Vnesheconombank releases its quarterly bulletin "Sustainability in DFI and IFO"
PROMOTING SUSTAINABILITY WORLDWIDE
196 countries adopted a new agreement on climate change (that will replace the Kyoto Protocol) at the twenty-first session of the Conference of the Parties (COP 21) to the United Nations Framework Convention on Climate Change (UNFCCC) on 12 December 2015 in Paris. (p.8)
TOWARDS A GREEN ECONOMY FOR RUSSIA
Russia's efforts slowed down global warming for at least a year, Russian president Vladimir Putin said, addressing the Paris Climate Change Conference.
Russia not only prevented the growth of greenhouse gas emission, but also significantly reduced it. (p.11)
The UNEP Inquiry and the Climate Bonds Initiative presented their report "Scaling green bond markets – Guide for the Public Sector" during the COP 21. (p.14)
SUSTAINABILITY RATINGS AND RESEARCH
The new OECD report "Climate Change Mitigation: Policies and Progress" stresses the need for the majority of countries to accelerate their efforts and strengthen their climate change policies to meet their mitigation goals. (p.16)
SUSTAINABLE PRACTICES OF LEADING DEVELOPMENT FINANCE INSTITUTIONS
The Industrial Development Bank of India launched a $350 million five-year green bond issue. (p.19)
SUSTAINABILITY IN VNESHECONOMBANK
Vnesheconombank has been named the winner of the 18th Annual Report Competition for the Best Report on Corporate Social Responsibility and Sustainable Development. (p.20)
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 February 29, 2016.
The Reserve Fund
As of March 1, 2016, the aggregate amount of the Reserve Fund was 3 747.06 billion rubles which is equivalent to 49.90 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:
- 22.71 billion US dollars;
- 20.26 billion euros;
- 3.44 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 February 29, 2016 was 0.12 billion US dollars, which is equivalent to 9.14 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts for a period from January 1 to February 29, 2016, was `106.49 billion rubles.
The National Wealth Fund
On February 17, 2016, the Russian Finance Ministry filed a lawsuit against Ukraine in the High Court of London to secure repayment of Ukrainian obligations with a par value of $3.00 billion and Russia's court costs.
As of March 1, 2016, the aggregate amount of the National Wealth Fund was 5 356.96 billion rubles which is equivalent to 71.34 billion US dollars including:
1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
- 19.67 billion US dollars;
- 20.76 billion euros;
- 3.83 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 infrastructure projects, a list of which is approved by the Russian Government – 112.63 billion rubles and 4.11 billion US dollars;
5) in preferred shares of credit institutions – 278.99 billion rubles;
6) on deposits of OJSC Bank VTB and Bank GPB (JSC) in order to fund infrastructure projects a list of which is approved by the Russian Government - 164.43 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 February 29, 2016, was 0.12 billion US dollars, which is equivalent to 8.98 billion rubles. The exchange rate difference from recalculating monetary resources of the Fund from January 1 to February 29, 2016 was 129.78 billion rubles including:
- balances in foreign exchange accounts with the Bank of Russia – 100.27 billion rubles;
- funds deposited with Vnesheconombank in US dollars – 13.81 billion rubles;
- funds placed in debt instruments of foreign states without placing demands on long-term credit ratings –6.62 billion rubles.
- foreign-currency denominated bonds of Russian issuers related to implementing infrastructure projects, a list of which is approved by the Russian Government – 9.08 billion rubles.
The aggregate income from placing financial resources of the Fund in the authorized financial assets minus funds in the accounts of the Bank of Russia from January to February 2016 was 2.40 billion rubles which is equivalent to 0.03 billion US dollars.
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
Russian Prime Minister Dmitry Medvedev holds a working meeting with Vnesheconombank Chairman Sergei Gorkov
D.Medvedev: Sergei Nikolaevich, we have met each other several times before and discussed the current business situation at Vnesheconombank and prospects for its development. You’ve been appointed Chairman of Vnesheconombank and I wish you every success. The work ahead is not of course easy but you are a very experienced person, well-versed in banking and good at tackling various crises. That is why I hope that you and your team will promote the Bank’s development and help to address problems that have accumulated for many years of its operation as well as develop new approaches, create a more efficient management system and of course accomplish current Vnesheconombank’s financial tasks. I hope you’ll be able to use your business experience in previous positions including your work at Sberbank as you will have to deal with domestic and foreign issues and here I mean foreign assets and the need to hold consultations with foreign credit institutions.
At my request you have already been introduced to the Bank’s team and I hope you’ve already got down to work.
With a view to the fact under applicable legislation our Supervisory Board is comprised of members of the Russian Government and is headed by the Prime Minister I would like to ask you to get down immediately to preparing our next Supervisory Board meeting. We’ll set a date of the meeting but we should not delay because issues are piling up and in a number of cases these issues fall within exclusive competence of VEB’s Supervisory Board and without our decisions you won’t be able to move any further.
And the second and maybe the most important thing is that you should go on working with my colleagues in the Government, with vice premiers, the Finance Minister, the Economic Development Minister on developing a plan for addressing the current economic problems that have accumulated in VEB’s operation and here I mean its additional capitalization and use of other economic instruments to improve its financial and economic indicators as well as effective management of its assets because these assets are different - they were purchased in various situations, at different datesand should be put in order either in terms of their management or in terms of their disposalif VEB’s Supervisory Board finds that asset disposal is an effective method of addressing problems confronted by Vnesheconombank.
I’d like to wish you every success once more I hope that you’ll be able to a form a modern effective team that would address VEB’s most important tasks.
In the end I would like to say that despite the current economic problems and unfavorable foreign economic conditions including the shutting down of capital markets for VEB, Vnesheconombank remains to be our leading development institution and we are going no only to retain it in this capacity but also upgrade it because without such institutionour economy’s efficient full-fledged development is impossible.
S. Gorkov: Dmitry Anatoljevich, thank for your confidence in me. A task to be addressed is formidable and very important for our country. It will take some time to sort out current basic problems. These problems really exist. But I’m sure that with the Government’s assistance we’ll be able to cope with them and create a development institution under the new conditions. There is no doubt that the new conditions are quite different from those that were ten years ago but I’m sure that our new team with the experience gained by the old team will be able to cope with problems with the Government’s and your assistance.
D. Medvedev:Let’s deal with it and discuss now some of the current issues.
Vnesheconombank announces the appointment of Sergey N. Gorkov as Chairman of Vnesheconombank.
Sergey N. Gorkov was born on December 1, 1968.
He graduated from the Academy of the Federal Security Service of Russia.
From November 2008 he worked as Director of HR Policy Department at Sberbank of Russia. In October 2010 he was appointed Deputy Chairman of the Executive Board of Sberbank. Previously he held senior positions in major Russian companies.
Sergey Gorkov was awarded the Medal of the Order of Merit for Services to the Fatherland, 2nd class and the Certificate of Honour of the Russian Government.
Media Relations Office
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State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) fulfilled its obligation to redeem Eurobonds amounting to 500 million CHF on February 17, 2016.
Debut 5-year CHF Eurobonds Series 4 were issued on February 17, 2011 at the coupon rate of 3.75%.
Media Relations Office
Phone: +7 (495) 608-46-93, Fаx: +7 (499) 975-21-34