The XV International Investment Forum Sochi 2016 saw Vnesheconombank and JSC Russian Railways sign a cooperation agreement.
For Vnesheconombank, the agreement was signed by Chairman Sergey Gorkov, for JSC Russian Railways – President Oleg Belozerov.
The parties have agreed to promote and expand strategic cooperation between the VEB Group and the Russian Railways Holding.
Sergey Gorkov: "This strategic agreement is of importance to us since JSC Russian Railways is the largest transport corporation in Russia. In its turn, our subsidiary VEB-Leasing is also a major player in the railway services market. We see the potential in terms of not only railroad cars but also special equipment, locomotives, and property complex.".
In compliance with the document, VEB will be a partner of the Russian Railways Holding to lease, rent out, or otherwise lawfully make available the Bank’s property to the Russian Railways Holding for any transactions of the latter.
Oleg Belozerov: "For us, leasing as an instrument to boost efficiency is taking centre stage. It will allow us to use our assets more efficiently. We need new, state-of-the-art and regularly modernized equipment. Leasing will make it possible.".
A task force comprising Vnesheconombank and JSC Russian Railways’ representatives has been set up to implement the agreement, as well as to select and negotiate optimal financing conditions for investment programmes and projects of the Russian Railways Holding drawing on the latest banking systems and technologies. Furthermore, the agreement provides for establishing joint ventures and other forms of incorporation, as well as acquisition of assets.
Opening remarksDmitry Medvedev, the Chairman of the Russian Government, Chairman of Vnesheconombank's Supervisory Board
At its meeting on 27 September 2016, the Supervisory Board’s agreed the terms of financing for Vnesheconombank’s two major investment projects:
- Amendments were made to the terms of financing for projects delivered by Bryansk Meat Company LLC and designed to build and increase the capacity of, a complex to produce high-yield beef cattle and a meat processing complex, including amendments to the distribution of financing limits and payment schedule. To complete the projects, Vnesheconombank will provide the company with USD 592mn;
- Amendments were made to the financing structure of a project by the Transmashholding Group. The project provides for delivery of railway cars for the Moscow Metro, with a RUB 27.62bn loan facility to finance the project approved by the Supervisory Board on 29 March 2016.
The Supervisory Board acknowledged a business priorities report of VEB-Leasing whose business model will be refocused to address the strategic aims of the Bank for Development. In particular, these include promotion of priority industries and infrastructure, export support, and facilitation of state programmes designed to develop national equipment manufacturing.
Furthermore, the meeting approved the closure of Vnesheconombank’s regional representative offices and extension of moratorium on sponsorship and charity work till the end of this year. Initially, the moratorium was imposed in March this year till 30 September 2016.
The Supervisory Board also agreed the basic approaches to Vnesheconombank’s functional structure formation.