Vladimir Putin has met with Igor Shuvalov, Chairman of State Development Corporation “VEB.RF”. They discussed the bank’s long-range projects and ways of their implementation.
Putin: Igor Ivanovich, I know that you wanted to start our conversation today by discussing the bank’s support for high-technology exports, one of our focus areas at present. But I suggest that after that we talk about a wider range of issues on the agenda of VEB, as our main development institution.
Shuvalov: As you instructed us, VEB joined work on all national projects. We are now involved in all the operations of the Russian Government and are taking an active part in almost all the activities of the Government.
Our special task is to look into any projects that generate new production, goods and services by considering the opportunities for export. Your 7 May decree set a really ambitious goal of increasing exports. We understand that this is our common task.
Before providing a loan or assistance in any other form, all development institutions whose agendas currently include the issue of development are studying whether such services can be in demand in foreign markets or they are created solely for Russian service recipients.
Jointly with Russian Export Center, a wholly owned subsidiary of VEB, the Government has already prepared road maps to carry out the tasks assigned by the May decree. With all doubts, and experts always like to voice doubts, as to whether such ambitious goals are achievable, the goals are attainable.
We must work. We know what to do. Under the direction of the Government, we will be doing this work and reporting to you on the results.
I must tell you that the VEB Supervisory Board has already approved several transactions on this agenda. These include Shchekinoazot, KuibyshevAzot, Udokan copper deposit and Amur Gas Processing Plant.
A major concern for us, a special project, is support for the Zvezda shipyard in Bolshoy Kamen in the Far East.
Putin: What are your activities there?
Shuvalov: We order vessels. Since VEB has leasing tools, we cooperate with Sovcomflot, Rosneft and NOVATEK and order vessels that they need and that they will use.
First, these vessels help us to build the most modern production facilities and ensure import substitution. On the other hand, it will be an export service, including using the tankers to transport our energy and related products. This is an export service.
Putin: I see. It is very good that the bank is involved in this work.
Shuvalov: Vladimir Vladimirovich, we will carry on with it.
Putin: What issues do you regard as the most important for discussion and for today’s activities of the bank?
Shuvalov: Vladimir Vladimirovich, as I have on several occasions reported to you and received your consent, VEB is now involved in the development of the urban economy.
This is a very important issue; and we view it as the most important in the context of you saying in the Address to the Federal Assembly, and then in the decree, that in this cycle of government, during these years, there must be a qualitative change in the life of ordinary people.
As over a hundred million people in this country are urban dwellers, we have made thorough preparations for the regional forum in Sochi, presenting our agenda and launching more than one project in municipalities.
We are now starting these projects in forty cities, bearing in mind that these will be a hundred major cities, except Moscow and Saint Petersburg where the smallest support is needed. If necessary, we are also ready to participate in supporting projects in the two cities, but our main focus is not on the capitals.
Afterwards we will offer partnership to the municipalities and the regional teams and municipal authorities that want to carry out such projects with our support.
What are the projects? This is municipal solid waste processing, this is clean water, this is modern urban public transport, this is support, for example, for old people’s homes, they are called differently now, or support for organising leisure activities and housing facilities for the elderly where it is possible to sell such services. They, of course, are state-financed establishments, but market-based services are already in demand in big cities.
We are looking to create children’s summer recreation infrastructure in collaboration with municipal and regional authorities. I mean, this is a whole range of activities that allow a city to be built anew or transformed.
This is the construction of up-to-date neighbourhoods, which is done by DOM.RF; this is support for export services to attract foreign tourists, which we do through REC [Russian Export Center].
The city is becoming more attractive. This, of course, is a purely economic dimension: a foreign tourist arrived, spent some or no money.
This is RSMB Corporation. No comfort or modern economy in the city is possible without support for small and medium-sized businesses.
We believe that we, as a coordinator of development institutions, must provide substantial funding to help DOM.RF, RSMB Corporation and REC to reach their goals.
Vladimir Vladimirovich, we are set to work hard, we will concentrate capital where interregional large companies are formed. We know that it is often convenient to have a regional subsidiary that deals with vehicle maintenance or environmental issues.
Putin: Not always economically feasible.
Shuvalov: Yes, but it makes sense in this interregional context, and our partners here are Russian Railways, ROSSETI and Rostelecom. We are building good partner relationships with federal companies.
Putin: Very good.
VEB.RF issued short-term bonds in additional placements to companies and corporations on 27 and 29 March 2019.
The Bank raised 0.7 billion roubles, including 0.4 billion roubles from bonds with a maturity of 14 days and a coupon of 7.60% p.a. and 0.3 billion roubles from bonds with a maturity of 28 days and a coupon of 7.59% p.a.
The par value of one bond is 1,000 roubles. The bonds were sold at 100% of their par value. The coupon is payable at maturity.
The arrangers of the bond issue are Gazprombank and Svyaz-Bank.
The bonds are on the Moscow Exchange’s Quotation List Level 1. The depository is National Settlement Depository.