State Development Corporation VEB.RF sees good prospects for building a mutually beneficial partnership with the Colombian business community, VEB.RF’s Deputy Chairman Daniil Algulyan said in an interview with Russian News Agency TASS on Friday following a visit of VEB.RF’s Chairman to Colombia.
“It was a very important visit. We met with our potential Colombian partners,” said Daniil Algulyan.
According to Daniil Algulyan, VEB.RF sees good prospects for joint projects to develop infrastructure, transport and industry.
Igor Shuvalov: BRICS Inter-Bank Cooperation to Focus on Infrastructure Investment in 2020
On the sidelines of the BRICS Summit in Brazil, VEB.RF Chairman Igor Shuvalov described major areas of cooperation among the development banks of the five economies in 2020. With Russia’s presidency of BRICS, VEB.RF is to be in charge of the association’s Inter-Bank Cooperation Mechanism for one year.
“Top of our agenda is attracting private investment in infrastructure. I mean joint efforts to bolster up public-private partnerships. There is extensive experience of using this mechanism globally. Public-private partnerships should be involved in creating the country’s main infrastructure. It was previously part of VEB.RF’s internal agenda. We are now submitting this issue to BRICS,” Igor Shuvalov said.
A special area of cooperation is a modern urban economy. “Developing an urban economy has a direct impact on quality of life. VEB.RF systematically works to build up competencies in this area. For example, we fully share an understanding of this issue with Brazil’s BNDES. We have their active support for this,” he added.
Additionally, Igor Shuvalov announced plans to continue to work on widening the use of national currencies for international payments. According to Shuvalov, the use of the Russian rouble is a key element in the country’s financial and economic sovereignty. Shuvalov said: “It is necessary for us to maintain our currencies and trade capabilities. We are working to come up with a technological solution for this problem. We need to demonstrate several deals with major players. During our presidency, we will attempt to make as much progress towards this goal as we can.”
The important areas of cooperation also include integrating the national payment systems and digital platforms, along with maintaining the principles of multilateral regulation for international trade and investment relations.
VEB.RF Discusses Investment Cooperation Prospects and Buenos Aires’s Urban Environment Transformation Experience with Argentina
VEB.RF’s delegation headed by Chairman Igor Shuvalov visited Argentina. During the visit, the delegation met with energy companies, YPF and Pampa Energia, and Corporacion America, a group specialising in construction and airport management.
As a guest of honour, Igor Shuvalov visited one of the oldest financial institutions in Latin America, the Buenos Aires Stock Exchange. VEB.RF’s Chairman highlighted the role of business dialogue in strengthening relations between Russia and Argentina and in establishing closer contact between EurAsEC and MERCOSUR. The Argentinian side presented promising projects for joint investment. VEB.RF’s delegation presented Russian export support instruments and the Project Financing Factory’s programme.
VEB.RF’s Chairman also had a meeting with Buenos Aires Mayor Horacio Larreta. During the meeting, the Mayor presented recent developments in the Argentinian capital’s economy, transport, safety and municipal waste management. Igor Shuvalov told him about Russia’s experience in urban transformation and VEB.RF’s involvement in the development of a modern urban economy.
VEB.RF and BRICS Development Banks to Form Common Approaches to Financing for Infrastructure Projects
State Development Corporation VEB.RF signed a Memorandum on Mobilization of Private Investment in Infrastructure with the BRICS Inter-Bank Cooperation Mechanism.
The BRICS Inter-Bank Cooperation Mechanism will create a working group which will study business cases, financing formats, project selection models and legal innovation success stories which contribute to mobilization of private investment in infrastructure.
The Memorandum will establish a new ICM working group and promote the sharing of best infrastructure PPP practices between key BRICS development institutions.
VEB.RF Chairman Igor Shuvalov said “Currently, we see great interest in PPP projects, primarily in infrastructure projects. It is the global trend, which we are striving to implement to ensure sustainable economic growth. The development banks play a special role. Many banks aggregate PPP competencies. We plan to follow this way in Russia by creating an integrated infrastructure development centre. VEB.RF has extensive experience in mobilization of private investment in major transport infrastructure projects; our state corporation’s portfolio features dozens of sea, land and air infrastructure assets. Under the supervision of the Government and the President’s Executive Office, VEB.RF plays a role in promotion of PPP legal instruments to encourage and mobilize investment.”
As a reminder, VEB.RF will hold the presidency of the BRICS Inter-Bank Cooperation Mechanism in 2020. The BRICS Inter-Bank Cooperation Mechanism members are VEB.RF, BNDES, Eximbank of India, CDB, and DBSA. The BRICS ICM was established in 2010 to promote and strengthen economic and investment cooperation between BRICS countries. Currently, the BRICS ICM has five working groups.
VEB.RF and VTB to Finance Coal Transhipment Facility Construction at Port of Vanino
The project will be carried out under the Project Financing Factory programme.
State Development Corporation VEB.RF, VTB and VaninoTransUgol have signed a loan agreement to finance the project to build a high technology transhipment facility at the seaport of Vanino in the Khabarovsk Territory.
Phase 1 of the transhipment facility will have a capacity of 12 million tonnes of coal per annum. The facility’s commissioning and start-up are planned in 2020. The project will create more than 600 new jobs. Overall potential capacity of the facility is up to 24 million tonnes of coal per annum.
The partner banks will provide 34 billion roubles to the project using the Project Financing Factory’s programme. Under the syndicated loan, VEB.RF will provide financing to cover more than one third of the project’s Phase 1 expenses.
VEB.RF’s First Deputy Chairman and Member of the Board Nikolay Tsekhomsky said: “Investment into state-of-the-art port infrastructure is one of the key priorities of VEB.RF. We would like to thank our esteemed partners and are confident that our joint efforts will have not only positive impact on the Far Eastern economy but also will open more opportunities for Russian exports to the Asia-Pacific Region.”
VTB’s Head of Client Coverage and Senior Vice President Dmitry Snesar said: “Financing for the project to build the high technology coal transhipment facility at the seaport of Vanino is the first port infrastructure financing deal between VTB and VEB.RF under the Project Financing Factory. VTB has extensive experience in financing major infrastructure projects. The construction of VaninoTransUgol’s terminal means new infrastructure to develop further Russian coal export and contribute to the economic development of the Far East.”
VaninoTransUgol’s CEO Yuri Tyamushkin said: “Construction of the terminal’s Phase 1 is at an advance stage. VaninoTransUgol is not only developing the Far Eastern economy and infrastructure but is also actively contributing to the regional infrastructure, including corporate housing, educational establishments support, building a talent pool and establishing high living standards in the Far East.”