VEB.RF-Supported Project Included on Intergovernmental Russian-Chinese Commission’s List
The VEB.RF-supported project to build the gas-to-chemicals facility at Ust-Luga (under the ethane-containing gas processing project) was included on the list of important projects at the eighth meeting of the Intergovernmental Russian-Chinese Commission on Investment Cooperation (IGC). The IGC co-chairmen, Andrei Belousov, First Deputy Prime Minister of the Russian Federation, and Han Zheng, Vice-Premier of the State Council of the People’s Republic of China, were in charge of the meeting.
“The Ust-Luga ethane-containing gas processing project is of nationwide significance. It has Chinese participation, and some of its products will be supplied to the Chinese market. The fact that the gas-to-chemicals facility is now on the IGC list of projects means the project will get the necessary support, which is of benefit to both Russia and China,” said Daniil Algulyan, Deputy Chairman and Member of the Management Board, VEB.RF.
Additionally, the parties discussed the current status and growth prospects of investment cooperation. The IGC secretariats, the Consultative Business Committee, national development institutions and companies reported on their performance. The meeting gave particular attention to bilateral cooperation in COVID-19 vaccine production and gas-to-chemicals projects.
VEB.RF became actively involved with the IGC in 2014. VEB.RF is participating in work on 14 projects in the IGC’s pipeline, with six of them to receive financing from VEB.RF.
To support projects within the IGC, VEB.RF and China Development Bank (CDB) signed a framework agreement for project financing for 15 years and are active in fulfilling its conditions. For example, as part of their cooperation in the project to supply 15 ice-class gas carriers to Arctic LNG 2, CDB lent VEB.RF 4 billion yuan.
In collaboration with the Russian Ministry of Economic Development in 2021, VEB.RF fine-tuned and put into operation an electronic system (mpk-cn.ru) enabling more than 200 IGC members to monitor IGC projects on a twenty-four seven basis.
As an IGC member, VEB.RF intends to contribute to the successful implementation of IGC-supported projects and continue to be actively involved with the IGC.
VEB.RF and VTB Infrastructure Holding Agree on IRIIS Certification for Projects
The company’s projects will be provided with independent quality assessment in accordance with international governance standards and best practices.
VTB Infrastructure Holding is a member company of VTB Group and the largest investor in Russian infrastructure.
It is intended that its project initiatives and infrastructure projects will be assessed for compliance with the IRIIS requirements.
Developed by VEB.RF in collaboration with the National PPP Development Center and AECOM, IRIIS uses an infrastructure project assessment methodology to evaluate economic efficiency, environmental safety and social outcomes.
The memorandum of cooperation was signed during VTB Capital’s “RUSSIA CALLING!” Investment Forum. The document was signed by VEB.RF’s Deputy Chairperson and Member of the Management Board Svetlana Yachevskaya and VTB Infrastructure Holding’s CEO Oleg Pankratov.
The Ufa East Exit project of Bashkir Concession Company (part of VTB Infrastructure Holding) is the first in Russia to be awarded IRIIS certification. A syndicate of VEB.RF and VTB is financing the project through the Project Financing Factory. Due diligence showed that high quality standards had been applied to the preparation and planning of the project from the very beginning.
Svetlana Yachevskaya, Deputy Chairperson and Member of the Management Board, VEB.RF:
“It’s particularly important to build up a portfolio of projects for quality infrastructure investment, taking account of Russia’s goals of creating new, modern infrastructure. We hope IRIIS will enable Russian infrastructural projects to be compliant with the highest quality standards and attractive across a wide range of investors. This will increase private infrastructure investment and help the government to support the most promising project initiatives, which today incorporate sustainability and ESG factors to an increasingly large extent.”
Oleg Pankratov, CEO, VTB Infrastructure Holding:
“VTB Infrastructure Holding has always been committed to ESG principles. When we embark on a project, as early as conceptual design, we investigate how it will reduce environmental impacts, what tax revenues it will generate, what jobs it will create, and how it will improve quality of life, contribute to regional planning and raise environmental standards. The agreement with VEB.RF is a significant strategic step for us and reaffirms our commitment to achieving the sustainable development goals and moving from theory to practice.”