VEB.RF and Partner Banks to Provide Financing for Kingisepp Ammonia and Carbamide Facility Construction

25 december 2020 года
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The Investment Committee of VEB.RF’s Supervisory Board has given consent to VEB.RF’s involvement in financing the project to build and operate a Kingisepp-based ammonia and carbamide production facility.

The project is carried out by EuroChem Northwest-2, a special purpose entity of the Project Financing Factory. The production facility with an annual capacity of 1.1 million tonnes of ammonia and 1.4 million tonnes of carbamide scheduled to begin operation in 2023. This is the second phase of the large-scale industrial project. The first phase involved putting into operation an ammonia production facility with a capacity of 1 million tonnes a year.

The project will make a substantial contribution to the achievement of several national goals. Among other things, the project is to encourage capital investment, increase Russian non-energy exports by 0.6 billion US dollars a year and generate annual tax revenues of up to 3 billion roubles. At the peak of construction, about 8,000 people will be working at the site. The project will create 354 high-technology, competitively paid jobs.

Nikolay Tsekhomsky, First Deputy Chairman and Member of the Board, VEB.RF:

“EuroChem Northwest-2 is this year’s largest project under the Project Financing Factory programme of VEB.RF. Our partners are four major commercial banks. The financial institutions will provide a syndicated loan totalling 99 billion roubles, plus about 124 billion roubles, exclusive of VAT, coming from VEB.RF as an optional tranche to cover the risk that the project may cost more than budgeted. With VEB.RF’s support, Kingisepp will have a new industrial cluster: we have already provided financing for the largest gas-to-chemicals project in Russia (the Ust-Luga ethane-containing gas processing facility). We recognise the importance of the projects involving integrated spatial development. I mean the construction of production facilities is accompanied by the construction of houses and community infrastructure.”

Vladimir Rashevsky, CEO and Chairman of the Management Board, MCC EuroChem:

“Last year EuroChem was successful in putting into operation one of the world’s most efficient ammonia production facilities, EuroChem Northwest-1. Now we are pleased to announce the start of a new project. This is part of our large-scale investment strategy to build new industrial facilities in Russia using global best available techniques. EuroChem investment plans contribute to the growth of non-resource exports, create thousands of new jobs in Russian regions and substantially increase local and regional tax revenues. We are grateful to VEB.RF and its Project Financing Factory for assistance with the project. In addition, this project is one of the first in Russia to be covered by an investment protection and promotion agreement. Our project is an excellent example of how to use such mechanisms to encourage investment in the Russian economy.”

VEB.RF-supported petrochemical projects (completed and ongoing) total 5.5 trillion roubles, with VEB.RF’s commitment of 1 trillion roubles. VEB.RF provided financing for the creation of a Tobolsk-based advanced hydrocarbon processing facility, one of the largest in the world; the VEB.RF Group is involved in large-scale projects at Ust-Luga (Russia’s largest ethane-containing gas processing facility), in the Amur Region (Amur Gas Processing Plant), in the Tula Region (Shchekinoazot) and at Nakhodka (methanol production).


VEB.RF is a government-owned development corporation. In partnership with commercial banks and investors, VEB.RF is involved in national projects, including in the area of high-technology production, non-resource exports, infrastructure modernisation and urban agglomerations. The Group has capital of 597.6 billion roubles and liabilities of 2,802.2 billion roubles (as at 30 September 2020).

VEB.RF was mandated by the Russian Government to coordinate development institutions: Russian Export Center, EXIAR, EXIMBANK OF RUSSIA, RUSNANO, the Skolkovo Foundation, the Industrial Development Fund, the Fund for Infrastructure and Educational Programs, the Foundation for Assistance to Small Innovative Enterprises, DOM.RF and RSMB Corporation.

MCC EuroChem operates the Russian assets of EuroChem Group AG, a leading global producer of nitrogen, phosphate and potash fertilisers. Its activities include mining as well as fertiliser production, logistics and distribution. The Company is in the process of completing strategic investment projects at the Usolskiy potash mine, Perm Territory, and EuroChem VolgaKaliy, Volgograd Region. The Company employs over 26,000 people worldwide.

EuroChem, SUEK and Siberian Generating Company are controlled by Russian industrialist Andrey Melnichenko. According to the Expert investment ranking, Andrey Melnichenko is the largest private investor in the Russian non-resource sector. He has invested about 21 billion US dollars in Russian industrial production over the past 15 years.

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Greater Tumen Initiative Declaration Includes VEB.RF Projects

17 december 2020 года
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VEB.RF’s efforts in support of co-financing for Russian projects were given consideration in the Seoul Declaration adopted by the 20th meeting of the Greater Tumen Initiative (GTI) Consultative Commission on 16 December. The projects proposed for co-financing include expanding the port of Zarubino, building 15 LNG carriers under the Arctic LNG 2 project and promoting ecotourism in Land of the Leopard National Park, Primorie Territory. The members of the North-East Asia Export-Import Banks Association (Export-Import Bank of China, Export-Import Bank of Korea, Development Bank of Mongolia) were invited to join the initiative.

Russia will take over the GTI presidency next year, with VEB.RF holding the presidency of the NEA EXIM Banks Association. VEB.RF intends during its presidency to continue collaborating on projects and fostering new initiatives consistent with the sustainability, post-crisis recovery and green finance priorities declared by Russia.


The Greater Tumen Initiative (GTI) is a UNDP-supported mechanism of intergovernmental cooperation in North-East Asia among four countries: China, the Republic of Korea, Mongolia and the Russian Federation. The GTI promotes multilateral cooperation in focus areas such as transport, energy, investment, tourism and environmental protection. The GTI Secretariat is based in Beijing, China.

The GTI uses several special mechanisms to achieve its goals, including the North-East Asia Export-Import Banks Association (NEA EXIM Banks Association). The Association works on investment projects co-financed by the member countries in priority areas.

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