VEB.RF Starts to Finance Project to Supply Five Main-line Electric Freight Locomotives to Uzbekistan
VEB.RF has provided financing for the project to supply five 3ES5K main-line electric freight locomotives manufactured by Transmashholding, Russia, for O’zbekiston Temir Yo’llari (Uzbekistan Railways).
VEB.RF and the National Bank of the Republic of Uzbekistan for Foreign Economic Activity (NBU) entered into a loan agreement in April 2020 to finance the supply project.
“Uzbekistan is one of VEB.RF’s leading partners in export projects, and the NBU is a reliable partner of VEB.RF. As part of efforts to build up trade and economic cooperation between Russia and Uzbekistan, our financial institutions have signed four loan agreements to date, totalling about 188 million euros. A project is well under way to supply underground carriages for the Tashkent Metro, along with projects to modernise power facilities. VEB.RF now has a whole range of projects in the pipeline to finance the supply of Russian high-tech products to the Republic of Uzbekistan,” VEB.RF’s Deputy Chairman Daniil Algulyan said.
VEB.RF is involved with the International Cooperation and Export national project and provides support for projects to promote Russian high-technology exports.
The NBU is the largest bank in Uzbekistan, accounting for about 24% of the country’s total bank assets. Currently, the bank has capital of 1,380 million US dollars and the same credit rating of BB- from Standard & Poor’s as the sovereign rating of Uzbekistan.
Rostec, ROSATOM and VEB.RF have agreed to build at least 25 energy-from-waste plants for sorted municipal solid waste (MSW). The parties are ready to set up facilities with the increased local content of Russian-made equipment around the most popular tourist destinations in Russia as well as in urban agglomerations having a population of 500,000 or above.
The project will cost an estimated 600 billion roubles, with VEB.RF’s planned commitment of about 200 billion roubles.
The cooperation agreement was signed by Rostec CEO Sergey Chemezov, ROSATOM Director General Alexey Likhachev and VEB.RF Chairman Igor Shuvalov. The project is aimed at introducing global best practices in MSW management and reducing the environmental harm caused by landfill sites.
The project’s operator will be RT-Invest, a subsidiary of Rostec. As specified in the agreement, Rostec is to propose government support measures to launch and implement the project, including mechanisms such as capacity supply contracts in the wholesale electricity market and extended producer responsibility schemes.
“Waste management reform is under way in Russia, aiming to introduce separate collection and achieve zero dumping. The construction of 25 modern energy-from-waste plants will stop more than 80 new landfills from emerging, close down 25 existing dumping sites and save about 60,000 hectares of land. It’s worth noting that the plants will be the final link in the chain of waste management. They will handle unrecyclable fractions,” Rostec CEO Sergey Chemezov said.
ROSATOM will be the project’s technology partner. The government-owned corporation is ready to supply primary equipment, provide a basic engineering package for the plants, ensure the application of foreign best available techniques in energy from waste, conduct pre-commissioning procedures and carry out running maintenance.
“We are committed to dealing with environmental issues responsibly and strive to contribute as much as we can to preserve the planet for future generations. As early as now, ROSATOM is able to manage industrial waste of Hazard Classes I and II. Our engineering division makes equipment not only for Russia’s first energy-from-waste plants but also for similar projects abroad. We’re currently ready to offer the partners our best technological capability and expertise to create a safe, modern MSW management and disposal system that will minimise environmental impacts,” ROSATOM Director General Alexey Likhachev said.
The project will be funded by VEB.RF, which is involved in the pilot project to build energy-from-waste plants for municipal solid waste in the Moscow Region. The project is the flagship in the portfolio of RT-Invest, a subsidiary of Rostec, and is the largest MSW project under the Environmental Protection national project.
“VEB.RF is ready to provide financing for the comprehensive programme to build 25 new plants in Russian regions. This represents a major step forward in building up an integrated waste management system in this country. We are also planning on attracting commercial banks, financial institutions and private investors to the project, including through public-private partnerships and green bonds,” VEB.RF Chairman Igor Shuvalov said.
When completed in full, the project will attract an inflow of an additional 459 billion roubles to Russian industrial production and will make it possible to create a new Russian industry having high export potential: a ready-to-use energy recovery solution will enable Russia to export it to India, Indonesia, South Africa and other countries intending to build energy-from-waste facilities.
The 25 energy-from-waste plants built in the regions will create about 25,000 jobs (approximately 1,000 per project site) during construction and 2,500 jobs during operation.
The Energy from Waste pilot project is implemented by RT-Invest, a subsidiary of Rostec. The project involves building four energy-from-waste plants in the Moscow Region (Voskresensk, Naro-Fominsk, Solnechnogorsk and Bogorodsky municipalities) and one plant in the Republic of Tatarstan. The project is consistent with the principles of circularity: separate collection, sorting, recycling, energy recovery. It is intended that the plants will start to generate a total of 2,320 million kWh of green electricity per year in 2022. Their construction uses Hitachi Zosen Inova technology from a global leader in energy from waste.
VEB.RF Guarantees RUB100bn in Surety Bonds for Zero-Interest Salary Loans
VEB.RF has completed the first phase of support for small and medium-sized enterprises by issuing surety bonds totalling 100 billion roubles to commercial banks that give salary loans with an interest rate of 0%.
The programme to issue surety bonds to commercial banks for zero-interest loans intended for salary payments is aimed not only at micro and small businesses but also at medium-sized enterprises.
VEB.RF is to issue surety bonds to guarantee at least 75% of interest-free salary loans to SMEs.
“VEB.RF acts as a reliable financial partner both for the government and commercial banks, and we have joined forces with them to support small and medium-sized enterprises. We got the transactions completed as quickly as we could. We find it important that the government’s rescue package should become accessible to businesses in the shortest possible time to help them to survive the acute phase,” VEB.RF Chairman Igor Shuvalov said.
The new banks that received VEB.RF surety bonds include Rosbank (0.75 billion roubles) and Raiffeisenbank (3.5 billion roubles).
VEB.RF had previously issued surety bonds to Sberbank, VTB, Promsvyazbank, Otkritie Bank, Alfa-Bank, Ak Bars Bank, Russian Agricultural Bank, SME Bank and Bank Saint Petersburg. In the case of certain banks (VTB, Russian Agricultural Bank and Gazprombank), surety bonds guarantee an increased amount of money and extend to medium-sized enterprises.
VEB.RF issued the surety bonds to the commercial banks under the Russian Government’s rescue scheme to support troubled businesses.
Vladimir Putin Instructs VEB.RF and Government to Work Together to Renew Public Transport
During a meeting discussing the situation in the automotive industry, Vladimir Putin noted VEB.RF’s active involvement in crisis-fighting measures and instructed the government to collaborate with the state corporation in launching a programme to renew public transport.
VEB.RF Chairman Igor Shuvalov reported that the programme was already in place for 12 large cities.
“We made estimates with our colleagues. This year we’ll be able to ensure the purchase of 70 billion roubles’ worth of vehicles. This makes it necessary that VEB-Leasing, our subsidiary, and State Transport Leasing Company, an entity controlled by the Ministry of Transport, should work together. If we join up with each other, we can spend this amount on urban transit equipment,” Igor Shuvalov said.
According to VEB.RF’s Chairman, the proposed programme is designed not only as one of the crisis-fighting measures because it has a direct impact on the quality of life in the cities.
“We worked hard for several months and, together with the government, developed a mechanism to renew urban public transport. The programme has proved effective as we were able to launch it in Tver, for example. It didn’t cost much; we spent 3.2 billion roubles in Tver to produce a huge effect. This is definitely a high-quality public transit service with modern safe transport and notable social effects,” Igor Shuvalov added.
State Development Corporation VEB.RF has closed a deal to acquire a 77.63% shareholding in PFC CSKA Moscow as part of debt conversion into the club’s equity. The deal paid off all of PFC CSKA’s debts to the state corporation, making VEB.RF the principal owner of the club.
The club’s shareholder meeting elected a new board of directors of PFC CSKA. VEB.RF is represented by four directors: Maxim Oreshkin, a member of VEB.RF’s Supervisory Board and an assistant to the Russian president; Igor Krasnov, VEB.RF’s Senior Vice-President, Legal; Alexander Chebotaryov, VEB.RF’s Vice-President, Chairman’s Administrative Office; and Alexander Plutnik, Chairman of VEB.RF’s Urban Economy Committee and CEO of New Urban Projects. The representatives of PFC CSKA on the new board of directors are the club’s President Yevgeni Giner and General Director Roman Babayev as well as Mail.ru Group CEO Boris Dobrodeev.
“Basically, the transfer of 77.63% shares in PFC CSKA to VEB.RF settled the issue of the club’s debt, which tied them down and didn’t let them invest in development. So, this helped out the club in a difficult economic situation. I must stress that the deal will involve no sweeping changes in PFC CSKA’s football management or strategy. Mr Giner will keep running the club, stick to his plans for team development and set himself the same ambitious goals as before but with a very strong and reliable partner. I hope that with support from millions of CSKA fans, we’ll make it to the top,” VEB.RF Chairman Igor Shuvalov said.
“I’s like to thank VEB.RF’s management for their constructive position and support for the club in such a difficult economic situation. The format we chose will enable PFC CSKA to restructure its financial obligations and concentrate on sporting results. We’ll continue work on building a team that will be able to achieve our ambitious goals. I’m sure that with such loyal supporters and such a powerful and reliable partner, the club will regain leadership in Russian football in the near future,” PFC CSKA President Yevgeni Giner said.