VEB published its consolidated financial statements for 2019 as prepared in accordance with IFRS.

27 march 2020 года
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VEB published its consolidated financial statements for 2019 as prepared in accordance with IFRS.  

VEB.RF Group’s key financials for 2019 are as follows:

  • The Group’s assets as at 31 December 2019 amounted to RUB 3,177.4 bn. The decline against the beginning of the year was RUB 184.5 bn (- 5.5%), that was due to the decrease in the loan and leasing portfolios, and assets of disposal groups and non-current assets held for sale. The increase in cash and cash equivalents and investment financial assets positively affected total assets. The increase in liquid assets was carried out in the context of building a necessary liquidity buffer in line with the Group’s conservative approach to risk management.
  • Loans to customers accounted for 35.5% of the Group’s total assets. As compared to the beginning of 2019 the loan portfolio after allowance for expected credit losses decreased by RUB 432.8 bn (-27.7%) and reached 1,128.8 bn. The portfolio decrease after allowance for expected credit losses was mostly due to the disposal of Sviaz-Bank, negative foreign currency revaluation and loan repayments performed at faster pace than new lendings.

  • The amount of loans granted by VEB in 2019 reached RUB 84.5 bn. Investment priority sectors included industry, infrastructure and urban economy, as well as export support.

  • The Project Financing Factory became fully operational, with syndicated lending in partnership with commercial banks being its mechanism, employing government support.

  • In 2019 VEB.RF’s supreme collegial management body approved eight projects, implemented through this mechanism, worth a total of over RUB 731,4 bn. The projects were in such areas as chemical (incl. natural gas to chemicals) and metallurgic industry, ports and roads infrastructure, as well as digital economy. In 2019 financing for six projects of the Project Financing Factory began.

  • The Group’s total liabilities as at 31 December 2019 amounted to RUB 2,749.8 bn, decreasing by RUB 328.0 bn (-10.7%) in 2019. The decline was mostly due to the decrease in the amounts due to banks and issued debt securities, as well as in the amounts due to customers brought about by the disposal of Sviaz-Bank. At the same time, the amounts due to the Russian Government and the Bank of Russia went up by RUB 179.1 bn, or 30.2%, owing to the Federal Treasury’s placement with VEB.RF of a deposit of RUB 200 bn for a term of up to five years at the below-market rate.

  • The net operating income for 2019 totaled RUB 58.2 bn as compared to the net operating loss of RUB 11.0 bn for 2018. In the operating income structure, the net interest income amounted to RUB 25.7 bn, net commission income reached RUB 8.2 bn, non-interest income amounted to RUB 24.3 bn.

  • The Group’s negative financial result for the 2019 came to RUB 52.8 bn, which was, inter alia, stipulated by the reporting rules specifics, when the Group recorded a loss of RUB 46.2 bn at the initial recognition of project financing provided at the below-market rate. Yet, project financing is one of the priorities of VEB.RF as a development institution. The financial result was also negatively affected by the net interest income decrease against the general interest rates drop.

  • The measures undertaken to improve the balance sheet structure and optimize the business model contributed to the reduction of the 2019 loss by 70.0% as compared to the loss of RUB 175.8 bn in 2018.

  • In 2019 the Group’s equity went up by RUB 143.5 bn (+50.5%) to reach RUB 427.6 bn as at 31 December 2019.

  • The range of instruments provided to VEB.RF by the state in 2019, aimed at maintaining the size and structure of VEB.RF’s capital, also included the following:

  • In March and June 2019 VEB.RF received subsidies from the federal budget in the form of an asset contribution of the Russian Federation of RUB 7.7 bn and RUB 7.8 bn, respectively, to compensate for costs related to the fulfillment of obligations arising from foreign borrowings in the capital markets. The whole amount of the subsidies was recognized within authorized capital.

  • In March and December 2019 VEB.RF received subsidies of RUB 9.7 bn and RUB 1.5 bn, respectively, from the federal budget as an asset contribution of the Russian Federation in order to make a contribution to the share capital of JSC Far East and Arctic Development Fund for the implementation of priority investment projects in the Far Eastern Federal District. The whole amount of the subsidies was recognized within additional paid-in capital.

  • It should be also noted that Regulation No. 1611 of the Russian Government “On the Authorized Capital of State Development Corporation “VEB.RF” of 21 December 2018 stipulates that in accordance with Article 18 of the Federal Law and clause 1.1 of Article 78.3 of the Budget Code of the Russian Federation the authorized capital is formed in the amount of the formed part of the authorized capital of VEB.RF and the part of the authorized capital of VEB.RF to be formed through further additional asset contributions of the Russian Federation in the amount of RUB 300 bn.

  • VEB.RF’s capital adequacy ratio (according to RAS) was 13.6% as at 1 January 2020 (11.8% as at 1 January 2019).

  • In 2019, VEB.RF retained the credit ratings at the level of the Russian Federation sovereign rating (S&P: BBB, Fitch: BBB, Moody’s: Baa3). The national rating agency ACRA also maintained the VEB’s credit rating at the highest level of AAA.  


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Economic Partnership Strategy 2025 Prepared with VEB.RF’s Participation to Receive Approval at BRICS Summit in Saint Petersburg in July

27 february 2020 года
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A meeting of the BRICS Contact Group on Economic and Trade Issues in Moscow on 26 February supported VEB.RF’s proposals for the Strategy for BRICS Economic Partnership. It is intended that the proposals will be submitted to the BRICS leaders at the Saint Petersburg summit in July 2020.

Zarina Tsekoeva, Vice-President of Strategy, reported to the meeting on these activities and VEB.RF’s contribution to the implementation of national projects in Russia.

In her report on the principal areas of economic cooperation among the BRICS member countries, Tsekoeva drew attention to the issues related to the Sustainable Development Goals, the principles of responsible investment, the agenda for the presidency of the BRICS Inter-Bank Cooperation Mechanism, and the necessity for the BRICS member countries to take part in formulating the common principles of responsible investment.

The report of the Russian Ministry of Economic Development put particular emphasis on digital transformation and sustainable development, including in respect of remote and rural areas. In addition, representatives of Global Rus Trade reported on the establishment of the BRICS Business Women Alliance; research experts and members of the BRICS Expert Council presented a review of BRICS trade relations, noted the importance of supporting infrastructural projects of the New Development Bank, and emphasised the need to work towards the UN Sustainable Development Goals 2030.

VEB.RF holds the presidency of the BRICS Inter-Bank Cooperation Mechanism in 2020.

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