Vnesheconombank Ready to Support Projects Under Yenisei Siberia Macroregion Development Programme
Vnesheconombank is ready to consider participation in projects included in the Yenisei Siberia macroregion development programme and consistent with the Bank’s investment priorities. The Bank is willing to find, prepare and structure projects for the Yenisei Siberia portfolio. Yenisei Siberia can also include Vnesheconombank’s projects, according to Vnesheconombank’s Deputy Chairman and Member of the Board Pyotr Zolotarev, speaking at the Krasnoyarsk Economic Forum.
“The Boguchany pulp mill construction project of Kraslesinvest (part of Vnesheconombank Group) is included in the Yenisei Siberia project portfolio. Vnesheconombank is ready to be more than a partner in carrying out certain projects. As a national development institution with competencies in project evaluation and analysis, Vnesheconombank is also able to take part in setting up the project to develop the Yenisei Siberia macroregion. The project’s roadshow showed us robust, comprehensive business projects consistent with Vnesheconombank’s philosophy,” he said.
“We saw a series of detailed presentations prepared and initiated by the national majors, large companies, and they are ready to invest many billions of roubles in each of these projects. The size of the projects and the fact that they affect several regions allowed us to integrate them into one large-scale project called the Yenisei Siberia macroregion,” Krasnoyarsk Territory Acting Governor Alexander Uss said after the roadshow.
“We did not organise this presentation to share our hopes. We are trying to make sure that each project becomes an important driver of business growth. I view this presentation as an invitation to negotiations and I hope that our negotiations will continue, including today, at numerous specific venues,” he added.
The Yenisei Siberia project involves completing major investment projects worth over 500 billion roubles within ten years. The Yenisei Siberia macroregion is made up of the Krasnoyarsk Territory, the Republic of Tuva and the Republic of Khakassia.
The pulp mill will be one of the wood-processing facilities in the Boguchany District, Krasnoyarsk Territory. The project operator is Kraslesinvest, a subsidiary of Vnesheconombank. In 2017 Vnesheconombank approved financing for Kraslesinvest to prepare a feasibility study and carry out a pre-project evaluation for the pulp mill. Estimated at 100 billion roubles, the project will create over 2,000 jobs. After receiving the feasibility study and evaluating the final performance indicators of the new facility, Vnesheconombank will consider providing financing for pulp mill construction. The mill will be Russia’s first greenfield project to build a pulp production facility for the past 30 years.
The forum also included Vnesheconombank’s pitch session with the involvement of Vnesheconombank’s regional managers in the Krasnoyarsk Territory. Infrastructure projects for the region were presented by their initiators.
In 2017 Vnesheconombank took a new approach to regional operations, mainly aimed at creating a wide project funnel and selecting projects in the regions. The Bank defined four key elements of the new model for regional operations: regional managers; online applications for financing; cooperation with the Agency for Strategic Initiatives and governors’ project offices; “off-the-shelf” model solutions for specific sectors in different regions.
Konstantin Grinfeld, head of Vnesheconombank’s Division for Promising Project Selection, spoke of Vnesheconombank’s new model for regional operations and its initial results at a round-table discussion about development institutions’ models for regional operations in relation to encouraging investment in the regions.
Vnesheconombank Starts to Finance Russia’s Largest Modern Hydrocarbon Processing Project in Tobolsk
Vnesheconombank has started to finance SIBUR’s ZapSibNeftekhim project to build a hydrocarbon processing facility. The first tranche is 100 million US dollars. The Bank’s Supervisory Board agreed in December 2017 to provide financing of 400 million US dollars for the project.
“In accordance with the Development Strategy until 2021, Vnesheconombank is involved in project financing in high-technology industries. Vnesheconombank’s strategy and business model specify 26 key industries in each priority investment area. The Bank formulates industry-specific plans. The Polymer Chemistry industry business plan received approval from the Strategy Committee of the Supervisory Board. To build up a high-quality portfolio, we make use of sectoral expertise and select projects in close cooperation with relevant ministries and major market players,” Vnesheconombank’s First Deputy Chairman and Member of the Board Dmitry Kurdyukov said.
The project is designed to develop deep conversion of by-products of Western Siberian oil and gas production, including associated petroleum gas (APG). The project involves the construction of units to produce various grades of polyethylene (1.5 million tonnes) and polypropylene (500,000 tonne). The new facility will make import-substituting polymers and will give an added impetus to finding energy-efficient and green solutions for various manufacturing segments of the economy (pipes and windows for community facilities, automotive parts and components, medical equipment and materials).