On February 27, 2018, the international rating agency Standard & Poor’s raised its long- and short-term foreign currency issuer credit ratings on Vnesheconombank to ‘BBB-/A-3’ from ‘BB+/B’.
At the same time, S&P raised its long- and short term local currency ratings on VEB to ‘BBB/A-2’ from ‘BBB-/A-3’. The outlook is stable.
The upgrade reflects similar rating actions on the Russian Federation. In its press release, S&P indicates VEB’s ‘critical role for Russia as the government’s prime public development institution.’ The VEB Group’s assets currently represent over 4% of Russia’s GDP.
“Upgrade of Vnesheconombank’s ratings following that of Russia’s sovereign credit rating indicates a positive evaluation and appreciation of our operations as a development bank with consistent support from the government. S&P believes that there is a high likelihood of the government’s support in future. Of course, in other circumstances, without sanctions and with us having an access to global capital markets, the effect of obtaining an investment grade rating would be much more noticeable. However, it is an important decision given VEB’s new co-investment paradigm. Undoubtedly, our existing partners will welcome the upgrade. It will also help attract traditionally conservative investors who attach importance to a formal factor - an investment grade rating,” said Nikolay Tsekhomsky, Vnesheconombank’s First Deputy Chairman and Member of the Management Board.
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E-mail: press@veb.ru
Vnesheconombank Blockchain Centre of Competencies to Organise International Forum ‘CryptoEnvironment’ on New Technology Regulation
On 1-2 March 2018, Vnesheconombank Blockchain Centre of Competencies (Blockchain Commune) hosts the First International Legal Forum ‘CryptoEnvironment’. Invitees will include leading international experts from Singapore, Israel, China, Switzerland (Canton of Zug), Belarus and Kazakhstan. The participants will share and discuss various regulatory practices applicable to new financial technologies, in particular, cryptocurrencies. Free live stream will be available at the Forum website, and at the event’s Facebook page.
The Forum will begin with a plenary session with the participation of public officials followed by three panel sessions: Crypto Jurisdiction, Crypto Finance, and Blockchain Service. The Forum will also witness the inauguration of the Legal Lab set up on the basis of the Centre of Blockchain Competencies. The key objective of the Legal Lab is to build a professional community to work out and implement a digital law strategy.
In the context of the Crypto Jurisdiction session, the Forum experts will address major legal regimes for cryptocurrency movement and foreign countries’ approach to the assessment of blockchain technology and products. The participants will specifically focus on the countries with a favourable cryptocurrency regulation regime and express their expert opinion on Russia’s integration into the common global regulatory environment for cryptocurrency movement.
The principal focus of the CryptoFinance session will be on the place cyptocurrencies occupy in the currency system. The participants will analyse the prospects of cryptocurrency as a liquid financial instrument, lay down legality and illegality criteria for cryptocurrency movement, and assess future development of the cryptocurrency market from the perspective of financial institutions, start-ups and users.
During the Blockchain Service session, experts will exchange views on existing blockchain start-ups, look into the future of legal regulation for blockchain technology, and draw up a common legal position on distributed ledgers and blockchain-based management services.
The second day of the Forum will be devoted to the project work of several groups in a foresight format. The participants will be given several hours to devise prediction projects and digital future scenarios and present them for joint discussion.
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E-mail: press@veb.ru