VEB Group’s Team Visits Zvezda Shipyard in Primorie to See Construction of Aframax Oil Tankers
During a visit to the Primorie Territory, VEB Group’s team was invited to see the Zvezda shipyard. The shipyard started the large-scale construction of Aframax oil tankers, which had not previously been built in Russia.
Tanker deadweight tonnage is 114,000; the ice class (1A/1B) will enable the ships to be used for year-round navigation in ice-bound conditions. The propulsion systems of the green tankers allow them to use both conventional fuel and environmentally friendly natural gas, which ensures compliance with the new pollution control rules for the Baltic Sea and the North Sea. The first tanker launching is scheduled for 2020. At present, the shipyard has orders for 12 Aframax oil tankers.
The Zvezda product range will include vessels with a displacement of up to 350,000 tonnes, components of offshore platforms, ice class vessels, merchant cargo vessels, special vessels and other marine equipment of any complexity, including equipment that had not previously been made in Russia due to the unavailability of launching and hydraulic facilities.
During the Eastern Economic Forum, VEB Group, Rosneft, Zvezda and Sovcomflot entered into several contracts to build two oil tankers for subsequent long-term chartering. In late October 2018, the Supervisory Board of VEB resolved to approve the transaction.
“Support for this sector has a positive impact on the development of related industries, which is a priority for VEB Group as a development institution. VEB.RF is currently considering eight projects aimed at developing the shipbuilding industry in the Primorie Territory; VEB Group’s potential investments are more than 200 billion roubles. The launched projects will create new jobs and improve quality of life,” VEB.RF Chairman Igor Shuvalov emphasised.
VEB Group’s team also visited the construction site of residential houses for future employees of the Zvezda shipyard in Bolshoy Kamen. Two 68-flat houses have already been accepted for operation and occupied. Construction is well under way for a whole urban block in the 6th residential estate. The contractor was selected for the construction of residential houses in two more neighbourhoods. Overall, there are plans to build about 5,000 flats by 2023, which will provide housing for all employees. The possible expanded involvement of the Far East Development Fund (part of VEB Group) in residential construction projects to provide houses for Zvezda employees is under consideration. In collaboration with DOM.RF, the Fund is carrying out the project as instructed by the Russian President.
A session of the Federation Council passed legislation to change the name of State Corporation Vnesheconombank to VEB.RF, introducing several new functions, such as its role as a development institution coordinator.
The amendments are to be made to the Federal Law On the Bank for Development and certain legislative acts of the Russian Federation.
The law changes the name of State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” to State Development Corporation VEB.RF.
The law also assigns new functions to VEB.RF to coordinate the development institutions’ activities as resolved by the Russian Government.
Another law amends the Budget Code. The Government will approve resolutions concerning the authorised capital of VEB.RF in the form of paid-in capital and the amount of its authorised capital that should subsequently additionally be contributed by the Russian Government (callable capital).
State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" redeemed its Eurobonds Series 9 issue on November 21, 2018.
The Eurobonds for a nominal amount of US$ 850 mn were issued on the Irish Stock Exchange in 2013 with a five-year maturity period and an annual coupon rate of 4.224%.
The redemption of the Eurobond issue and coupon payments were executed in full and in accordance with the terms of the prospectus.
Irish Stock Exchange cancelled listing of Eurobonds Series 9 with effect from 21st November 2018.
KuibyshevAzot Production Site Visited by Vnesheconombank’s Development Projects Team
Vnesheconombank’s First Deputy Chairman and Member of the Board Nikolay Tsekhomskiy has met with KuibyshevAzot’s management at the production site in Tolyatti, Samara Region. KuibyshevAzot is a leader in the Russian chemical industry.
«KuibyshevAzot’s project to build and operate a production facility with an annual capacity of 140,000 tonnes of
The memorandum of intent to involve the Project Financing Factory in carrying out the project was signed by KuibyshevAzot and Vnesheconombank at SPIEF 2018.
According to KuibyshevAzot CEO Alexander Gerasimenko, the sulphuric acid and refined oleum project is aimed at providing feedstock, expanding the existing manufacturing capability and maintaining competitiveness for Russia’s only
Nikolay Tsekhomskiy and Vnesheconombank’s Deputy Chairman Yuriy Korsun were shown the company’s production processes and products and discussed prospects for future cooperation.
KuibyshevAzot operates in two core areas: 1) caprolactam and derived products (polyamide 6, durable technical and textile fibres, cord fabrics, industrial plastics); 2) ammonia and nitrogen fertilisers. The Company also has a joint venture producing industrial gases such as nitrogen, oxygen and argon.
Igor Shuvalov Takes Part in Plenary Session of Small Business – National Project! Forum
In his speech, Igor Shuvalov told the forum participants about the involvement of Vnesheconombank and other development institutions in implementing the development agenda outlined in the May presidential decree.
Vnesheconombank’s Chairman said: «We are currently creating a uniform platform to demonstrate common tools of development institutions. We are concentrating our efforts on ensuring that all measures of administrative and financial support will be consolidated by March. This will be an
An important objective at this stage is to develop a modern urban economy. «A comfortable urban environment is dependent primarily on micro and small businesses. The government and a municipality can invest in the infrastructure needed by a town. But the comfortable urban environment proper depends on small businesses. In cooperation with Russian Small and Medium Business Corporation, SME Bank and other participants (Sberbank, VTB) we are currently considering what we can give to those involved in Russia’s urban infrastructure modernisation programme. This is what will help Russian towns to grow faster, ensure new quality of life through the growth of a local economy. This is high on our list of priorities," Igor Shuvalov emphasised.