- The loans and guarantees given by VEB.RF in three quarters of 2021 have totalled about 535 billion roubles and 176.3 billion roubles respectively;
- VEB.RF’s primary investment focus was on industry, infrastructure, exports and SMEs.
VEB.RF lent about 535 billion roubles in the first nine months of 2021, which is 2.5 times more than in 2020 (215.1 billion roubles).
The total amount of financing provided by VEB.RF in nine months of 2021 for industrial and infrastructure projects including urban economy was 475.3 billion roubles and more than 24 billion roubles respectively. More than 26 billion roubles was allocated to finance Russia’s high-technology exports. Specifically, VEB.RF launched the financing of a whole range of transactions for the supply of Russian-made equipment to Uzbekistan and Kazakhstan.
Under the new low-interest lending programme to provide businesses with 3% loans aimed at helping companies to retain their employees and recover businesses, VEB.RF issued surety bonds totalling 104.6 billion roubles to commercial banks.
Nikolay Tsekhomsky, First Deputy Chairman and Member of the Management Board, VEB.RF:
“Since the beginning of 2021, VEB.RF has financed 28 new projects including the largest industrial facilities, such as the Kingisepp-based ammonia and carbamide production facility, the steel mill construction in Vyksa, liquefied natural gas production by Arctic LNG 2, the development project for the Korbalikhinskoye polymetal deposit in the Altai Territory, and infrastructure projects including the construction of airport terminals in Novy Urengoy and Novosibirsk, and the Ufa East Exit. VEB.RF is supporting renovation of the tram network in Taganrog, with first new trams already in operation. The construction of a tram depo has started for the Verkhniaya Pyshma-Yekaterinburg route.”
VEB.RF is focused on the socio-economic impact of financed projects. A very significant project is an ethane-containing gas processing plant in Ust-Luga. The project will be the largest gas-processing production facility in Russia bringing significant impetus to the development of the Leningrad Region and the neighbouring municipalities. With the participation of VEB.RF, a new comfortable housing estate will be built for the plant employees in close vicinity to the plant. The first tranche has already been allocated for the pre-investment phase of the project.”
According to the new strategy, VEB.RF Group’s five key focus areas include:
- Major industrial projects. Above all, this concerns export-oriented projects improving the competitiveness and expanding the use of breakthrough technology;
- Infrastructure and urban economy;
- Small and medium-sized businesses;
- Information technology and innovation.
VEB.RF Chief Legal Officer Igor Krasnov: Modern Russian Arbitration Centres Are Best Dispute Resolution Platforms
The conference focused on the five year reform of the Russian arbitration institute and moderated by Head of the Russian Union of Industrialists and Entrepreneurs Aleksander Shokhin was held as part of the Russian Business Week. The participants discussed the current state of Russian arbitration system and future measures aimed at its development and improvement of the respective legislation and enforcement practices.
VEB.RF’s Chief Legal Officer Igor Krasnov noted increased legal risks related to dispute resolution involving major Russian businesses in foreign jurisdictions and increased protectionism demonstrated by legal systems of certain states.
An arbitration court represents a single judiciary, and a claimant having an arbitration award may submit it to a competent jurisdiction for approval and obtaining a writ of execution. In addition, an arbitration proceeding provides for the selection of an arbitrator in accordance with set procedures. Therefore, dispute resolution by arbitration is much more effective, expeditious and confidential.
Igor Krasnov offered to use Russian arbitration centres as modern and independent forums to resolve complicated legal and economic disputes.
“We believe that disputes between Russian counterparties should be settled by negotiations and, where necessary, through mediation. If a dispute cannot be resolved amicably, then a modern Russian arbitration centre could become the best platform for dispute settlement and finding a compromise with partners and clients,” Igor Krasnov said.
He also noted that VEB.RF had set a legal framework governing interaction between development institutions and Russian arbitration courts, and determined the priority of arbitration in VEB.RF’s standard loan and collateral documentation.
“VEB.RF’s clients are advised to use arbitral clauses allowing them to have obvious advantages of arbitration proceeding: expeditiousness, thoroughness, democratic nature, progressiveness and high arbitration standards.