Vnesheconombank’s regular Supervisory Board Meeting held

16 july 2015 года
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At its meeting on July 16. 2015,VEB’s Supervisory Board discussed terms of funding a project on the comprehensive development of the Bystrinsk iron-oxide-copper-gold ore depositon the Zabaikalye Territory providing for developing open-pits, constructing an ore mining and processing integrated plant and required transport and engineering facilities. This project is of national significance and it is included in the strategiesfor socio-economic development of the Far East, the Baikal and the Siberia regions and for development of non-ferrous metals industry. Due to the fact thatconsumers of products will be the largest Chinese industrial and trade companies, VEB explored the issue of tied lending with Chinese financing institutions. The project’s total value is 1.378 billion dollars. VEB is to fund the project in yuans in the amount equivalent to 874 million dollars (63% of the project’s value).


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Commentaries to Vnesheconombank’s Consolidated Financial Statements of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and its Subsidiaries for the First Quarter of 2015

13 july 2015 года
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Dynamics of main components of assets and liabilities

(analysis on the basis of comparing balance indicators as of 31.03.2015 and 31.12.2014)

In thethe first quarter of 2015, Vnesheconombank’s assets increased by 28.6 (+0.7%) to 3 914.5 billion rubles.

The growth in assets was for the most part brought about by the increased portfolio of loans extended to customers, it increased for the first quarter of 2015 by 80.5 billion rubles (+3.1%) to 2 712.5 rubles. The proportion of credits to customers in the assets of Vnesheconombank Group for the first quarter increased from 68% to 69%.

The amount of monetary funds and their equivalents on the contrary deceased significantly from the start of 2015 against the backdrop of general reduction in liquidity in the banking system. In the accounting period, their amount decreased by 71.2 billion rubles (-21.8%) and was 254.8 billion rubles.The decrease affected equally both funds in corresponding accounts with credit institutions (owing to non-resident banks which was partly compensated for by increased funds with Russian banks) as well as short term interest-bearing loans (up to 90 days) and deposits with credit institutions.

In the first quarter of 2015, an increase in financial investment assets(by 24.0 billion rubles + 6.2%) and practically symmetric decrease in investment financial assets transferred underloan agreements and made available as collateral under REPO agreements (by 24.4 billion rubles or -23.5%) were associated above all with the repurchase of bonds under direct REPO transactions

The following changes occurred in the resource basis.

The amount of liabilities for the first quarter of 2015 increased by 17.6 billion rubles (+0.5%) to 3 524.9 billion rubles.

In the accounting period the amount of issued debt securities increased by 17.7 billion rubles (+1.8%) to 1 000.9 billion rubles for the most part by way issuing bonds on the domestic market by Vnesheconombank Group.

An increase in the dollar exchange rate against the ruble for the first quarter of 2015 resulted in the increased ruble equivalent of subordinated deposits placed with Vnesheconombank through using financial resources of the National Wealth Fundin order to additionally capitalize Vnesheconombank with 16.1 billion rubles (+5.3%) to 319.1 billion rubles.

The debt to the Russian Government and the Bank of Russia increased by 10.5 billion rubles (+1.9%) to 569.8 billion billion rubles largely because of the increased amount of funds raised by Vnesheconombank from the Bank of Russia which was partly compensated for by a decrease in the debt under repo agreements with the Bank of Russia and by raising deposits of non-budgetary funds by subsidiary banks.

In the accounting period, the amount of funds in banks decreased by 34.8 billion rubles (-3.4%) to 975.7 billion rubles. This was caused by a decrease in funds in corresponding loro accounts as well as by deceased funds placed with Vnesheconombank as collateral against letters of credit as a result of executing the letters of credit.

In the first quarter of 2015, capital increased by 11,0 billion rubles (+2.9%) and as of 31.03.2015 it amounted to 389.6 billion rubles. The positive dynamics of capital was due to the unrealized revaluation of investment financial assets available for sale. As opposed to 2014, when this indicator was negative (-13.9 billion rubles),by the end of the first quarter of 2015 unrealized revaluation of such assets reached a positive value of 21.5 billion rubles. The said change in the unrealized revaluation (by 35.5 billion rubles) was caused not only by increased market value of assets but also to a significant extent by a reclassification of unrealized negative revaluation of securities in the amount of 18.1 billion rublesfrom capital with a simultaneous recognition of a loss from depreciation of the said securities inthe profit and loss statement. Taking into account this reclassification, Vnesheconombank recognized a loss of 9.5 billion rubles in the first quarter of 2015. In addition to recognizing a loss, a reduction of 14.8 billion rubles in the foreign currency conversion fund caused by the fall in the Ukrainian Hryvniaexchange rate against the Russian ruble by 30% had a negative influence on capital.

Dynamics of main profit components

(analysis on the basis of comparing data for the first quarter of 2015 and the first quarter of 2014)

In the first quarter of 2015, Vnesheconombank Group recognized a loss of 9.5 billion rubles, in the first quarter of 2014, the loss amounted to 11.8 billion rubles.

Net interest income amounted to 19.0 billion rubles a decrease of 4.1 billion rubles, (-17.8%) from the same period in the previous year (23.1 billion rubles).

Interest incomes increased by 16.1 billion rubles (+25.2%) as compared to the first quarter of 2014 and amounted to 79.7 billion rubles for the most part as a result of the growth of 17.1 (+43.8%) billion rubles in interest incomes to 56.1 billion rubles under credits to customers which was due to the increased volume of such credits.

Interest expenses increased by 20.2 billion rubles (+49.8%) to 60.7 billion rubles. The growthwas caused for the most part by increasedinterest expenses on funds raised from banks and the Bank of Russia (by 8.9 billion rubles) and issued debt securities (7.0 billion rubles) which was caused by the increase in average amounts and value of funds raised.

In the first quarter of 2015, expenses on transactions with investment financial assets available for sale amounted to 18.6 billion rubles an increase of 15.3 billion rubles from the first quarter of 2014. A significant amount of expenses in the accounting period was caused by the recognition of a loss from depreciation of securities as a result of reclassification of a part of unrealized negative revaluation of securities from capital.

In the first quarter of 2015 as in the first quarter of 2014, there was a negative balance of incomes/expenses with regard to transactions in foreign currency in the amount of 0.5 billion rubles and 5.9 billion rubles. A significant negative foreign currency revaluation in the first quarter of 2014 in the amount of 6.2 billion rubles was associated for the main part with the dynamics of exchange rates of foreign currencies in which investment financial assets are denominated.

In the first quarter of 2015, net incomes from initial recognition of financial instruments, changes in contractual terms and early repayment amounted to 11.9 billion rubles. In the same period of 2014, a net loss of 0.2 billion rubles was recognized in this item. A significant part of income in the accounting period is associated largely with the recognition of incomefrom the extension of the deposit of the Federal Treasury for a ten-year period at a below-market rate for funding banks and legal entities through subsidiary SME Bankfor them to provide support for small and medium-sized enterprises.

Non-interest expenses (minus expenses on forming other reserves and reserves against depreciation of other assets) increased by 3.3 billion rubles to 16.1 billion rubles from the first quarter of 2014.

In the first quarter of 2015, expenses on forming reserves against depreciation of assets and other reserves amounted to 10.0 billion rubles against 16.3 billion rubles in same period of 2014.


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Vnesheconombank participates in the BRICS and the SCO summits events

13 july 2015 года
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In 2015, the Russian Federation holds the presidency of the BRIСS Association and the Shanghai Cooperation Organization.

This year, Vnesheconombank is the presiding bank of the BRICS Interbank Cooperation Mechanism and it presides over the SCO Interbank Consortium. Vnesheconombank Chairman Vladimir Dmitriev is the Chairman of the SCO Interbank Consortium Council and the BRICS Cooperation Interbank Mechanism.

Vnesheconombank’s delegation participated in the following events during the BRICS and the SCO summits (July 8-10, 2015 the city of Ufa):

- A Session of the BRICS Business Council (July 8, 2015). Speaking at the session Vnesheconombank’s Chairman said, “I’m happy to inform you that Vnesheconombank’s employee is to be vice president in the bank from the Russian Federation and a whole number of the New Development Bank’s employees are to be recruited from Vnesheconombank”.

- An Annual Meeting of Heads of Banks - Participants in the BRICS Interbank Cooperation Mechanism (July 8, 2015) President of the New Development Bank KundapurVaman Kamath was present at the meeting as a special guest.

This year, the Cooperation Mechanism marks its fifth anniversary. According to Vnesheconombank Chairman Vladimir Dmitriev, “banks of the BRICS Interbank Cooperation Mechanism and the New Development Bank have similar objectives and that is why our cooperation will have a positive influence on the development of the BRICS countries’ economies”.

- An important event of the summits business agenda was the BRICS and the SCO Financial Forum organized by VEB (July 8, 2015) The Forum was included in the list of main events under Russia’s BRICS presidency. The list was approved by Russian President Vladimir Putin.


In the attendance of the Forum were representatives of major financing institutions and investment companies of the BRICS and the SCO countries, the Group of Twenty (G20), representatives of business, the academic community, federal and regional authorities.They discussed potential ways of cooperation with multilateral development institutions, considered a special role of national development banks’ in supporting sustainable growth and social stability.

In the interval of the Forum Vladimir Dmitriev and KudapurVaman Kamath answered journalists’ questions.


National development banks will select projects for the New Development Bank when it starts to operate. VEB Chairman Vladimir Dmitriev told journalists aboutit. “Both the New Development Bank and national development banks are to select projects, national development banks are to submit projects to consideration by the New Development Bank”, said Dmitriev stressing that VEB is delegating its employees to managerial positions at the New Development Bank.

He said that the BRICS bank was to start operating by the end of this year and that they might start considering projects in spring of 2016. “We proceed from the premise that our cooperation mechanism will start to operate at full strength, the more so, tomorrowwe are to sign a memorandum of understanding on cooperation between national development banks with the New Development Bank. I think that I’ll get back to this issue next spring.

UFA, July 8. / TASS

- A meeting of the BRICS countries heads of state with members of the BRICS Business Council (July 9, 2015)

Vladimir Dmitriev participated in a meeting of the BRICS countries heads of state with members of the BRICS Business Council.

Heads of banks – participants in the BRICS entered into a Memorandum of Intent on Cooperation with the New Development Bank.


On behalf of Vnesheconombank the Memorandum was signed by Chairman Vladimir Dmitriev. The document states the intention of banks – participants in the BRICS Interbank Cooperation Mechanism to interact with the New Development Bank and sets forth possible parameters and lines of such cooperation.

“The Memorandum of Intent on Cooperation with the New Development Bank signed by state development banks of Brazil, Russia, India, China and SRA provides for the New Development Bank to start funding specific projects as early as by spring of 2016”, said Vnesheconombank Chairman Vladimir Dmitriev.

From an interview to TV Channel Russia 24

- The 11th meeting of the SCO Interbank Association Council (July 9, 2015)

Chairman of the Council Vladimir Dmitriev told about the Council’s performance in 2015. In the course of the Council’s meeting, a decision was signed to give an SCO IBA partner bank status to Habib Bank Limited (Pakistan). The heads of banks signed a Joint Statement on the occasion of SCO IBA’s tenth anniversary. The document sums up the results of SCO IBA banks’ activity for the past period as well as identifies priorities of further cooperation.


- A meeting of SCO Council of Heads of State with the participation SCO IBA banks (July 10, 2015)

As part of the summits in Ufa Vnesheconombank’s Chairman held meetings with President of China Development Bank Zhijie Zeng, President of BNDES Luciano Coutinho and President of the Silk Road Fund Wang Yunji.


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Heads of Banks participating in the BRICS Cooperation Mechanism intend to cooperate with the New Development Bank

9 july 2015 года
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Heads of Banks participating in the BRICS Cooperation Mechanism entered into a Memorandum of Intent on Cooperation with the New Development Bank in the presence of BRICS Heads of State in the course of the BRICS Summit in the city of Ufa.

The Memorandum was signed by State Corporation‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, Brazilian Development Bank (BNDES), the China Development Bank (CDB), the Export-Import Bank of India and the Development Bank of Southern Africa.

The Memorandum states intention of Banks participating in the BRICS Cooperation Mechanism to interact with the New Development Bank and sets forth potential parameters and lines of such interaction. Specifically, the Memorandumprovides for possible cooperation in infrastructure and sustainable development.

According to Vnesheconombank Chairman Vladimir Dmitriev, “banks participating the BRICS Interbank Cooperation Mechanism and the New Development Bank have similar objectives and that is why our cooperation will have a positive influence on the development of the BRICS countries’ economies”.

The BRICS interbank cooperation mechanism was formed as a result of signing a Memorandum on cooperation between BRICS nations’ development and export support institutions dated April 15, 2010.The Memorandum is mainly designed to promote all-round, long-term, interbank cooperation between partners in order to enhance trade and economic relations between BRICS member nations as well as provide support for socially meaningful and regional projects. BRICS countries authorized banks are the Brazilian Development Bank (BNDES), State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the China Development Bank (CDB), the Export-Import Bank of India and the Development Bank of Southern Africa (DBSA).


Press Office of VEB
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

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Annual Meeting of Heads of Banks of the BRICS Interbank Cooperation Mechanism held

8 july 2015 года
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As part of the BRICS Summit events, an annual Meeting of Heads of Banks of the BRICS Interbank Cooperation Mechanismwas held.

In the course of the meeting, the heads of banks summed up the results of their five-year cooperation in this format and discussed the current and future joint activities.

A central theme of discussion at the meeting was cooperation with the New Development Bank (NDB). The meeting’sparticipants stressed the importance of the document that states their intention to interact with the New Development Bank and sets forth parameters and principles of such interaction. They plan to sign this document on July 9, 2015 in the presence of heads of state in the course of the BRICS summit. President of the New Development Bank KundapurVamanKamatkh shared his vision of NDB’s future role and told about its potential lines of investment activity.

In his address Vnesheconombank Chairman, Chairman of the BRICS Interbank Cooperation Mechanism Vladimir Dmitriev said, “Taking into account that the BRICS countries are major government state institutions with worldwide prestige and reputation our cooperation will have a favorable impact on establishing the New Development Bank. According to him“banks of the BRICS Interbank Cooperation Mechanism and the New Development Bank have similar objectives and that is why our cooperation will have a positive influence on the development of the BRICS countries’ economies”.

Representatives of the BRICS banks expressed their satisfaction over how cooperation in innovations and high technologies was developing. In order to enhance cooperation in this field a decision was made to establish a permanent working group on innovations and high technologies. And its main goal should be to create an information base of projects in this area for them to be jointly funded.

Banks of the BRICS Interbank Cooperation Mechanism discussed also an issue of payments in national currencies of the BRICS countries. The sides acknowledgedthat if they want to increase the amount of mutual payments in national currencies, they need to look into the obstacles on the way of making such payments including at a legislative level and explore possible ways to remove themas well as business needs to be funded in national currencies.


The BRICS interbank cooperation mechanism was formed as a result of signing a Memorandum on cooperation between BRICS nations’ development and export support institutions dated April 15, 2010.The Memorandum is mainly designed to promote all-round, long-term, interbank cooperation between partners in order to enhance trade and economic relations between BRICS member nations as well as provide support for socially meaningful and regional projects. BRICS countries authorized banks are the Brazilian Development Bank (BNDES), State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the China Development Bank (CDB), the Export-Import Bank of India, the Development Bank of Southern Africa (DBSA).


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Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

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