Payments on the Russian Government Securities Denominated in Foreign Currency
Acting in compliance with the terms and conditions of Eurobonds and on the instruction of the Russian Ministry of Finance, State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” transferred to Citibank N.A., London Office USD 159,365,437.50 worth of funds in payment for interest on the USD 2.5 billion bonds issued by the Russian Government in 1998 and maturing in 2028.
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.