Vnesheconombank's Supervisory Board approved the purchase of up to 100% RUB 10 bn 15-year bonds of PAO KAMAZ secured by a state guarantee. The purchase is to be financed from pension funds. The funds will be invested in the project for developing new KAMAZ models and upgrading the production lines.
A decision was made to establish a non-commercial organisation named Industrial Assets Fund. The new organisation will focus on debt restructuring for big industrial facilities and will aim to improve the effectiveness of their use. Leonid Frumkin will be appointed as CEO of the Fund.
During the meeting it was decided to close Vnesheconombank's representative offices in Zurich, Paris, Johannesburg and New Delhi. The bank's representative office in Mumbai will continue its work, the representative office in Beijing will be expanded. The work of US and UK's representative offices will be improved through cost-cutting and personnel reduction measures.
The Supervisory Board also made a number of executive changes.
- Andrey Sapelin has been released from his duties as Member of the Management Board.
- Tatyana Sakharova has been appointed as Deputy Chairman – Member of the Management Board of Vnesheconombank. She will supervise the activities of the Bank's corporate and investment units.
- Alexey Ivanchenko has been appointed as Vnesheconombank's Deputy Chairman. He will coordinate relations with federal executive authorities, the work of the bank's collective bodies (Committees, Management Board, Supervisory Board), Public Relations and Mass Media Department as well as the Chairman's Office and Vnesheconombank's Administrative Department.
- Yulia Loktionova has been appointed as Director of Internal Control Service.
BRICS Interbank Cooperation Mechanism member banks and the New Development Bank announce intention to develop cooperation in priority sectors
During the BRICS summit in Goa, India, member banks of the Interbank Cooperation Mechanism and the New Development Bank signed a Memorandum of understanding.
The document was executed by the heads of Vnesheconombank, Brazilian Development Bank (Banco Nacional de Desenvolvimento Economico e Social (BNDES)), China Development Bank (CDB), Eximbank of India, Development Bank of Southern Africa and the New Development Bank.
The Memorandum defines main areas of interaction and provides for the possibility of cooperation between the banks for the purposes of effective implementation of priority projects in the BRICS states. Particularly, this involves cooperation in spheres of investment, project finance, mutual provision of guarantees, foreign exchange operations, bond issuance, interaction in the HR field and knowledge sharing.The BRICS Interbank Cooperation Mechanism was formed as a result of signing of a Memorandum on Cooperation by BRICS nations’ development and export support institutions in 2010. In 2011, Development Bank of Southern Africa (DBSA) joined the Mechanism. 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 valuable and regional projects. The BRICS bank partners include 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 (Eximbank of India), the Development Bank of Southern Africa (DBSA).