Online Conference "From Pandemic to Recovery" | September 9, 2020; 14:00 – 16:45 (Moscow time)
The ongoing pandemic took a huge toll on communities and businesses around the world. On September 9th
national development banks of Russia, France, South Africa, Saudi Arabia and other countries as well as UN officials and prominent economists will discuss the role of development institutions in post-pandemic recovery.
The situation in the sector of small and medium enterprises, infrastructural developments and exchange of experience in tackling the crisis will be at the forefront of the agenda. The panel includes UN Secretary-General António Guterres, Secretary-General of the OECD Ángel Gurría, Chairman of VEB.RF Igor Shuvalov, Chief Executive Officer of the Agence Française de Développement Rémi Rioux and many other distinguished speakers.
VEB.RF’s Chairman Shares the Fight against the Pandemic Insights and Priorities with Foreign Colleagues
During the WHO’s Pan-European Commission on Health and Sustainable Development’s conference Rethinking Policies in the Light of the Pandemic, VEB.RF’s Chairman Igor Shuvalov presented the policy of the Russian Federation in support of the healthcare system during the pandemic, as well as the role that VEB.RF has played in it and plans to continue to play. This was the first meeting of the new body created under the auspices of WHO and under the chairmanship of former Italian Prime Minister Mario Monti.
The main task of the inaugural meeting was to introduce the members to each other and identify priorities that should lead to WHO’s recommendations for transforming healthcare systems to meet the challenges of the pandemic. The Commission will focus mainly on maintaining the sustainability of healthcare systems in the face of increased workload, healthcare digitalisation, intergenerational solidarity in healthcare financing, as well as the connection between this industry and the economic development.
In his statement, Igor Shuvalov reflected the national development priorities of the Russian Federation and introduced the audience to the tasks that VEB.RF is working on under the leadership of the Russian Government.
The Commission also included former President of Finland Tarja Halonen, former President of Estonia Toomas Hendrik Ilves, Head of Chatham House and former Head of the UK Treasury Jim O'Neill, representatives of expert and academic communities. The next meeting of the Commission is scheduled for the end of October this year.
VEB.RF Participates in Financing the Largest Gas Processing Facility in Ust-Luga
VEB.RF and RusKhimAlliance LLC signed a facility agreement to finance the initial phase of the project to build Russia's largest gas processing facility in the Leningrad Region near the sea port of Ust-Luga, including a gas processing plant with a capacity of 45 bcm per year and a LNG plant with a capacity of 13 mtpa.
VEB.RF loans totalling up to 55 billion roubles will cover design documentation, advance payments under license agreements and contract agreements, including long lead items, and other project related expenses.
The financing will be provided in tranches in line with the project's schedule.
"Ust-Luga’s project will have a significant impact on the socio-economic development of Russia, it will give a boost to long-term industrial economic growth in the North-Western Federal District, and it will make Russian products more competitive in the international market. The processing facility in Ust-Luga is an example of a project with a multiplying effect for the economy of the whole country," VEB.RF’s First Deputy Chairman and Member of the Management Board Nikolai Tsekhomsky said.
“Cooperation between RusKimAlliance and VEB.RF aims to create the most powerful Russian gas processing plant, which will also become the leading producer of liquefied natural gas in the North-Western region of Europe. Ust-Luga’s gas processing facility project has already signed long-term gas supply agreements, which guarantee, in particular, the annual supply of 45 billion cubic meters of feed gas to the facility and the sale of commercial gas in the amount of about 18 billion cubic meters per year. At the current stage, a number of engineering surveys have already been carried out and the main technical solutions for the project have been developed. Comprehensive measures are being implemented to systematically integrate the new high-tech plant into the socio-economic environment of the Russian North-West. We will be a partner for the Leningrad Region and a reliable employer for several thousand residents of the region,” RusKhimAlliance’s CEO Kirill Seleznev said.
VEB.RF takes part in financing the Facility for Processing Ethane-containing Gas in Ust-Luga. The project encompasses the construction of integrated gas processing and gas chemical facilities for deep processing of multicomponent natural gas.
Konstantin Vyshkovskiy is VEB.RF's New Debt Capital Markets Executive
As of this Monday, Konstantin Vyshkovskiy (born 17 November 1973) joined VEB.RF as a Senior Banker. He will oversee VEB.RF’s debt capital markets activities as part of the top management team.
Previously, he headed the Department of Sovereign Debt and National Financial Assets of the Ministry of Finance of the Russian Federation.
VEB.RF, together with Russian commercial banks, is ready to consider its participation in financing the construction of the Amur Gas Chemical Complex for the production of polymers with a capacity of up to 2.7 mtpa. The project was discussed at a meeting between Russian Prime Minister Mikhail Mishustin and the members of the Government Commission on Social and Economic Development of the Far East in Blagoveshchensk. The event was attended by VEB.RF’s Chairman Igor Shuvalov.
The Amur Gas Chemical Complex project was initiated by SIBUR. The project is aimed at expanding the export of non-primary non-energy goods, and contributes to the development of the advanced development zone of the Free Port of Vladivostok.
“SIBUR is a strategic partner of VEB.RF. The construction of the largest petrochemical facility ZapSibNeftekhim in Tobolsk was financed with our support. This project made the Tyumen Region a leader among the constituent entities of the Russian Federation in terms of the industrial production index in January-May 2020. ZapSibNeftekhim's products play an important role in substituting polymer imports and will allow creating Russian equivalents of foreign products,” Igor Shuvalov noted.
Igor Shuvalov also visited the construction site of the Amur Gas Processing Plant. At the end of 2019, VEB.RF signed an agreement to finance the project with a syndicate of Russian, European and Chinese lenders, totalling 11.4 billion euros. VEB.RF’s commitment played a significant role in financing the transaction and attracted offers from potential participants: a total of 21 banks are involved in financing the project. The approved VEB.RF's commitment to the project amounts to 500 million euros. The project is implemented by Gazprom Pererabotka Blagoveshchensk LLC (part of the Gazprom Group) on the territory of the advanced development zone of the Free Port of Vladivostok, the Amur Region. The plant is designed by NIPIGAS, a leading Russian EPC service centre (part of SIBUR). Engineering has begun in 2015. NIPIGAS provides a full range of services for the project: performs detailed design, supplies equipment and materials, performs construction and installation works, and ensures mechanical availability and handover of the plant to Gazprom Pererabotka Blagoveshchensk. It is expected that the Amur Gas Processing Plant will become one of the largest natural gas processing plants in the world. It will play a significant role in supplying natural gas to China through the Power of Siberia pipeline. The project will create up to 3 thousand new jobs.
During his visit to Blagoveshchensk, Igor Shuvalov saw the key infrastructure projects of the city, discussed the development plan for the area of the Blagoveshchensk-Heihe road bridge, and got acquainted with the urban development of the urban environment Golden Mile tourism cluster.
Currently, VEB.RF is considering participation in the financing of 20 projects in the Far Eastern Federal District totalling 1.6 trillion roubles; the estimated amount of funding from VEB.RF exceeds 280 billion roubles.
With financial support from VEB.RF, 12 projects are already being implemented in the district with a total cost of 2.5 trillion roubles. The volume of investments of the development institution in projects in the district exceeds 600 billion roubles, of which 41.6 billion is the volume of VEB.RF investments in the Amur Region.
“In the Far Eastern Federal District, VEB.RF is supporting Russia’ major projects to create large-scale state-of-the-art production facilities. It is important for these facilities to be built in a comfortable urban environment, and every citizen should feel a change in the quality of life as a result of our joint work,” Igor Shuvalov pointed out in Blagoveshchensk.
VEB.RF pays great attention to the development of infrastructure in the regions of Russia, especially in the Far East, where projects related to the development of transport hubs are in high demand. VEB.RF has already lent a helping hand to build and rehabilitate airports in Khabarovsk and Vladivostok. Kamchatka Airport reconstruction project is currently under review and structuring. Currently, a tender is being held for the conclusion of a concession agreement on the reconstruction of Blagoveshchensk International Airport. VEB.RF and the Far East and Arctic Development Fund (VEB.RF Group) are interested in considering the possibility of providing financing to the winning investor. The reconstruction of the airport will improve the quality of passenger service and increase its capacity. Financing the infrastructure, including the modernisation of major airport hubs, including the construction and reconstruction of terminals, is one of the key tasks of the development institution. This includes developing the infrastructure, improving the quality of people’s life, and developing agglomeration and regional ties.
VEB.RF also participates in financing the construction of tankers at the Zvezda shipyard, a gas-to-chemicals methanol facility in Nakhodka (Primorie Territory), mining projects (development of the Udokan deposit), port infrastructure, and urban economy projects.
The Far East and Arctic Development Fund supports 19 ongoing investment projects in the Far East with a total volume of 541.1 billion roubles, of which the FEDF's investments amount to 68.7 billion roubles. In the Amur Region, the first and so far the only Russian soy isolate and dietary fibre plant was built with the support of the FEDF. This year, the plant shipped its first products. The total investment in the project amounted to 5.4 billion roubles, including FEDF’s commitment of 1.7 billion roubles.