Igor Shuvalov, Chairman, VEB.RF; Nikolay Podguzov, Chairman of the Management Board, Eurasian Development Bank (EDB); Andrey Zhishkevich, Chairman of the Management Board, Development Bank of the Republic of Belarus (DBRB); and Abay Sarkulov, Chairman of the Management Board, Development Bank of Kazakhstan (DBK) signed a memorandum of cooperation among the development banks of the Eurasian Economic Union (EAEU). The document is intended to stimulate the development banks’ investment, thus strengthening integration processes within the EAEU.
Commenting on the signed document, Igor Shuvalov said: “The new alliance will let us take a fresh look at cooperation between development institutions and commercial banks. We intend to seek funding for major projects that will bring not only profits to project initiators and investors, but also a new quality of life to both businesses and people in our countries.”
“The signed memorandum is not only a continuation of successful cooperation with each party, but also a new stage of relationships between the key financial institutions of our countries, aiming to contribute to the development and integration of the EAEU countries,” said Nikolay Podguzov, Chairman of the Management Board, Eurasian Development Bank.
The document was signed during the session on achieving a new quality of life through the cross-cutting integration projects, which was the main discussion during the First Eurasian Congress. The session was moderated by Igor Shuvalov. It started with the opening remarks by Russian Prime Minister Mikhail Mishustin, who stressed the importance of the digital transformation in the Eurasian space. “We need to quickly switch our economies to a new technological level, enabling all sectors to go digital,” he said. “The four freedoms of the Eurasian Economic Union (the flow of goods, services, capital and labour) should be supplemented with a fifth freedom, the flow of information.”
Igor Shuvalov thanked the prime minister for the remarks and told the participants that the Customs Union, which became the basis of the EAEU, had reached the age of ten years in 2020. “All surviving exemptions from the EAEU single market should be removed by 2025,” he said. “The markets will be fully open even in sensitive areas such as finance, oil, gas and energy.”
VEB.RF carries out integration projects in the EAEU member countries with a commitment in the amount of roubles equivalent to almost 70 billion. The projects include the export of Russian industrial products, such as rail transport supplied to Kazakhstan, underground carriages, cranes, railway equipment, metal products and chemical products supplied to Belarus, and financing for the construction of the Belarusian nuclear power plant.
During the First Eurasian Congress in Moscow, Baiterek Holding and State Development Corporation VEB.RF signed an investment cooperation agreement today. The document was signed by the institutions’ chief executives Aidar Arifkhanov and Igor Shuvalov.
According to Aidar Arifkhanov, Baiterek is a reliable partner for investors in Kazakhstan’s economy, who can succeed only if there is a favourable, transparent market environment. Therefore, Baiterek gives a strong focus to mutually beneficial relations with international financial institutions, banks, investment funds and international companies.
“We are currently successful in promoting syndicated lending in Kazakhstan. This is where lending to projects involves several lenders, with each of them having a specific commitment and separate obligations, and with decisions approved by a majority vote or by all lenders. VEB.RF is known to have extensive experience in this area. Our Russian partners share their experience in arranging syndicated loans, the particularities of the Project Financing Factory mechanism. The signed document defines comprehensive and efficient measures to fulfil the potential of financial and economic cooperation, covering almost all areas of our activities,” Aidar Arifkhanov emphasised.
Igor Shuvalov said that cooperation with Baiterek would bring added impetus to the interstate dialogue between Russia and Kazakhstan.
“We are ready to negotiate participation in investment projects, including support for industrial exports, PPP projects to build infrastructure facilities, exchange best practices and experience in venture capital financing, cooperate in trade and export financing, contribute to traineeships to transfer and gain each other’s best practices,” he said.
To date, Kazakhstan companies have received through VEB.RF’s special leasing platform over 5,200 units of railway equipment worth more than 11.3 billion roubles as well as other equipment worth 0.75 billion roubles. There are another three projects in the pipeline: rehabilitation of thermal power and cogeneration stations, supply of goods wagons. VEB.RF’s potential commitment is about 20 billion roubles.
In addition, during the First Eurasian Congress today, Baiterek’s subsidiary Development Bank of Kazakhstan (DBK) signed two strategically important documents: a loan agreement with the Eurasian Development Bank (EDB) for a credit line of 5.7 billion roubles for the DBK, and a memorandum of cooperation with VEB.RF, the EDB and the Development Bank of the Republic of Belarus (DBRB).
“I would like to note that the document signed with the EDB will make it possible to start cooperation in a new area, namely transactions in Russian roubles to finance projects in the high-priority lending areas of the Development Bank of Kazakhstan. As for our cooperation with the DBK and VEB.RF, it didn’t begin today, and we are actively and effectively working together within the SCO IBC and are open to new opportunities for cooperation with the Development Bank of the Republic of Belarus under the signed document, which will allow the parties to jointly consider financing investment projects implemented where the parties have a presence and contributing towards the integration among the EAEU countries,” said Abay Sarkulov, Chairman of the Management Board, Development Bank of Kazakhstan.
As a reminder, the First Eurasian Congress is held by the Eurasian Development Bank and hosted by World Trade Center Moscow. The congress aims to find and discuss practical solutions for Eurasian economic integration. The congress is to include several panel discussions about various aspects of Eurasian economic integration. “Cross-cutting” integration projects were the main topic of the joint section of the EDB and VEB.RF. The heads of major companies and national development banks took part in the discussion.