Vnesheconombank to Commit 250 million US Dollars to the Fund for the Capitalization of Russian Banks
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the IFC (the International Finance Corporation which is a member of the World Bank Group) signed an Agreement on Financing the Fund for the Capitalization of Russian Banks (the FCRB).
Under the Agreement Vnesheconombank is to commit 250 million dollars to the Fund for the Capitalization of Russian Banks. Vnesheconombank’s participation in the FCRB was approved by the Bank’s Supervisory Board in July of 2011.
The Fund to be established is to invest in the capital of Russian universal second echelon banks actively operating in the regions funding small and medium-sized real-sector businesses.
“The Fund for Capitalization of Russian Banks is to expand access to financing for Russian companies operating in the regions thereby helping to diversify the economy and raise employment”, said Dimitris Tsitsiragos, IFC Vice President for Europe, Central Asia, the Middle East, and North Africa. ‘We hope that the Fund would not only provide banks with required capital but also would contribute to improving corporate governance and increasing their business’ sustainability”.
“The Fund will become an efficient instrument for funding Russia’s real economy including small and medium-sized enterprises”, thinks Vnesheconombank Chairman Vladimir Dmitriev. “We are glad to support this initiative and join our forces and resources to create an instrument to mobilize new capital for Russia’s banking sector”.
Earlier in the course of the Saint-Petersburg International Economic Forum in June of 2011 an Agreement was signed between the Russian Federation and the IFC on the Russian Federation’s participation in funding the FCRB in the amount of 50 million US dollars. At the same time Vnesheconombank and the IFC signed a Memorandum of Understanding on Creating a FCRB.
The IFC which is a member of the World Bank Group is the largest global development institution focusing its activity on private sector in the countries with developing and transition economies. The IFC contributes to sustainable growth in developing countries through funding investments, offering consulting services to companies and governments and mobilizing capital in international financial markets. In the 2011 financial year, despite the continuing global uncertainty, the Corporation helped its customers create new jobs, improve activity ecological indicators and provide support for local residents. The IFC’s amount of investments for this year was an all-time high of $19 billion. Additional information is available at www.ifc.org.
State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” was established in 2007 under the Federal Law “On the Bank for Development” by means of reorganization of the Bank for Foreign Economic Affairs of the USSR. Vnesheconombank is a key instrument for implementing the state economic policy that is primarily focused on removing infrastructure restrictions on economic growth, enhancing natural resources utilization efficiency, developing high-tech industries, unleashing innovative and industrial potential of small- and medium-sized enterprises (SMEs), as well as ensuring support for exports of industrial products and services. Vnesheconombank participates in implementing projects that are of priority importance for the development of Russia’s economy, but in view of their large-scale character, complexity and long payback periods experience resource shortage coming from the private sector.
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Information Report 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 December 1, 2011
The Reserve Fund
The aggregate amount of the Reserve Fund was 801.77 billion rubles, which is equivalent to 25.60 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 November 31, 2011, was 0.40 billion US dollars, which is equivalent to 12.50 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts from January 1 to November 31, 2011 was a positive value of 26.86 billion rubles.
The National Wealth Fund
The aggregate amount of the National Wealth Fund was 2 .764.40 billion rubles which is equivalent to 88.26 billion US dollars including:
1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
27.99 billion US dollars;
24.41 billion euros;
4.43 billion pounds sterlings;
2) 455.02 billion rubles and 6.25 billion US dollars are deposited with Vnesheconombank.
The aggregate income from placing the Fund’s monetary resources on Vnesheconombank’s deposits from January to November of 2011 was 30.03 billion rubles which is equivalent to 1.01 billion dollars.
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 November 30, 2011, was 1.04 billion US dollars, which is equivalent to 32.69 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts from January 1 to November 30, 2011 was a positive value of 67.00 billion rubles and the exchange rate difference from recalculating funds placed on Vnesheconombank’s deposits in US dollars was 5.28 billion rubles.
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.
Origin: Press Service of Russia’s Finance Ministry
The 2nd Annual Forum “Small and Medium-Sized Enterprises – Contribution to the New Economy” Held in Moscow
The Second Annual Forum “Small and Medium-Sized Enterprises – Contribution the New Economy” was held on November 30, 2011 in Moscow. The Forum was organized by OJSC SME Bank incorporated in Vnesheconombank’s Group.
Russian Prime Minister Vladimir Putin sent greetings to the Forum’s participants and organizers.
The Forum’s participants discussed prospects for the Government Program of Providing Financial Support for Small and Medium-Sized Enterprises, summed up SWE Bank’s performance for 2011 and voiced plans for 2012-2015.
In attendance of the Forum were Vnesheconombank Chairman Vladimir Dmitriev, Board Member – Vnesheconombank Deputy Chairman Mikhail Kopeikin, representatives of OJSC SWE Bank’s business partners, representatives of international development institutions, heads of commercial banks, leasing companies, regional SME support funds.
Speaking at the Forum, Board Member – Vnesheconombank Deputy Chairman Mikhail Kopeikin said that the total amount of supporting small and medium-sized enterprises by the banks of Vnesheconombank’s Group increased to 300 billion rubles from January 1, 2012.
In the course of the Forum, Vnesheconombank signed an agreement on extending a guarantee as security for OJSC Spurt Bank’s obligations to the German Banking Group KfW and a Memorandum of Partnership and Cooperation to Support Innovative SMEs with the Russian Technological Development Fund.
By the established tradition, after the Forum banks, infrastructure institutions and businessmen from various Russian constituent entities were presented with awards for their significant contribution to implementing the Government Program of Providing Financial Support for SMEs.
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On November 28-30, Board Member – Vnesheconombank Deputy Chairman, Chairman of the Russia-Brazil Business Council Sergei Vasiliev, Vnesheconombank Deputy Chairman Andrei Sapelin participated in a business mission to Brazil (Rio de Janeiro) on “Opportunities for Developing Business between Russia and Brazil in Energy Efficiency, Resource Saving, Fuel and Energy Complex”. From the Russian side this Forum was organized by the Russian Economic Development Ministry, the Russian Trade Promotion Office in Brazil and from the Brazilian side - by the Federation of Industries of the State of Rio de Janeiro (FIRJAN).
The business mission is for the most part aimed at searching for new forms of cooperation and for joint projects and establishing business ties with potential Brazilian and Argentine partners.
The Russia-Brazil Business Council was set up in 2004 under the Russian Commerce and Industry Chamber. Since 2009 Vnesheconombank has been responsible for managing the Council. Board Member - Vnesheconombank Deputy Chairman Sergei Vasiliev was elected as Chairman of the Council.
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Participants in the Russian-Brazilian Business Workshop Discuss Cooperation in High-Technology Sectors
RIO-DE-JANEIRO, November 29. /ITAR-TASS Corr. Igor Varlamov/. Russian-Brazilian cooperation in the energy efficiency and resource saving became a central theme of the business workshop that was held here last Monday. In attendance of the Forum organized by the Federation of Industries of the State of Rio-de-Janeiro and the Russian Trade Promotion Office in Brazil were representatives of companies that have promising innovative developments and high-technology commercial projects.
Among those present at the Forum were such well-known Russian high-technology companies and enterprises as R & D Company Saturn, Silovye Machiny, Rostechnologies, the Russian Energy Agency. The Brazilian side was represented by businessmen working in technoparks of Rio-de-Janeiro and the city of San-Jose-dos-Campos, the National Center for Innovations, Entrepreneurship and Technologies.
“This Forum aims to reach specific arrangements in innovation sectors of bilateral cooperation’, said Vernika Nikishina – Head of the American Countries Department of the Russian Economic Development Ministry in her interview to an ITAR-TASS correspondent. According to her the accumulated cooperation experience makes it possible not only to diversify the turnover structure but also to jointly participate in implementing modernization projects including their joint commercialization.
Nikishina stressed that the trade volume between Russia and Brazil in January-September increased by 19 percent from the same period in 2010 and amounted to 5.2 billion dollars. And Russia’s exports to this Latin American country increased by 14.5 percent to 1.5 billion dollars, largely owing to increased share of chemical products.
“At the Forum we are discussing issues of cooperation in high-technology sectors, it is this cooperation we are above all interested in among other things in terms of providing banking support”, said Chairman of the Russia-Brazil Business Council – Vnesheconombank Deputy Chairman in his interview to ITAR-TASS.
Speaking about interbank cooperation projects he said that judging by the latest developments in the world, the process of transferring to payments in national currencies could go faster and that this issue will be top on the agenda at talks in the BRICS format (Brazil, Russia, India, China, the Republic of South Africa).
Vnesheconombank Conducts a Regional Workshop Devoted to Development Projects of the Urals Federal District
Under the educational project “Training of Specialists – Participants in Investment Projects Implemented with the Assistance of Development Institutions” State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ conducted a workshop for specialists working in government and municipal authorities of the Urals Federal District’s constituent entities and representatives of business structures.
A welcoming address was given by Deputy Governor of the Tyumen region Vladimir Mazur, Chief Federal Inspector of the Tyumen region Andrei Rutsinsky and Director of the Department for Investment Policy and Government Support for Entrepreneurship in the Tyumen region Vadim Shumov.
The workshop’s participants were informed in great detail about main lines of Vnesheconombank’s investment activity, principles and criteria of selecting investment projects, terms of projects’ financial organizational support with the use of public private partnership mechanisms. As part of the workshop a presentation of Vnesheconombank’s subsidiary – VEB-Leasing was made. In the course of the round-table discussion “Investment Potential of the Urals Federal District” specialists of Vnesheconombank’s Group commented on the investment projects provided to the workshop’s participants.
In the attendance of the workshop were 50 representatives of the regions comprising the Urals Federal District.
Vnesheconombank signed agreements on cooperation with the following Russian constituent entities of the Urals Federal District: the Sverdlovsk region, the Chelyabinsk region, the Khanty-Mansi Autonomous Area, the Yamalo-Nenets Autonomous Area. An agreement on cooperation between the Kurgan region and CJSC Tobolenergo in modernizing the public utility system was also signed.
Vnesheconombank participates in implementing the following investment projects of the Urals Federal District:
the Koltsovo Airport Modernization ( the total amount of investment is 3.369 billion rubles, with Vnesheconombank’s participation share being 2.3 billion rubles);
construction of the Urengoi power station (the investment amount is 24.48 billion rubles with Vnesheconombank’s participation share being 21.28 billion rubles through purchasing OJSC INTER RAO UES shares by the Bank.
construction of a Propylene Manufacturing Integrated Facility with a capacity of 500 thousand tons per year in the city of Tobolsk (the amount of investments is 2.43 billion US dollars, with Vnesheconombank’s participation being 1.44 billion US dollars). The projects was presented with several awards of foreign journals: Project Finance – “European Deal in Petrochemestry”, Trade Fianace – “The Best Deal of 2010”, EMEA Finance – “The Best Deal of 2010 in the Chemical Sector of Central Eastern Europe”).
At present Vnesheconombank is considering 14 investment projects in the Urals Federal District worth 175.3 billion rubles, the Bank’s projected participation share is 121.3 billion rubles. More than 21.1 thousand jobs are scheduled to be created as a result of the investment projects’ implementation, budget revenues are to increase by 87.4 billion rubles.
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