconombank Chairman Vladimir Dmitriev said.
Investments in supporting Russia’s industrial exports are to amount up to 90 billion rubles. Petr Fradkov is appointed as the Agency’s Director, VEB Chairman Vladimir Dmitriev told journalists after the Supervisory Board’s meeting on Tuesday.
VEB Approves Funding of Rusal’s Taishet Plant
MOSCOW, September 27 (Reuter) – VEB’s Supervisory Board approved financing of Rusal’s project on the construction of the Taishet Aluminum Plant in the amount of 40 billion rubles for a period of 15 years, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“All basic parameters have been approved. The funding amount is about 40 billion rubles. The project is to be funded in foreign currency – either in dollars or in euros”, he said after VEB’s Supervisory Board meeting.
VEB is now holding talks on funding the project in full through a credit line of a foreign partner bank.
VEB’s Supervisory Board agreed in principle to fund the project as early as at the beginning of August.
The construction of the Taishet plant started in 2007. During the crisis the project was frozen due to the absence of funds. The construction was renewed and it is now being funded through using Rusal’s own funds.
Depending of the Taishet project’s completion Rusal plans to increase aluminum production to 4.8-4.9 million tons per year against 4.08 million tons in 2010.
VEB’s Supervisory Board Approves Commitment of 39 billion Rubles to Build Sollers-Ford JV
MOSCOW, September 28 – RIA Novosti. Vnesheconombank’s Supervisory Board finally approved extending a 10-year credit worth 39 billion rubles for creating a Sollers-Ford Joint Venture, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“The project’s final version has been presented today with all terms and conditions and with a trilateral agreement (VEB, Ford, and Sollers) with regard to minimizing risks that might emerge upon occurrence of a whole number of circumstances including force major circumstances”, Mr. Dmitriev said.
He said that in the near future the project would be launched.
According to him the credit’s 36 billion rubles will be used for making investments and 3 billion rubles will comprise current assets.
In mid September, at the 10th Investment Forum in Sochi State Corporation Vnesheconombank and OJSC Sollers signed a credit agreement on creating a Sollers-Ford Joint Venture to manufacture commercial cars and all-roaders with a capacity of up to 350 thousand automobiles per year.
In June of 2011, Russian Automobile Company Sollers and American Auto Concern Ford signed an agreement with Vnesheconombank on extending a credit to fund the creation of a joint venture to manufacture automobiles in Russia.
VEB Intends to Use 10% of its Profit to Capitalize SME Bank
MOSCOW, September 28 – RIA Novosti. Vnesheconombank intends to use 10% of its profit annually to capitalize its subsidiary OJSC SME Bank, earlier the Russian Development Bank, Vnesheconombank Chairman Vladimir Dmitriev told journalists on Tuesday.
He said that originally they planned to use 10 billion rubles from the federal budget annually to capitalize this bank. “But there are budget constraints that make it impossible to increase the bank’s capitalization through using budgetary funds”, said Mr. Dmitriev.
Nevertheless, he said that it was necessary to additionally capitalize SME Bank to bring the amount of funds intended for supporting small and medium-sized business to 150 billion rubles by late 2015.
Mr. Dmitriev didn’t rule out that in case of improved world financial conditions and Russia’s improved budget it would be possible to raise a question of supporting the bank through using budgetary funds in the amounts planned earlier (10 billion rubles per year).
VEB’s Supervisory Board Approves Ernst & Young as Auditor of the Bank’s Financial Statements for 2011
MOSCOW, September 27 – PRIME. Vnesheconombank’s Supervisory Board approved Britain’s Auditing Company Ernst & Young as auditor of the State Corporation’s financial statements for 2011, Vnesheconombank Chairman Vladimir Dmitriev told journalists on Tuesday.
“We approved Ernst & Young as VEB’s auditor” said Mr. Dmitriev after the Supervisory Board meeting.
A tender for conducting a mandatory annual audit of the State Corporation’s financial statements for 2011 was announced on July 19, the envelopes with bids were opened on August 24. Russian subsidiary of Britain’s company – LLC Ernst and Young was declared the winner of the tender.
The following three auditing companies were allowed to participate in the tender: CJSC BDO with a bid price of 4.928 million rubles minus VAT, CJSC KPMG (a bid price of 8 million rubles minus VAT) and LLC Ernst and Young (a bid price of 1.1 million rubles minus VAT, RIA Novosti reported.
Vnesheconombank joined the Montreal development institutions forum
Within the framework of the World Bank - IMF Annual Session in Washington (USA), State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” and financial development institutions of Brazil, Canada, China, Germany, Mexico, France and India concluded a Memorandum of Understanding to establish the Montreal Development Institutions Forum.
For and on behalf of Vnesheconombank, the Memorandum was signed by Mikhail Kopeikin, Member of the Board – Deputy Chairman.
The major goal of the Memorandum is promoting Micro-, Small- and Medium-sized Enterprises (“MSME”) and providing a global collaborative platform where the Members can share and exchange best in class knowledge and information on important MSME-related topics.
In the opinion of the Forum participants, multilateral cooperation within the framework of the Forum will enhance the quality of services provided by the development institutions to global standards.
The establishment of the Montreal Development Institutions Forum was initiated by Business Development Bank of Canada.
Founding Members of the Montreal Development Institutions Forum: State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”, Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Business Development Bank of Canada (BDC), China Development Bank (CDB), KfW Bankengruppe, Nacional Financiera (NAFIN), French State Agency OSEO and Small Industries Development Bank of India (SIDBI).
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