Vladimir Putin's Opening Address
Good afternoon esteemed colleagues. Today we are holding a final meeting of Vnesheconombank’s Supervisory Board in the outgoing year, and I would like first of all to thank the Bank's management and all its employees for their intensive and hard work in the outgoing year.. A great deal has been accomplished almost without fail. The scale of the work is impressive. I very much hope that the Bank will go on operating in a highly professional way..
We face major challenges of modernizing our economy and making it more competitive and innovative. There are many challenges involved in developing territories. Vnesheconombank is actively working in practically all these areas.
I must say that VEB's loan portfolio has increased by almost 40% in the first eleven months of this year as a development institution - not just as a rank and file financial institution.
Moreover, Vnesheconombank is acquiring and has already practically acquired new instruments for achieving the tasks assigned to it. I mean above all the fact that the management company of the Russian Direct Investment Fund has started operating. It has been created quite recently, but the management company has projects worth 180 billion rubles in its loan portfolio. This is no mean achievement.
Esteemed colleagues, despite well-known difficulties and troubling developments in the world economy, and they are indeed alarming, some complicated processes are also taking place in advanced market economies and some countries are already in recession, that is, their economies have experienced a contraction in GDP for three consecutive months, and there are gloomy forecasts for some euro-zone countries and the States (things have improved a bit there, but on the whole the problems persist) I would like to note that the Direct Investment Fund we have set up may be very much needed because there are not many promising and reliable projects in the world, but we have some. Global investment funds have considerable resources: they are looking for places to spend these resources. As you know, most recently I’ve been at the launch of the Kyzyl-Kuragino railway. Here we have an example of such a project: huge deposits, top quality coal and an absolutely reliable sales market. There are not many such projects in the world, and it is not the only one in Russia. So, I would like you to actively launch such projects and to work more energetically with our partners in the Investment Fund. Step up your efforts! I am sure that we won’t even have to use our reserves and budget resources. Why should we if those who have the money are looking for projects to invest in and we have them? All we need is to work more actively in this direction.
The North Caucasus Development Corporation, set up under your Bank's auspices, has started operating. The Russian Export Credit and Investment Insurance Agency also faces major tasks. We expect the Agency to take energetic steps to support our enterprises, above all of course, those in high-tech sectors. That is what it was created for. Oil and gas workers and metallurgists have their niches in world markets. We need to support high-tech exports.
I would like to stress once again that the tasks aimed at creating points of growth and supporting innovations are linked to supporting exports. I expect VEB’s team to go on working efficiently and consistently.
Now I’d like to say a few words about the current agenda. I see here some interesting projects that stand out not only in terms of their scale, but are in my opinion potentially very useful for improving our economy. The first of these is the project to develop the potassium and manganese salt deposits and to build a mining and concentration plant in the Perm Territory. Why did it catch my attention? Not only because VEB is committed to investing heavily in it (more than 40 billion rubles), but because it is a step that should eventually lead to demonopolization of that sector of our economy. Demonopolization is very important. This is not to say that we should eliminate someone, on the contrary, when a competitive environment is created, the situation improves and prices for a needed and important agricultural product are stabilize, the export potential increases, and in this case VEB does not only enter the capital worth 6.7 billion rubles, but also extends a 33 billion ruble credit. That is a huge amount. The capacity of the mining and concentration plant will be about 2 million tones of potassium chloride, of which 600,000 tonnes should be sold on the domestic market. I am sure it will give an extra boost to our agro-industrial complex.
Second, a 25 billion-ruble credit line is to be opened for the construction of the middle segment of the Western High-Speed Diameter motorway in St Petersburg. It is a very important project for the northwest of our country, not only for the city of five million but for the entire northwest. There’s no doubt, it will mark a step forward in developing our infrastructure and in giving a second wind to this part of our country, giving it a new character that is in line with European standards, and it will free this city of five million people from an excessive number of heavy vehicles, many of which still pass through central parts of the city even after the ring road around Petersburg was built. The Western High-Speed Diameter is very important for the city.
I was in Petersburg on December 23 attending the ceremony of signing relevant documents. I would like to thank all those who worked actively in order to draw one more line and create necessary conditions for the work to start.
Finally, a 2.5 billion-ruble credit is to be extended for the "Film Club: Culture, Education, Communications" project involving the creation of a cluster of such clubs within the KinoCity project. At least 250 multimedia cinemas are to be built, above all in small and medium-sized towns. This kind of social infrastructure is in short supply in our small and medium-sized towns, and we should do our best to launch it. We have discussed it more than once. I know some agencies have their own ideas on that score, but I would like to stress that we must support this kind of projects. Such clubs are unevenly distributed throughout our country and they need to be supported. The situation is more or less normal in cities with a population of over a million, while in small and medium-sized cities the number of such clubs is diminishing. They must be supported.
Let's start our work.
Origin: Internet-Portal of the Government of the Russian Federation
Vnesheconombank Chairman Vladimir Dmitriev held a business meeting with representatives of development institutions in order to assist in implementing development projects in the innovation sphere.
The meeting’s participants discussed issues of setting up a VEB-Innovations Fund (the Fund for Financial Promotion of Skolkovo Projects). Vnesheconombank is undertaking this line of activity in accordance with the recently approved Strategy of Russia’s Innovative Development for a period of up to 2020. The Fund is scheduled to provide support for the already existing innovation programs as well as to work out new initiatives aimed at creating an innovation sector in the Russian economy.
For the most part, the Fund’s activity is designed to contribute to the development of the Russian Government’s innovation programs, create an innovation infrastructure, raise high-risk (venture) investments for Russian innovation companies, assist in attracting foreign advanced technologies to Russia, promote Russian innovations to the world market and raise direct investments from international investors for Russia’s industrial-technological sector.
Vnesheconombank’s Supervisory Board approved the creation of a VEB-Innovations Fund in April of 2011. The Fund is expected to start operating as early as in January of 2012.
In the course of the meeting its participants discussed Vnesheconombank’s cooperation with development institutions in implementing development projects on the territory of the Russian Federation. Top priority was given to implementing Vnesheconombank’s Program to Assist in Funding Development Projects as well as to the Far East and the Baikal Region Development Fund.
In the attendance of the meeting were Director General of the Federal Project Finance Center (OJSC) Maria Kalugina, Director General of the Far East and the Baikal Region Development Fund Gennady Alexeev as well as Head of the working group on creating a VEB-Innovations Fund Alexei Morozov, Board Member-Vnesheconombank Deputy Chairman Anatoly Ballo, Director of Vnesheconombank’s Public Private Partnership Center Alexandr Bazhenov.
Open Joint Stock Company The Federal Project Finance Center was set up under the Resolution of the Russian Government dated June 2, 1995 in order to prepare and implement projects provided for by the agreement between the Russian Federation and international financial institutions as well as projects funded through using funds raised from other foreign sources. The Company’s shares are wholly owned by the Russian Federation. Under the Order of the Russian Government dated April, 21, 2010 and the Order of the Federal Property Management Agency dated October 29, 2010, 10% of shares were contributed to Vnesheconombank’s charter capital. The Federal Project Finance Center is an operator of Vnesheconombank’s Program to Assist in Funding Development Projects.
OJSC The Far East and the Baikal Region Development Fund was set up under the decision of Vnesheconombank’s Supervisory Board dated September 29, 2011 in order to assist in developing investment activity in constituent entities of the Far East and the Baikal region as well as to prepare quality projects of regional and urban development . The Fund was registered in the city of Khabarovsk in November of 2011. It will have its representative offices in Moscow, Vladivostok and in one of the regions of the Pre-Baikal Territory (Trans-Baikal Territory, the Republic of Buryatia, the Irkutsk region).
Press Office of Vnesheconombank
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Vnesheconombank Was For the First Time Named Among Five Leaders in the Best Money Desk 2011 Nomination
The Moscow International Currency Association has announced the results of a regular annual contest poll. According to the results Vnesheconombank was for the first time named among five leaders in The Best Money Desk 2011 nomination.
The Moscow International Currency Association (MICA) conducts a regular annual contest poll among forex dealers and interbank relations experts in order identify the best ones on the DEPO market, the FOREX market and the FORWARDS&OPTIONS market as well as in the nomination “FINANCIAL INSTITUTES”. Leading experts of Russia’s financial market, namely, monetary market experts, nominee dealers of previous years’ contest polls as well as members of MICA and ACI Russia participated in the poll.
Press Office of Vnesheconombank
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Vnesheconombank to Fund the Construction of a Peeled Veneer Production Facility in the Khabarovsk Region
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’and the Japan Bank for International Cooperation (JBIC) signed a credit agreement on extending credit resources worth 38.25 million dollars for a period of 10 years to Vnesheconombank.
The credit agreement provides for extending financing to Vnesheconombank from the JBIC and the Bank of Tokyo-Mitsubishi UFJ, Ltd, Japan, against the coverage of the Nippon Export and Investment Insurance (NEXI), Japan.
Long-term funds to be provided by the financial institutions will be used by Vnesheconombank to finance a part of the project to construct a peeled veneer production facility with a capacity of 300 thousand cubic meters per year in the city of Amursk of the Khabarovsk region. The project is being implemented by OJSC Dallesprom. Earlier, as part of the project a foreign trade contract on supplying equipment and performing work was signed with Japan’s company Hashimoto Denki Co. Ltd.
The credit agreement concluded with the JBIC testifies to improved business ties between Russia’s and Japan’s financial institutions, a high level of trust in Vnesheconombank and foreign companies’ interest in operating on the Russian market.
The construction of a peeled veneer production facility with an annual capacity of 300 thousand cubic meters in the city of Amursk (the Khabarovsk region) is the first stage of the project to create a Far Eastern Timber Deep Processing Center.
The concept of creating a Far Eastern Timber Deep Processing Center in the Khabarovsk region worth 150.2 million US dollars provides for building complementary timber processing integrated production facilities that ensure the non-waste use of timber logged by OJSC Dallesprom.
Press Office of Vnesheconombank
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ joined the UN Global Compact confirming its intentions to contribute to sustainable and open economy and sustainable development. A decision to join the Treaty was taken by Vnesheconombank’s Board.
The UN Global Compact’s activity is designed to disseminate in the business community ten principles in human rights, labor, the environment and anti-corruption. The UN Global Compact’s principles are based on the Universal Declaration of Human Rights, declarations of the International Labor Organization, the Rio Declaration on Environment and Development, the UN Convention against Corruption.
The UN Global Compact is a platform for joint actions by companies – the world’s leaders of corporate social responsibility to address topical social and ecological problems. Vnesheconombank’s participation in the UN Global Compact will provide it with a unique opportunity for promoting principles of corporate social responsibility in the Russian business community and will make it possible to further improve the practice of sustainable development.
Vnesheconombank also undertook to annually report on the progress made in implementing the UN Global Compact’s principles in its activity.
The UN Global Compact is the largest international initiative in the field of sustainable development and establishing global partnership between state and corporate sectors. The Global Compact is comprised of more than 8 thousand organizations from 135 countries including leading foreign financial institutions. More than 50 Russian organizations joined the UN Global Compact.
Press Office of Vnesheconombank
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34