VEB.RF and EDB to Provide Financing for Russian Equipment Supplied for Renewable Energy in Kazakhstan
VEB.RF will lend 1.282 billion roubles to the Eurasian Development Bank (EDB) to promote renewable energy in Kazakhstan. The credit line agreement was signed by Daniyar Imangaliyev, Vice Chairman of the Management Board, EDB, and Aleksey Ternavskiy, Managing Director, VEB.RF, during the Eurasian Congress.
The project uses Russian-made equipment, thus also boosting economic integration.
“Green technology transfer from Russia to Kazakhstan with the direct involvement of VEB.RF is an example of how the EDB is laying out a new integration agenda. Since 2017, the Bank has provided financing for renewable energy projects worth over 540 million US dollars and totalling about 500 MW. In 2020, the Council of the Bank approved a programme for 600 million US dollars in financing for 500 MW renewable energy projects in 2020–2024. This can increase planned renewable energy financing to over 1 billion US dollars by 2024,” Daniyar Imangaliyev said.
“Support for high-technology exports is a key area of VEB.RF’s activities. In 2021 alone, VEB.RF entered into loan agreements for more than 1.5 billion US dollars in this area. Their stable export potential means that Russian goods and services are highly competitive. Our main focus now is on ESG criteria for project selection, so we are optimistic about the future prospects of joint green integration projects with the EDB, our good and reliable partner,” Aleksey Ternavskiy said.
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.