VEB.RF Group to Support Russian Exports for Uzbek Oil and Gas Projects
The VEB.RF Group and its Russian partners have entered into several agreements to carry out oil and gas projects in Uzbekistan. The documents were signed in the presence of VEB.RF Chairman Igor Shuvalov and Uzbek Minister of Energy Alisher Sultanov.
VEB.RF, Gazprombank and Uzbekneftegaz agreed on financing for the second phase of the programme to increase hydrocarbon production in Uzbekistan. Gazprombank and VEB.RF are considering the possibility of providing early financing for the project. For instance, it is intended that investments will be used to pay Russian contractors and suppliers. The parties are negotiating a bridge loan totalling 100 million US dollars, with at least 50% to be borrowed by Uzbekneftegaz in Russian rubles. In early November 2020, VEB.RF and Uzbekneftegaz signed a loan agreement for 40 million euros to pay for Russian high-technology products, work and services used to build and modernise the company’s production facilities with a view to scaling up natural gas production.
Additionally, Uztransgaz and VEB.RF agreed on financing for the supply of Russian-made products, such as pipes (including under the Yangiyer-Ohangaron gas pipeline construction project) and special-purpose equipment to meet the company’s business needs.
VEB.RF, EXIAR (part of the VEB.RF Group) and Jizzakh Petroleum agreed to work together on investment projects to increase unconventional oil production and develop Uzbekistan’s infrastructure for petroleum product distribution.
“VEB.RF is involved in discussing Uzbek oil and gas projects with Russian exports of high-tech products and services for a total of over 700 million US dollars. VEB.RF now focuses on several projects in Uzbekistan in different sectors: Almalyk MMC modernisation; soil production using Russian technologies, materials and equipment in the Jizzakh Region; the first transaction in a new format of cooperation between Russia and Belarus to supply haul trucks to Almalyk MMC, a major producer of copper, gold and silver; negotiations with the Tashkent administration are under way over our participation in a city improvement project,” Igor Shuvalov said.
As instructed by the Russian Government, the VEB.RF Group is actively involved with efforts to strengthen economic ties between the two countries. VEB.RF has financed successful projects in Uzbekistan in the last two years, such as the supply of Russian underground carriages for the Tashkent Metro, power engineering equipment, and main-line electric freight locomotives.
REC Board of Directors Reiterates Its Commitment to Comprehensive Support for Exporters
The Board of Directors of Russian Export Center (REC) held a meeting on 14 December. Chaired by VEB.RF Chairman Igor Shuvalov, the meeting approved the REC management report for the nine months of 2020 and the main priorities for 2021. The focus areas will include the One-Stop Shop project to make it easier to support non-resource non-energy exports. The Board of Directors outlined priorities for REC’s activities, namely improving the quality of services, accelerating their provision and enhancing their accessibility.
“2021 will be a critical year for global economic recovery. With lockdowns removed and international trade rebooted, Russian exporters will find new niches and consolidate their position in the traditional markets. It’s important to provide effective support for export activity and make sure the Group’s useful services are scalable; so, we’ll continue to increase operating efficiency to support domestic companies,” REC’s CEO and member of the Board of Directors Veronika Nikishina said.
The mandate received by VEB.RF from the Russian Government to coordinate several development institutions is aimed at streamlining their activities, increasing their contribution towards national projects and improving quality of life. REC, EXIMBANK OF RUSSIA and EXIAR are current members of the VEB.RF Group; the formats necessary to manage and coordinate efforts are already in place. The group is involved in efforts to achieve the national development goals of the Russian Federation by 2030 and contributes its expertise and competencies to national projects, such as International Cooperation and Export, SME Development, and Increasing Workforce Productivity.