On the Results of Investing Funds of the Reserve Fund and the National Wealth Fund
The Russian Finance Ministry hereby informs you on the results of investing funds of the Reserve Fund and the National Wealth Fund as of October 1, 2010
The aggregate amount of the Reserve Fund was 1 258.26 billion rubles, which is equivalent to 41.39 billion US dollars. Amounts of balances in separate accounts to record funds of the Reserve Fund were:
- 17.26 billion US dollars
- 13.73 billion euros;
- 2.47 pounds sterlings.
Russia’s reserve position in the IMF formed through the Reserve Fund’ financial resources amounted to 991.94 million SDRs.
In September of 2010, financial resources of the Reserve Fund were not used to balance the federal budget.
The aggregate calculated income from placing funds of the Reserve Fund recalculated in dollars for a period from January 15, 2009, to September 30, 2010, was 0.55 billion US dollars, which is equivalent to 16.71 billion rubles. The exchange rate difference from recalculating balances of funds in accounts to record funds of the Reserve Fund in foreign currency for the said period was a negative value of (-)19.34 billion rubles. The exchange rate difference from recalculating funds invested in the reserve position of the Russian Federation in the IMF was-(-) 0.57 billion rubles.
Resolution of the Russian Government dated August 24, 2010 № 649 “On Introducing Changes in Point 12 of Requirements for Financial Assets, in which Monetary Resources of the National Wealth Fund Can be Invested” provides for reducing interest rates on deposits with Vnesheconombank placed through using monetary resources of the National Wealth Fund to finance extending credits by Vnesheconombank to Russian credit institutions from August 25, 2010 from 7 to 6.25 % per annum and from 8.5 to 7.25 % per annum as well as for reducing an interest rate on the deposit in the amount of 30 billion rubles designed to finance extending credits by Vnesheconombank to small and medium-sized enterprises from August 25, 2010 from 8.5 to 6.25 % per annum.
2.75 billion US dollars and 434.02 billion rubles were transferred from the accounts to record funds of the National Wealth Fund to be deposited with Vnesheconombank and out of this amount:
- 285.61 billion rubles to be deposited for a period up to December 31, 2019, with an interest rate of 6.25% per annum;
- 118.42 billion rubles to be deposited for a period up to December 25, 2020, with an interest rate of 7.25 per annum
- 30.00 billion rubles to be deposited for a period up December 25, 2017, with an interest rate 6.25 per annum;
- 2.75 billion US dollars to be deposited for a period up to October 31, 2011, with a floating interest rate exceeding LIBOR six-month rate by 2.75 percentage points.
The aggregate amount of the National Wealth Fund was 2 .722.15 billion rubles, which is equivalent to 89.54 billion US dollars. Amounts of balances were:
1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
- 31.86 billion US dollars;
- 24.67 billion euros;
- 4.48 billion pounds sterlings;
2) On deposits with Vnesheconombank:
- 434.02 billion rubles
- 2.75 billion US dollars
The aggregate calculated income from placing funds of the National Wealth Fund recalculated in dollars for a period for a period from January 15, 2009, up to September 30, 2010, was 0.87 billion US dollars, which is equivalent to 26.39 billion rubles. The exchange rate difference from recalculating balances of funds in accounts to record funds of the National Wealth Fund in foreign currency for the said period , was a negative value of (-)3.19 billion rubles. The exchange rate difference from recalculating funds placed on Vnesheconombank’s deposits was – (-)2.71 billion rubles.
Indicators of the aggregate amount of the Reserve Fund and the National Wealth Fund as well as of calculated incomes from placing funds of the Reserve Fund and the National Wealth Fund were calculated on the basis of official exchange rates of foreign currencies set by the Bank of Russia as of the date prior to the reporting date and of cross rates calculated on the basis of the said exchange rates.
Detailed statistics on transactions with funds of the Reserve Fund and the National Wealth Fund is posted on the Internet site of the Russian Finance Ministry in the following sections: “The Reserve Fund” and “The National Wealth Fund” in appropriate subsections in Russian and English, the statistics is updated on a regular basis.
VEB Enters into Capital of a Company Involved in Developing Supercomputers
Moscow, September 30, RIA Novosti. Vnesheconombank made a decision to enter into capital of T-Platforms Company, which is engaged in developing supercomputer technologies and services, Vnesheconombank Chairman Vladimir Dmitriev told journalists about it on Thursday.
VEB’s Supervisory Board spoke in favor of the project aimed at increasing capacities and entering international markets of Russia’s company engaged in developing supercomputers. This involves both software and design of computers. T-Platforms Company is a pretty well-known company both on the international and Russian market, said Mr. Dmitriev at a briefing after Vnesheconombank’s Supervisory Board meeting.
“We are entering into this company’s capital having a clear idea of withdrawing from the capital. This would allow the company to start serious production in Russia and strengthen its positions abroad”, added VEB’s Chairman.
He reminded that the Company participated in developing the Lomonosov supercomputer.
T-Platforms Company is the largest Russian holding involved in high-speed computations. The Group of companies provides a full range of solutions and services in supercomputer technologies and resource-intensive computations. Six systems developed by the Company were included in the rating of the most powerful supercomputers Top500.
Charter Capital of the Northern Caucasus Development Corporation to Amount to 500 million Rubles
MOSCOW, September 30. /PRIME-TASS/. Charter capital of the Northern Caucasus Development Corporation is to amount to 500 million rubles. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it.
He said that Vnesheconombank would act as the Corporation’s founder. He added that he hoped that other investors and banks would be among founders and shareholders of the Corporation as well.
The Corporation’s task will be to monitor investment projects to be implemented on the territory of the Northern Caucasus and to consult regional authorities. The Corporation is expected to start operating as early as in November of 2010.
According to Dmitriev, original 500 million rubles to be invested in the Development Corporation’s charter capital will be enough to finance projects worth up to 9 billion rubles.
He added that earlier it had been said that the total amount of funds needed for implementing investment projects offered to be submitted for consideration by a would-be Development Corporation would be 2-3 trillion rubles. V.Dmitriev said that he was sceptical about most of these projects. In his opinion, even half of them are unlikely to be prepared properly in terms of bank risks and return on investment.
VEB and Sberbank to Invest 300 million rubles each in the Project “Resorts of the Northern Caucasus”
MOSCOW, Sept 30 – RIA Novosti. Vnesheconombank and Sberbank are to invest 300 million rubles each in the project “Resorts of the Northern Caucasus”. The project provides for creating five mountain-ski resorts in the region. Another 6 billion rubles are to be invested by OJSC Special Economic Zones, Vnesheconombank Chairman Vladimir Dmitriev said on Thursday.
“We have agreed with Sberbank that Vnesheconombank and Sberbank would invest 300 million dollars each in this company (OJSC Resorts of the Northern Caucasus), to my best knowledge OJSC Special Economic Zones would invest funds in the amount of 6 billion rubles”, Mr. Dmitriev said at a briefing after VEB’s Supervisory Board meeting where they discussed an issue of VEB’s participation in the project.
According to him, this mechanism would be used to raise private investment for this region to finance infrastructure and other facilities.
OJSC “Resorts of the Northern Caucasus” is to be founded to manage a unified tourist complex, which is being formed in the region now. Under this project the following mountain ski resorts are to be built: Arkhyz in Karachaevo-Cherkessia, Lago-Naki in Adygeya, Mamison in North Ossetia, Matlas in Dagestan and Elbrus in Kabardino-Balkaria.
VEB to Invest 7 billion Rubles in Float Glass Manufacturing
MOSCOW, Sept 30 – RIA Novosti. Vnesheconombank is to invest more than 7 billion rubles in building a float glass manufacturing factory in Dagestan, said Vnesheconombank Chairman.
“We hope that in the most immediate future after a detailed comprehensive examination of all documents is completed, funds would be made available and the amount of funds is as much as 10 billion rules, with Vnesheconombank’s participation share being more than 7 billion rubles”, said Dmitriev at a briefing on Thursday.
According to him, an appropriate decision was made at VEB’s Supervisory Board meeting on Thursday.
He added that the said glass factory was to be built near Makhachkala and it would be equipped with state-of-the- art equipment. Private investments would amount to about 30%.
Moreover, Dagestan’s authorities are already rendering assistance in allocating a plot of land and in building an infrastructure. Dagestan’s float glass factory’s capacity is to be 600 tons per day. The project provides for building a new high-technology production facility of various types of glass capable of meeting the construction industry’s needs in the Northern Caucasian, Southern, Volga and Central Federal Districts, the Press Office of the Russian Government was quoted as saying.
The glass factory would manufacture top-quality innovative products having unique energy-saving qualities – a 30% percent reduction in thermal losses in a cold period of the year and a 30-45% solar energy reduction in a warm period of the year.
A manufacturing technology is to be provided under a license of the world’s largest manufacturer of new extra-thin glass coatings, PPG Industries (the U.S.).
The project’s implementation is expected to create 300 new jobs and increase tax revenues in the budgets of all levels.
VEB to Buy out Svyaz-Bank’s Problem Loans for an Amount of 80-90 Billion Rubles, to Pay 8-9 Billion Rubles for them
Moscow. September 30. INTERFAX-AFI – Vnesheconombank is to buy out Svyaz-Bank’s (RTS: SVZB) problem loans for an amount of 80-90 billion rubles, Vnesheconombank Chairman Vladimir Dmitriev told journalists about it.
“After buying out this part of debts the balance sheet would be cleaned out of bad loans”, said Dmitriev after VEB’s Supervisory Board meeting. At the same time V Dmitriev said that the appraised value of this portfolio of bad loans was about 8-9 billion rubles. The appraised value between 8 and 9 billion rubles accounts for about 10%”, said Dmitriev.
VEB’s Supervisory Board was informed about the progress of this project’s implementation. V.Dmitriev added that talks with partner-banks on establishing a Postal Bank are still underway. He also added that a partner was most likely to be chosen at least in a month’s time. He explained it by the fact that proposals submitted to VEB by partners on September 15 did not meet all the requirements. VEB’s Chairman added that they discussed with partner-banks such issues as to how they would compensate for the Post of Russia’s loss of incomes because of its refusal to conduct financial transactions and as to how to compensate for VEB’s expenses on reorganizing Svyaz-Bank.
VEB to Choose a Partner for Establishing a Postal Bank on the Basis of Svyaz-Bank at Least in a Month’s Time
MOSCOW, September 30. /PRIME-TASS/. Vnesheconombank is to choose a partner for establishing a Postal Bank on the basis of Svyaz-Bank at least in a month’s time.
According to him, Nomos-Bank or Bank Russian Standard can become VEB’s partner.
V.Dmitriev didn’t specify possible dates of establishing a Postal Bank saying that Svyaz-Bank’s re-branding into a Postal Bank could take place in parallel with talks on searching for a partner.
According to V.Dmitriev, Vnesheconomank expects its potential partners to submit proposals on how and when to compensate the Post of Russia’s loss of incomes because it is to transfer a number of its financial transactions to a Postal Bank. And of course we would like them to disclose their stand on compensating for Vnesheconombank’s expenses on reorganizing Svyaz-Bank through using the Central Bank’s deposit”, said V.Dmitriev.
According to him, they have discussed the progress of implementing decisions on reorganizing Svyaz-Bank at Vnesheconombank’s Supervisory Board meeting. They stated that the measures taken by Vnesheconombank by way of using the Central Bank’s deposit worth 125 billion rubles helped to improve Svyaz-Bank’s financial indicators and secure its sustainable development. “These measures yielded tangible positive results”, noted V.Dmitriev.
Since the beginning of the year, the Bank has increased its loan portfolio by more than 40 percent. The amount of raised funds increased by more than 40 percent. The bank’s equity capital is about 45 billion rubles with capital adequacy ratio being more than 43 percent. This is quite a positive indicator enabling the bank to increase its transactions”, said V.Dmitriev.
RusAl to Repay Credit Worth $4.5 Billion to VEB within a Few Hours
MOSCOW. September 30. INTERFAX-AFI – VEB Chairman Vladimir Dmitriev told journalists that RusAl would repay its credit worth $4.5 billion, which it raised from Vnesheconombank in autumn of 2008 in the nearest time.
“I think it’s a matter of several hours, funds are available to refinance the debt in full’, said Dmitriev.
RusAl is planning to refinance its debt to VEB through raising a credit from Russia’s Sberbank.
Earlier, Sberbank President German Gref said that the credit could be refinanced in September.
V.Dmitriev said that that a key provision of the transaction model agreed upon by the three parties was that under no circumstances the mining and smelting plant’s collateral (Nornickel’s blocking stake owned by RusAl and pledged against VEB’s credit) was not to be alienated from the state.
In early August it became known that that Sberbank approved extending a credit worth $4.5 billion to RusAl for a period of up to December 2013 to refinance its debt to VEB. The sum of the credit approved covers the current debt of the Aluminum Company and capitalized interest.
In November 2008, RusAl raised a credit worth $4.5 billion from VEB to repay a loan obtained in April of 2008 from a syndicate of Western banks to purchase 25% +2 shares of the Norilsk Nickel Mining and Smelting Company. Last autumn VEB rolled over the credit for another year – until October 29, 2010.
Vnesheconombank is ready to explore the possibility of participating in the INTECO project in the Rostov region.
MOSCOW, September 30. /ITAR-TASS/. Upon receiving sufficient documentation on the construction of integrated home-building factories in the Rostov region by the INTECO Company, Vnesheconombank is ready to explore the possibility of participating in this project. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it.
According to him, VEB continues to examine the materials made available.”In order to get divorced one should first get married”, Dmitriev commented on a number of publications in the mass media that wrote that VEB had got divorced with INTECO and would not participate in this project.
“We are examining the project on a routine basis”, said Dmitriev. As soon as we receive enough materials to examine the Rostov project thoroughly we’ll study them and make a decision in accordance with the established procedures”.
VEB’s Supervisory Board approved a proposal for a new remuneration system in the state corporation
Moscow. September 30. INTERFAX-AFI – Vnesheconombank’s Supervisory Board approved a proposal for a new remuneration system in the state corporation, VEB Chairman Vladimir Dmitriev told journalists about it.
“We also made a decision to approve a proposal agreed upon with the key financial and economic authorities for a system of financial indicators which would form the basis for VEB’s remuneration system”, he said at a briefing after Vnesheconombank’s Supervisory Board meeting.
Moreover, the Bank’s Supervisory Board approved regulations on a personnel and remuneration committee.
“We are forming a full-fledged management structure in line with the international banking standards. This structure is designed to manage Vnesheconombank as a state corporation”, he added.
V.Dmitriev said that all these decisions had been made without any linkage to a possible transformation of VEB into a joint stock company.
According to him, VEB’s proposals for employee remuneration were made on the basis of indicators of the five largest banks with state participation.
VEB is to provide sponsorship of 360 million rubles to Russia’s national hockey team
MOSCOW, September 30 – RIA Novosti. Vnesheconombank is to provide sponsorship of 360 million rubles in this season to Russia’s national ice-hockey team, Vnesheconombank Chairman told journalists about it.
According to him, the decision was taken on Thursday at the Bank’s Supervisory Board meeting conducted by Russian Prime Minister Vladimir Putin.
“Another decision I’d like to mention is the one on providing sponsorship of 360 million rubles to Russia’s national ice-hockey team. The funds are to be used to support the team in this season as well as to form the basis for our ice squad’s successful performance at the 2014 Winter Olympics”, said Dmitriev.