Information Message on the Results of Investing Funds of the Reserve Fund and the National Wealth Fund
Russia’s Finance Ministry hereby informs about the results of investing funds of the Reserve Fund and the National Wealth Fund from January 1 to December 31, 2014.
The Reserve Fund
As of January 1, 2015 the aggregate amount of the Reserve Fund was 4 945.49 billion rubles which is equivalent to 87.91 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:
- 40.82 billion US dollars
- 31.39 billion euros;
- 5.76 billion pounds sterlings.
The aggregate calculated income from placing funds of the Reserve Fund in foreign currency accounts of the Bank of Russia recalculated in dollars for a period from January 15 to December 31, 2014 was 0.53 billion US dollars, which is equivalent to 30.00 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts for a period from January 1 to December 31, 2014 was 1 868.70 billion rubles.
The National Wealth Fund
In December of 2014, under Resolutions of the Russian Government dated January 19, 2008 № 18, and dated November 5, 201 № 990,NWF funds were placed in bonds related to implementing infrastructure projects carried out by Russian Direct Investment Fund Management Company (LLC).
- in the amount of 1.08 billion rubles- in the bonds of LLC Infrastructure Investments-3 in quantity of 1 080 000 pieces, with a par value of one bond being 1000 rubles, in order to finance an infrastructure project “Construction of Intellectual Networks” provided for by clause 4 of the List of free-standing infrastructure projects implemented by legal entities in financial assets of which NWF funds and (or) pension savings managed by the state managing company are placed on a reimbursable basis. The List was approvedunder Government Executive Order dated November 5, 2013, № 2044-r.
- in the amount of 4.05 billion rubles – in the bonds of LLC Infrastructure Investments -4 in quantity of 4 059 000 pieces, with a par value of one bond being 1000 rubles, in order to finance an infrastructure project “Elimination of Digital Inequality in Sparsely Populated Areas” provided for by the said List.
In December of 2014, Vnesheconombank early returned financial resources of the Fund placed on deposits in the amount of 39.95 billion rubles in accordance with Federal Law dated October 13, 2008, № 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation”. In accordance with Resolutions of the Russian Government dated January 19, 2008, № 18 “On the Procedure for Managing Financial Resources of the National Wealth Fund”, and dated August 22 2014, № 839 “On Using Financial Resources of the National Wealth Fund to Purchase Preferred Shares of Credit Institutions” the Funds of the Fund in the said amount were used by the Russian Finance Ministry to purchase by private subscription OJSC Bank GPB’s preferred shares in number of 39 954 000 at a par value 1000 rubles for one share which accounts for 61.96% of OJSC Bank GPB’s charter capital.
In December of 2014 under para 5 of clause 96.10 of the Budget Code of the Russian Federation as well as in accordance with Resolution of the Russian Government dated January 19, 2008, № 18 and Government Executive Order dated December 27, № 2739-r, NWF funds in the amount of 100 billion rubles were placed on a subordinated deposit with OJSC Bank VTB for a tenure of 30 yearswith charging interest at a rate equal to inflation in the Russian Federation increased by 1% per annum but no less than 1% per annum, with interest payments to be made every six months
As of January 1, 2015, the aggregate amount of the National Wealth Fund (NWF) was 4 388.09billion rubles which is equivalent to 78.00 billion US dollars including:
1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
- 23.58 billion US dollars;
- 23.29 billion euros;
- 4.23 billion pounds sterlings;
2) 195.03 billion rubles and 6.25 billion US dollars were deposited with Vnesheconombank.
3) under an individual decision by the Russian Government 3.00 billion US dollars were placed in debt instruments of foreign states without placing demands on long-term credit ratings;
4) in bonds of Russian issuers related to implementing free-standing infrastructure projects a list of which is approved by the Russian Government – 5.13 billion US dollars;
5) in preferred shares of credit institutions – 278.99 billion rubles;
6) in subordinated deposit with Bank VTB in order to fund infrastructure projects a List of which is approved by the Russian Government – 100 billion rubles.
The aggregate calculated income from placing funds of the National Wealth Fund in foreign currency accounts of the Bank of Russia recalculated in dollars for a period from January 15 to December 31, 2014, was 0.4 billion US dollars, which is equivalent to 22.38 billion rubles. The exchange rate difference from recalculating monetary resources of the Fundfrom January 1 to December 31, 2014 was 1 499.87 billion rubles including:
- balances in foreign exchange accounts with the Bank of Russia – 1 282.13 billion rubles;
- funds deposited with Vnesheconombank in US dollars – 147.15 billion rubles;
- funds placed in debt instruments of foreign states under a separate decision of the Russian Government without placing demands on long-term credit ratings – 70.59 billion rubles.
In December of 2014, incomes from investing NWF fundswere transferred to the federal budget:
- on Vnesheconombank’s deposits in the amount of 2.28 billion rubleswhich is equivalent to 0.04 billion US dollars. The aggregate income from placing financial resources of the Fund on Vnesheconombank’s deposits from January to December of 2014 was 46.67 billion rubles which is equivalent to 1.27 billion US dollars.
- in debt instruments of foreign states under a separate decision of the Russian Government without placing demands on long-term credit ratings – 75.00 million US dollars, which is equivalent to 4.55 billion rubles. The aggregate income from placing NWF funds in the said debt instruments from January to December of 2014 was 148.33 million US dollars which is equivalent to 7.07 billion rubles
Indicators of the aggregate amount of the Reserve Fund and the National Wealth Fund as well as of calculated incomes (losses) 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.
Origin: Press Service of Russia’s Finance Ministry
Vnesheconombank to fund the supply of Russian equipment to the Republic of Belarus
Vnesheconombank and Open Joint Stock Company Savings Bank Belarus (OJSC JSSB Belarusbank) signed an agreement on providing up to500 million rubles to fund National Union “Belarus Railway”.
Under the agreement, Vnesheconombank’s credit facilities are to be used to pay for equipment to be supplied to National Union “Belarus Railway” by Russian companies to modernize diesel-powered locomotives.
The said transaction is being conducted by Vnesheconombank as part of providing support for Russian high-technology products exports.
OJSC JSSB Belarusbankwas founded in 1922 and is the largest financing institution by the amount of assets.
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The Boguchan Hydro Power Station Opened in the Krasnoyarsk Territory
In the course of the telebridge between the city of Moscow and the city of Kodinsk of the Krasnoyarsk Territory there was a formal ceremonyto launch the Boguchan hydro power station.
In the attendance of the formal ceremony were Russian Deputy Energy Minister VyacheslavKravchenko, Board Chairman, Director General of OJSC RusHydroEvgenyDod, UC RUSAL Director General VladislavSolovjev.
The project’s implementation would promote the region’s socio-economic development. At present, more than 500 people work at the power station. Tax revenues in budgets of all levels are expected to amount to 2 billion a year after the Boguchan power station achieves planned operational targets.
The new station will be among the five most powerful domestic hydro power stations and it will rank 21stin the world’s rating. The Boguchan hydro power station will meet almost a third of the Krasnoyarsk Territory’s electricity needs and 8% of the entire Siberia Federal District’s electricity needs.
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We discussed a number of projects funded by the Bank in aviation, automobile, space and housing construction industries.
Dmitry Medvedev’s Opening Address:
This year we are holding our final meeting of VEB’s Supervisory Board and as usual, we have a very intensive agenda. On the one hand,it’s good that we work hard but on the other hand we have toactually regulate this work. So, I have a proposal for the future: we should draw up a clear-cut schedule of meetings for us to be able to prepare issues despite the number of them - there might be 50 or five issues- having in mind that in the second or third decade of a month we are sure to have a meeting of VEB’s Supervisory Board. This will prevent issues from building up, as is the case now. Vladimir Alexandrovich please think about how you can organize all this with your colleagues from the RF Government Office.
Before moving to our scheduled agenda, I would like to congratulate the entire Bank’s team on its 90th anniversary. The most important thing for the Bank is its reputation and professionalism of its employees. And VEB has been building up its business reputation since December 16, 1924, when the Council of People’s Commissars decreed to establish a bank for foreign trade.
I’d like to say that during this period the Bank had to perform various functions, it was renamed several times, nevertheless the Bank demonstrated its ability to transform taking intoaccount market specifics and proved its reliability as an effective operator of government crisis management programs and the crises unfortunately happened regularlyin the history of our country. Basically, VEB has always been a bank for development and it has done a lot. I’d like to highlight VEB’s participation in the most important event of the outgoing year – the Winter Olympic Games in Sochi where VDEB’s role was maximal.
As of early December, VEB is involved in funding more than 150 investment projects. Vnesheconombank’s strategy for a period of up to 2020 that was approved two years ago provides for VEB’s loan portfolio to increase to 2.5 trillion rubles by 2020. Special emphasis is to be placed on extending credits to small and medium-sized enterprises and on developing import-substituting production facilities as well as on supporting domestic producers of quality and competitive products.
By the way, we have several such issues on our agenda today including projects in aviation, automobile and space industries as well as a number of issues associated with the use of Olympic facilities including a transfer of a number of facilities for the needs of children’s sports and children’s education as a whole. The sports complex was built with VEB’s participation.
Another issue is related to funding housing construction under the program “Housing for the Russian Family”. Here I mean two credit lines worth more than 50 billion rubles to be opened for the program’s operator – the Housing Mortgage Lending Agency. I’d like to remind you that under this program at least. 25 million square meters of economy class housing are to be built. This housing is intended for families with many children and for low-income families as well as for resettlement of people from shabby and dilapidated housing stock. These are noble aims and I hope they will be achieved.
As the Bank is nowadays marking its 90th anniversary,I’ve brought along a gift for it – I signed a government resolution oregulations on extending subsidies from the federal budget in the form of asset contribution to State Corporation Vnesheconombank. Now, under these regulations, the Finance Ministry can enter into an agreement on funding the asset contribution for the year 2014 in the amount of 30 billion rubles. So, Anton Germanovich (Siluanov)attend to this matter. We must do it.
VEB to additionally capitalizeSvyaz-Bank and Bank GLOBEX with 10 billion rubles each – Dmitriev
MOSCOW, December 18./TASS/. Vnesheconombank’s Supervisory Board made a decision to additionally capitalizeSvyaz-Bank with 10 billion rubles and Bank GLOBEX – with 10 billion rubles too. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it after a meeting of VEB’s Supervisory Board.
“A decision was made to additionally capitalize Russian subsidiary banks through subordinated loans and through direct capital” he said adding that he meant Svyaz-Bank and Bank GLOBEX.
He explained that in case of GLOBEX its capitalization through subordinated loans and direct capital was distributed in equal parts of 5 billion rubles.
VEB to additionally capitalize its Ukrainian subsidiary Prominvestbank with $300 million
MOSCOW, December 18 – RIA Novosti. Vnesheconombank’s (VEB) Supervisory Board made a decision to additionally capitalize its Ukrainian subsidiary Prominvestbankwith 300 million dollars, said Vnesheconombank Chairman Vladimir Dmitriev.
“A decision was made to additionally capitalize Prominvestbank with 300 million dollars”, Dmitriev told journalists.
He added that the bank’s capital would be increased by converting Prominvestbank’s debts to Vnesheconombank into corresponding capital.
Earlier Dmitriev said that VEB would not scale down its business in Ukraine and confirmed plans to additionally capitalizeProminvestbank. He said that the bank acted traditionally as one of the largest creditors of real economy in Ukraine and that it holds private deposits.
VEB’s Supervisory Board makes a principal decision to increase financial support for Ford- Sollers
MOSCOW, December 18./TASS/. VEB’s Supervisory Board made a principal decision to increase financial support for Ford-Sollers. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it.
“A principal decision was made to increase financial support for the Ford-Sollers project”, he said adding that the two sideshaven’t come close to a concrete deal yet. But basic parameters of this deal have been approved and VEB plans to work with Ford-Sollers to develop production.
“The program of manufacturing engines and increasing localization volumes required additional funding”, explained Dmitiev.
The Khrunichev Center to receive 37 billion rubles from VEB
MOSCOW, December 18 – RIA Novosti. Vnesheconombank is to provide the Khrunichev Center with funds worth 37 billion rubles, said Vnesheconombank Chairman Vladimir Dmitriev.
“The Khrunichev rocket-building center is also to receive Vnesheconombank’s financial support in the amount of 37 billion rubles”, Dmitriev told journalists.
Vnesheconombank Chairman Vladimir Dmitriev said that the company was in a difficult situationbut Vnesheconombank made such a decision in view of its new management, restructuring and enhanced corporate procedures.
VEB to contribute 9.5 billion rubles to the Sukhoi Civil Aircraft (SCA) charter capital
MOSCOW. December 19. INTERFAX – Vnesheconombank’s (VEB) Supervisory Board made a decision to contribute 9.5 billion rubles to charter capital of the Sukhoi Civil Aircraft (SCA), said Vnesheconombank Chairman Vladimir Dmitriev.
“9.5 billion”, he said to journalists.
V.Dmitriev said that the funds would be contributedto SCA’s charter capital.
VEB and Sberbank decide to change a beneficiary of a Sochi Olympic facility
Moscow. December 18. INTERFAX.RU – Vnesheconombank Chairman Vladimir Dmitriev said that VEB’s Supervisory Board made a decision to change a supervisory owner of the of the KrasnayaPolyana Olympic facility in Sochi, the main owner of which is Sberbank.
“We (with Sberbank’s Head German Gref) discussed projects related to the Olympic legacy and as far as a number of projects are concerned we made a decision to change a beneficiary”, Dmitriev told journalists on Thursday.
An issue of the Krasnaya Polyana facility, the beneficiary of which is Sberbank and the decision to change its beneficiary required the presence of the President and Sberbank’sBoard Chairman.
“We discussed an issue of transferring the asset from one shareholder to another”, said Dmitriev adding that he meant a transfer of the Krasnaya Polyana into the ownership of institutions, whiсh are related to the Krasnodar Territory.
Two credit lines worth 50 billion rubles to be opened for the Housing Mortgage Lending Agency – Medvedev
Moscow. December 18. INTERFAX – Prime Minister Dmitry Medvedev said that two credit lines worth 50 billion rubles were to be opened for the Housing Mortgage Lending Agency (HMLA) under the program “Housing for the Russian Family”.
“Two credit lines in the total amount of 50 billion rubles are to be opened for the program’s operator - the Housing Mortgage Lending Agency”, said D. Medvedev after Vnesheconombank’s Supervisory Board end of the year meeting on Thursday night.
He said that under this program at least 25 million square meters of economy class housing were to be built.
“Basically,this housing is intended for families with many children and for low-income families as well as for resettlement of people from shabby and dilapidated housing stock. These are noble aims and I hope they will be achieved”, the Premier said.
In his turn, Vnesheconombank Chairman Vladimir Dmitriev told journalists that the amount of financial support for HMLA would be about 55 billion rubles.
“40 billion is a deposit from the National Wealth Funds placed with Vnesheconombank to be extended to HMLA in the form of a credit as well as Vnesheconombank’s own funds”, said Vnesheconombank’s Chairman.
V. Dmitriev said that the funds would be used to fund companies being created by the Agency. The companies are to be responsible for creating infrastructure for the construction of affordable and comfortable housing.
“This is something we haven’t had so far and it was an obstacle to funding developers under concrete projects. Here I mean lands managed by housing and public utilities,which cease to be included in the federal property. Infrastructure is to be formed on these lands, which would make it possible for developers to apply for funding to implement affordable housing construction projects”, said V. Dmitriev.
Dmitriev: Petr Fradkov appointed as another Vnesheconombank’s first deputy chairman
Moscow, December 18. /TASS/. Petr Fradkov who was in the recent past Director General of the Export Insurance Agency of Russia (EXIAR) became another Vnesheconombank’s first deputy chairman.
Vnesheconombank Chairman Vladimir Dmitriev told journalist about after VEB’s Supervisory Board meeting.
Dmitriev said that one of VEB’s top-priority lines of activity was to support industrial exports. “And it was for this reason we introduced a post of third, first deputy chairman.Petr Fradkov is to hold this post”, he said.
Alexei Typanov is to take up a post of EXIAR Director General. He was Fradkov’s deputy at EXIAR. All this is being done to retain continuity and enhance Vnesheconombank interaction with an export credit and insurance center to be created – Roseximbank and EXIAR”, he explained.
Vnesheconombank became the winner in nominations “The Aircraft Finance Innovator of the Year” and “The Aircraft Debt Deal of the Year – Latin America” according to Global Transport Finance Magazine.
Vnesheconombank together with the consortium of international banks (Natixis, France;IntesaSanpaoloSpA, Italy; Deutsche Bank SpA, Italy and Deutsche Bank AG, Germany) were presented with awards for participating in the transaction to extend syndicated loans to fund the supplies of SukhoiSuperjet 100 aircraft to Mexico’s largest airline Interjet (ABC Aerolineas, SA DE CV). The Gala Awards Ceremony was held in London on December 8, 2014.
This sort of deals when a Russian bank participates in the consortium of international banks to fund supplies to a third country are unique for the Russian financial market.In total, the Mexican airline is to purchase 20 aircraft and an additional option was signed for another 10 aircraft.
Providing support for Russia’s aircraft construction companies is one of the Bank for Development’s main lines of activity. VEB became a leading partner as part of the projects to export Russian SukhoiSuperjet 100 aircraft.
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The Aircraft Finance Innovator of the Year
The Aircraft Debt Deal of the Year – Latin America