Vladimir Putin Signs Legislation on VEB.RF’s New Functions and New Name, on Callable Capital
Russian President Vladimir Putin signed legislation to change the name of Vnesheconombank to State Development Corporation VEB.RF, clarify its functions and provide it with callable capital. The new name reflects the role of VEB in carrying out the tasks assigned by the Russian President and the Russian Government.
An article was introduced into the law on the development bank to assign new functions to VEB.RF to organise and coordinate development institutions’ activities ensuring Russia’s long-term socio-economic development. The federal law mandates VEB.RF to provide specific development institutions with financing and guarantees and use other methods to guarantee the performance of their obligations, including paying indemnities or insured amounts.
The amendments to the Budget Code allow the Government to allocate public budget funds to VEB.RF, Federal Corporation for the Development of Small and Medium Enterprises (SME Corporation) and Russian Export Center for their callable capital.
Additionally, the legislation clarifies a mechanism for issuing the authorised capital of VEB.RF, Russian Export Center and SME Corporation.
A session of the Federation Council passed legislation to change the name of State Corporation Vnesheconombank to VEB.RF, introducing several new functions, such as its role as a development institution coordinator.
The amendments are to be made to the Federal Law On the Bank for Development and certain legislative acts of the Russian Federation.
The law changes the name of State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” to State Development Corporation VEB.RF.
The law also assigns new functions to VEB.RF to coordinate the development institutions’ activities as resolved by the Russian Government.
Another law amends the Budget Code. The Government will approve resolutions concerning the authorised capital of VEB.RF in the form of paid-in capital and the amount of its authorised capital that should subsequently additionally be contributed by the Russian Government (callable capital).