State Duma Gives First Reading Approval to New Legislation on Subscribed Capital for VEB.RF and Other Development Institutions
A plenary session of the State Duma passed new legislation to allocate public budget funds to VEB.RF, Russian Small and Medium Business Corporation and Russian Export Center for their subscribed capital.
The relevant amendments to the federal law on the development bank and to the Budget Code had previously been approved by the specialist committees of the lower house of the Russian parliament on 8 November 2018. In addition, the changes to legislation introduce the role of VEB.RF as a coordinator of development institutions. For this purpose, VEB will participate in managing development institutions and formulate procedures for joint work on projects in order to ensure that instruments of support will be used in an integrated manner.
The draft legislation also concerns the name of Vnesheconombank; the renamed institution will become State Development Corporation VEB.RF. The new name reflects the role of VEB in carrying out the tasks assigned by the Russian President and the Russian Government.
Earlier today, the State Duma gave first reading approval to amendments to the 2018 federal budget, allocating an additional 20.45 billion roubles to VEB.RF for the settlement of its external debt.
VEB.RF Chairman Igor Shuvalov took part in discussions at the Dubai summit of the Global Future Council on Russia. The participants discussed various aspects of global economic development, including the role of cities as centres of international cooperation and technological partnership.
Igor Shuvalov said: “Municipal economy projects produce many positive effects. The service sector is growing, while small and medium-sized businesses have an increasing share of the market. Cultural and social trends are changing. A more successful city attracts better professionals. Cities today make a substantial contribution to the country’s GDP. They help to create a competitive advantage for people.”
According to Igor Shuvalov, urban policy should be formulated and implemented at national level. This makes it necessary to understand which cities are growing, how and why. VEB.RF should ensure the coordination of development institutions’ involvement in the implementation of national projects, including aspects of city development.
VEB, DOM.RF and Russian Small and Medium Business Corporation are working in partnership with Strelka KB and Moscow School of Management SKOLKOVO to develop tools for supporting municipal economy projects. There are 1,114 towns and cities in Russia. Urban dwellers make up 74% of the country’s population.
Igor Shuvalov also attended a joint meeting of the Global Future Councils on Russia and Europe.