On Using Oil and Gas Revenues of the Federal Budget

4 may 2009 года
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In April 2009, Russia’s Finance Ministry carried on implementing Russian Government Order dated March 10, 2009 N 271-r “On Using Funds of the Reserve Fund to Balance the Federal Budget”. Some funds of the Reserve Fund in foreign currency held in accounts with the Bank of Russia were converted into rubles to be later placed into the account to record funds of the federal budget. As a result of the said transactions, 5.36 billion US dollars, 4.03 billion euros, 0.81 billion pounds sterlings were sold and 400.00 billion rubles and the funds received were transferred to the account to record funds of the federal budget.

Under the Budget Code of the Russian Federation, oil and gas revenues of the federal budget for March 2009, in the amount of 165.30 billion rubles were transferred to the account to record funds of the federal budget. Under the Russian government Resolution dated December 17, 2007, N 892 “On Making Settlements and Transferring Funds to Form and USE Oil and Gas revenues of the Federal Budget, Oil and gas Transfer, Funds of the Reserve Fund and the National Wealth Fund”, the abovementioned oil and gas revenues were transferred to the account to record funds received from oil and gas revenues of the federal budget and were later used to finance oil and gas transfer in full.

In connection with the shortage of oil and gas revenues for the reporting month  and in order to secure oil and gas transfer and subject to the said order of the Russian Government and the Finance ministry’s Order dated February 14, 2008 № 25n “On Approving the Procedure for Cooperating between the Russian Finance ministry and the Russian Federal Treasury upon Making settlements and Transferring in order to Form and Use Oil and Gas Revenues of the Federal Budget, Oil and Gas Tranfer, Funds of the Reserve Fund and the National Wealth Fund” some funds of the Reserve Fund  in foreign currency in the accounts of the Bank of Russia, namely, 1.23 billion US dollars, 0.93 billion eoros and 018 billion pounds sterlings were sold for 91.00 billion rubles and the funds received were transferred to the account to record funds of the federal budget.

As of May 1, 2009, the aggregate amount of the Reserve Fund was 3551.47 billion rubles, which is equivalent to 106.81 billion US dollars. As of May 1, 2009, amounts of balances in separate accounts to record funds of the Reserve Fund were:

  • 49.38 billion US dollars
  • 34.67 billion euros;
  • 7.41 pounds sterlings.

As of May 1, 2009, Russia’s reserve position in the IMF formed through the Reserve Fund’ financial resources amounted to 556.88 million SDRs.

 The aggregate calculated income from placing funds of the Reserve Fund recalculated in dollars  for a period from January 15, 2009, to April 30, 2009, was 0.69 billion US dollars, which is equivalent to 22.89 billion rubles. Calculated interest income from placing funds of the Reserve Fund in foreign currency was (in currency of account and ruble equivalent): 0.05 billion US dollars (1.58 billion rubles); 0.39 billion euros (17.24 billion rubles); 0.08 billion pounds sterlings (4.07 billion rubles). The exchange rate difference from recalculating balances of funds in accounts to record funds of the Reserve Fund in foreign currency for a period from January 15, 2009 to April 31, 2009 was a positive value of 218.10 billion rubles.

In accordance with resolution of the Russian Government dated January 19, 2008 № 18 “On the Procedure of Managing ,Funds of the National Wealth Fund”  as of May 1, 2009, 432.10 billion rubles were transferred from the account to record funds of the National Wealth Fund to be deposited with Vnesheconombank and out of this amount:

  • 257.10 billion rubles to be deposited for a period up to December 31, 2019, with an interest rate of 7% per annum;
  • 175.00 billion rubles to be deposited for a period up to October 21, 2013, with an interest rate of 7% per annum.

In April 2009, revenues from placing funds of the National Wealth Fund to the said deposits in Vnesheconombank in the amount of 4.11 billion rubles were transferred to the account to record funds of the National Wealth Fund. In pursuance of the said Resolution of the Russian Government, the said funds were converted into foreign currency

As of May 1, 2009, the aggregate amount of the National Wealth Fund was 2869.44 billion rubles, which is equivalent to 86.30 billion US dollars. As of May 1, 2009, amounts of balances were:

1)     In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:

  • 34.44 billion US dollars;
  • 24.50 billion euros;
  • 4.46 billion pounds sterlings;

2)     on deposits with Vnesheconombank:

  • 432.10 billion rubles.

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 April 30, 2009, was 0.39 billion US dollars, which is equivalent to  13.02 billion rubles. Calculated interest from placing funds of the National Wealth Fund in foreign currency was (in currency of account and ruble equivalent): 0.03 billion US dollars (1.14, billion rubles); 0.22 billion euros (9.80 billion rubles); 0.04 billion pounds sterlings (2.08 billion rubles). The exchange rate differences from recalculating balances of funds in accounts to record funds of the National Wealth Fund in foreign currency for a period from January 15, 2009 up to April 30, 2009, was a positive value of 111.56 billion rubles.

All conversion transactions with funds of the Reserve Fund and the National Wealth Fund were conducted in conformity with the currency structure approved earlier at official rates of foreign currencies set by the Bank of Russia as of the date of transactions and did not have any impact on the conditions of the foreign exchange market.

Indicators of aggregate amounts 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 in 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.

 

Origin: Press Service of Russia’s Finance Ministry

 

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Vnesheconombank and the Kaluga Region Development Corporation Sign Credit Agreement

30 april 2009 года
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Today, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Kaluga Region Development Corporation entered into a Credit Agreement worth 2.4 billion rubles for a period of 10 years.

Funds are to be made available against the Kaluga region Government’s state guarantee to implement the second stage of the project “Development of Industrial Parks Infrastructure: Forming a Cluster to Manufacture Automobiles and Auto Components”. The second stage of the project aims to complete work on equipping project facilities of strategic investors and organize project facilities of auto components manufacturers

The project aims to do engineering preparation for industrial facilities in industrial parks Rosva and Kaluga-Yug and techno park Grabtsevo for deploying production facilities of strategic investors Volkswagen Rus, Volvo Truck, Peugeot-Citroen Mitsubishi Automobiles. The project is being implemented by an authorized company of the Kaluga region Government - the Kaluga Region Development Corporation.

The project’s total value is 6.8 billion rubles, 1.9 billion rubles are budgetary funds of the Kaluga region and the city of Kaluga and 4.9 billion rubles are funds being made available by Vnesheconombank.

Within the framework of the implementation of the project’s first stage (engineering preparation of strategic investors’ industrial facilities), in June 2008, Vnesheconombank provided the Corporation with credit resources worth 2.4 billion rubles for a period of 10 years against the Kaluga region’s state guarantee. At the moment, the implementation of the project’s first stage is almost completed, 475 hectares of industrial areas have been prepared, 2710 new jobs have been created. The Volvo Truck factory was commissioned in January 2009.

The implementation of this project would contribute to the region’s comprehensive socio-economic development and make it possible to raise up to 15 rubles of private investments per 1 ruble of state investments, increase budgetary tax revenues of all levels to 80 billion rubles and create more than 14 thousand new jobs.

 

Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

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Information Message

29 april 2009 года
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Subject to measures for the financial rescue of OJSC Svyaz-Bank, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ purchased all shares of OJSC Svyaz-Bank’s additional issue for a total amount of 70 billion rubles.

 

Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

 

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Vnesheconombank’s Supervisory Board Regular Meeting Held

28 april 2009 года
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V.V Putin’s Opening Address

 

Good afternoon, Esteemed Colleagues!

Today we are holding our regular meeting of Vnesheconombank’s Supervisory Board. We are to discuss a wide range of issues relating to providing further support for the Russian financial system.

I’d like to remind you that last week we discussed at length the situation both in the banks themselves and the measures to increase lending to the real economy. A number of important decisions were made on improving the mechanism for extending state guarantees and on additional capitalization of banks.

I’d like to stress that the main goal of our efforts remains the same – it is to create the most favorable conditions for businessmen’s access to state funds and to make lending interest rates more acceptable for borrowers.

A key role in these efforts is delegated to Vnesheconombank. It should carry on performing its functions as a bank for development.

By the end of 2009, the amount of development credits extended by Vnesheconombank to the domestic economy will be in excess of 300 billion rubles.

High priority should be given to financing projects of national significance aimed at removing infrastructure restrictions and creating new jobs.

I’d like to ask you to focus on providing support for small and medium-sized enterprises. By the way, Russian state banks will commit 100 billion rubles for these purposes and VEB’s program is estimated at 30 billion rubles.

It’s very important to ensure that committed resources reach the real economy in full and are used extensively to support troubled enterprises. I hope that that the Bank will speed up its efforts to this end.

Under the difficult financial conditions we need to set stricter terms of extending credits. Up until now, Vnesheconombank has already extended credits to six commercial banks for a total amount of 257 billion rubles.

Today, Vnesheconombank’s Supervisory Board has considered 12 more applications worth more than 19 billion rubles. In this respect I would like to say that these funds will be made available under the new rules. This means that credits are to be extended for a period of no less than one year at the Central Bank’s interest refinancing rate plus three percentage points. So, it’s necessary to hold additional negotiations with banks and agree to operate on these terms.

Vnesheconombank would also continue to participate in implementing measures for the financial restructuring of Svyaz-Bank. In order to exercise control over the recovery and possible write-offs of Svyaz-Bank’s bad loans, which arose prior to last year’s October, I recommend to set up a special commission and incorporate representatives of law enforcement authorities into it. VEB’s Supervisory Board should exercise control over work performed.

Vnesheconombank’s issuance of foreign-currency denominated bonds would contribute to increased financing of the Russian economy. This step would make it possible to not only neutralize commercial banks’ excessive foreign currency liquidity but also commit raised funds to serve operations of domestic enterprises on foreign market for refinancing Central Bank funds raised earlier.

In the course of our meeting we are supposed to make a decision on issuing foreign currency denominated bonds for a total amount of 5 billion US dollars.

Today we’ll also analyze the Bank’s work on providing financing for Olympic facilities subject to decisions on providing these financial resources made earlier at the previous meeting of Vnesheconombank’s Supervisory Board.

In total, VEB has already provided financing for eight projects for the total amount of 63 billion rubles. These projects are the Sochi thermal power station, the Sochi Airport, the Port of Sochi Immertinsky, the main Olympic village, the Sochi Sea Port, the rubbish recycling complex in the city of Sochi.

Financing worth 1.8 billion rubles was already opened last week.

Let’s get down to work.

Origin: Internet-portal of the Government of the Russian Federation

 

 

Origin: Internet Portal of the Government of the Russian Federation

 

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Vnesheconombank’s Supervisory Board Regular Meeting Held

27 april 2009 года
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v. V Putin’s Opening Address

Good afternoon, Esteemed Colleagues!

Today we are holding our regular meeting of Vnesheconombank’s Supervisory Board. We are to discuss a wide range of issues relating to providing further support for the Russian financial system.

I’d like to remind you that last week we discussed at length the situation both in the banks themselves and the measures to increase lending to the real economy. A number of important decisions were made on improving the mechanism for extending state guarantees and on additional capitalization of banks.

I’d like to stress that the main goal of our efforts remains the same — it is to create the most favorable conditions for businessmen’s access to state funds and to make lending interest rates more acceptable for borrowers.

A key role in these efforts is delegated to Vnesheconombank. It should carry on performing its functions as a bank for development.

By the end of 2009, the amount of development credits extended by Vnesheconombank to the domestic economy will be in excess of 300 billion rubles.

High priority should be given to financing projects of national significance aimed at removing infrastructure restrictions and creating new jobs.

I’d like to ask you to focus on providing support for small and medium-sized enterprises. By the way, Russian state banks will commit 100 billion rubles for these purposes and VEB’s program is estimated at 30 billion rubles.

It’s very important to ensure that committed resources reach the real economy in full and are used extensively to support troubled enterprises. I hope that the Bank will speed up its efforts to this end.

Under the difficult financial conditions we need to set stricter terms of extending credits. Up until now, Vnesheconombank has already extended credits to six commercial banks for a total amount of 257 billion rubles.

Today, Vnesheconombank’s Supervisory Board has considered 12 more applications worth more than 19 billion rubles. In this respect I would like to say that these funds will be made available under the new rules. This means that credits are to be extended for a period of no less than one year at the Central Bank’s interest refinancing rate plus three percentage points. So, it’s necessary to hold additional negotiations with banks and agree to operate on these terms.

Vnesheconombank would also continue to participate in implementing measures for the financial restructuring of Svyaz-Bank. In order to exercise control over the recovery and possible write-offs of Svyaz-Bank’s bad loans, which arose prior to last year’s October, I recommend to set up a special commission and incorporate representatives of law enforcement authorities into it. VEB’s Supervisory Board should exercise control over work performed.

Vnesheconombank’s issuance of foreign-currency denominated bonds would contribute to increased financing of the Russian economy. This step would make it possible to not only neutralize commercial banks’ excessive foreign currency liquidity but also commit raised funds to serve operations of domestic enterprises on foreign market for refinancing Central Bank funds raised earlier.

In the course of our meeting we are supposed to make a decision on issuing foreign currency denominated bonds for a total amount of 5 billion US dollars.

Today we’ll also analyze the Bank’s work on providing financing for Olympic facilities subject to decisions on providing these financial resources made earlier at the previous meeting of Vnesheconombank’s Supervisory Board.

In total, VEB has already provided financing for eight projects for the total amount of 63 billion rubles. These projects are the Sochi thermal power station, the Sochi Airport, the Port of Sochi Immertinsky, the main Olympic village, the Sochi Sea Port, the rubbish recycling complex in the city of Sochi.

Financing worth 1.8 billion rubles was already opened last week.

Let’s get down to work.

Origin: Internet-portal of the Government of the Russian Federation

Origin: Internet Portal of the Government of the Russian Federation

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