On 21 December, Vnesheconombank's Supervisory Board approved the Bank's strategy to 2021. According to it, the Bank is to focus on five core priorities:
- financing high value added manufacturing projects;
- developing infrastructure;
- supporting non-commodity export;
- contributing to the use of defense technologies in civil manufacturing;
- backing innovation and projects under the National Technology Initiative.
Vnesheconombank will operate on a new level: it will search for projects that comply with priorities of the government, provide a deep analysis of business projects in cooperation with clients, attract direct co-financing to projects, monitor project progress using cutting-edge technologies.
During the meeting, the Supervisory Board considered Vnesheconombank's participation in the Ivanovo Region Polyether Plant Project. The total project value is over RUB 25 bn, it is aimed at import substitution in the consumer goods industry. The project is implemented in Vichuga, a single industry town. The capacity of the plant is expected to reach 175,000 tons of polyester fiber per year and 30,000 tons of polyester chips per year.
The Board members also discussed the setting of new sovereign risk limits for the Socialist Republic of Vietnam. This will allow to effect the transaction involving financing of Russian power equipment supplies as part of implementation of Power Plant Project in Vietnam.
The Supervisory Board decided to suspend the consideration of charity and sponsorship issues until the end of 2017.
Memorandum of Understanding with JBIC and Memorandum of Understanding with JBIC and CJSC Nakhodka Mineral Fertilizer Factory
On 16 December 2016, Vnesheconombank and Japan Bank for International Cooperation (JBIC) entered into a memorandum of understanding in Tokyo (Japan) to establish closer economic cooperation between Russia and Japan. The document was signed during a Russia-Japan Summit.
The parties are to provide joint financing for projects in the Russian Federation, primarily in the Eastern Siberia and Far East, and for foreign trade contracts between Russian and Japanese companies. The document sets out a list of sectoral priorities. Particularly, these include projects in infrastructure, energy, energy efficiency, high value added manufacturing in the petrochemical industry, wood processing and machine building.
Also Vnesheconombank, Japan Bank for International Cooperation (JBIC) and CJSC Nakhodka Mineral Fertilizer Factory entered into a memorandum of understanding about the Nakhodka Mineral Fertilizer Plant Project (Primorsky Krai). The document was signed during a Russia-Japan Summit.
The Nakhodka Mineral Fertilizer Plant Project includes construction of a complex with an annual capacity of 2.2 mn t ammonia, 2 mn t carbamide and 1 mn t methanol. The full design capacity is to be reached in 2022. Total project costs are estimated at USD 6.3 bn. The plant will create up to 2000 new jobs, allow to launch a new professional training programme at the Far East Federal University and generate taxes receipts of RUB 11 bn p.a. to the budgets of different levels.