V.V. Putin’s Opening Address
Today, we are holding our regular meeting of Vnesheconombank’s Supervisory Board. Our today’s agenda includes a number of new investment projects as well as issues of systemic nature such as for example the creation of effective instruments for implementing socio-economic plans. Here I mean the plans to develop the Northern Caucasus. We set ourselves a number of objectives in the Strategy for the Northern Caucasus, the Northern-Caucasian Federal District. The main one is to secure the development of this Russian region. We have to address the issues of transport, power engineering, we also have to upgrade populated localities but the main thing is to create 400 thousand new jobs for a period of 10 years.
To this end, huge government and private funds worth tens and even hundreds of billions rubles should be invested in the Northern Caucasus. In order to accomplish objectives of such magnitude we have to use advanced management systems in the top-priority economic sectors. Today, we’ll discuss proposals on some key elements.
Here I mean the Northern Caucasus Development Corporation and a company “Resorts of the Northern Caucasus”. Vnesheconombank is to found both these business entities. And in their operation they will rely on the Bank’s financial and expert potential.
The Northern Caucasus Development Corporation is to be responsible for monitoring investment projects - from idea to practical implementation. It is this Corporation, which should be responsible for preparing all required documentation, agreeing it upon with regional, local and federal authorities as well as for helping to obtain credits in financial institutions. Moreover, the Corporation’s most important task is to train local personnel, specialists so that they will be able to work in the modern conditions and raise investments on their own.
The company “Resorts of the Northern Caucasus” is to be established in order to manage a unified tourist complex that is being formed in the region now. Here I mean such resorts as Arkhyz in Karachaevo-Cherkessia, Lagi-Naki in Adygeya, Mamison in North Ossetia, Matlas in Dagestan and Elbrus in Kabardino-Balkaria.
I’d like to highlight two more issues. Firstly, Vnesheconombank is planning to participate in implementing a project aimed at developing Russia supercomputers manufacturing technologies and promoting their export. These technologies will be in great demand in power engineering, aviation, space exploration, nuclear power engineering and in many other economic sectors. And secondly, it’s a project to build a large stock-breeding complex in the Bryansk region.
We are well aware that this year the situation in the agro-industrial complex is quite difficult. Because of the drought, agro-industrial farms in a number of regions suffered heavy losses and are in need of the state’s support .We have already talked about it today. This sort of support is being provided now.
At the same time, we can see that many investors took a decision not to freeze their projects and continue to work for the future and build high-technology, large-scale production facilities, above all, in animal breeding, plant growing and logistics.
And we, of course, should back this approach. And we are going to deal with one of these projects. Here I mean Miratorg Company. A meat cattle-breeding complex for 100 thousand heads is planned to be built. This sort of production facilities have never been built in our country, even, if my memory serves me right, in the Soviet times. This complex would produce up to 48 thousand tons of beef a year.
A total amount of financing is in excess of 24 billion rubles, with Vnesheconombank’s participation share being 18.4 billion rubles.
Let’s get started with our work
On Signing Memorandum on Cooperation between Vnesheconombank, OJSC INTER RAO EUS and OJSC VEB-Leasing
State Corporation’ Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, OJSC INTER RAO EUS and VEB-Leasing signed a Memorandum on Cooperation in implementing projects aimed at constructing power engineering facilities on the basis of Russian-made gas turbine power units.
On behalf of Vnesheconombank the Memorandum was signed by Management Board Member-Vnesheconombank Deputy Chairman Anatoly Ballo, on behalf of OJSC INTER RAO EUS - by its Board Chairman Boris Kovalchuk and on behalf of OJSC VEB-Leasing - by its Director General Vyacheslav Solovjev.
Under the Memorandum, OJSC INTER RAO EUS together with GENERAL ELECTRIC and State Corporation Rostechnologies plan to establish a joint venture, which is to manufacture, assembly, test and market gas turbine power units with a rated capacity of 75 MW. A gas turbine assembly plant is to be located on the territory of the Russian Federation.
In order to promote relations in the field of joint implementation of investment projects in the power engineering, Vnesheconombank is expected to conduct expert examination of projects and, in the case that the Bank’s corporate bodies make positive decisions on the results of expert examination, finance them.
The parties plan that a total amount of projects’ financing will be from 2 to 9 billion euros in the period of 2011-2018.
The Memorandum provides for OJSC VEB-Leasing to participate as a leasing company in implementing joint projects aimed at manufacturing gas turbine power units and package units for power engineering facilities on the basis of gas turbine power units.
The parties described their cooperation in financing the said projects as a high-priority objective ad a top-priority line of cooperation at the present stage.
INTER RAO UES is a dynamically growing power engineering company responsible for controlling a number of generation and distribution power engineering assets in Russia and abroad. The total installed capacity of electric power stations of INTER RAO UES is about 18000 MW. The company is undertaking an active investment activity and is a leading company in Russia in the field of export-import of electricity. It is one of the largest generation company in Russia.
OJSC VEB-Leasing has been operating on the Russian market since 2003 and is among Russia’s largest leasing companies. According to the leasing companies rating prepared by RA Expert for 2009, OJSC VEB-Leasing took first place by the amount of new business and was among three largest Russia’s leasing companies by the amount of leasing portfolio. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ is OJSC VEB-Leasing’s principal shareholder. Fitch Ratings assigned an international credit rating of BBB with positive outlook to OJSC VEB-Leasing.
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