Vladimir Putin's preliminary remarks:
Ladies and gentlemen,
Today we are holding a regular meeting of the Vnesheconombank Supervisory Board.
When we decided to reorganise VEB in 2007, we envisaged more than just another agency to develop and modernise the national economy.
I want to remind you that implementing international initiatives to develop infrastructure and launch innovations is undoubtedly one of Vnesheconombank's priorities.
I cannot but mention in this regard that a month ago VEB was elected to the Long-Term Investors Club, which brings together the largest and most authoritative government development banks of foreign countries.
I am confident that Vnesheconombank will make a worthy and constructive contribution to its work, and cooperation will benefit both the Russian economy and our partner countries.
A few days ago, VEB placed the first issue of ten-year Eurobonds to total $1.6 billion. As the bank CEO reported, demand greatly exceeds the offering, showing great confidence in the bank and readiness to invest in our country's key significant development projects.
VEB will be floating rouble bonds next and I hope they will be just as popular with investors, and these extra revenues from the domestic and foreign markets will help the bank to considerably increase the funds it generates for Russian industry.
Let us turn now to several items on today's agenda. We will consider the proposals for VEB to take part in lending money to new investment projects.
The comprehensive development of the Angara River's lower reaches in the Krasnoyarsk Territory is the most ambitious of these projects. It is one of the Siberian development strategy top priorities. The project envisages the construction of the Boguchany hydropower plant with a 3 hectowatt capacity, an aluminium plant and other industrial plants, and the necessary transport and social infrastructure.
The project will give practical results even within the year. I mean here the opening of the first unit of the Boguchany hydropower plant, which is scheduled to reach full capacity in 2013, when the Boguchany aluminium plant is also to open.
Vnesheconombank plans to invest 50 billion roubles in their construction. The power plant requires 28.1 billion and the aluminium plant 21.9 billion. Railway and highway construction will begin next.
I want to mention another energy project. VEB will take part in financing the construction of the Adler thermal power plant, part of the Olympic preparations in Sochi. The bank has earmarked 19.5 billion roubles for it, while overall plant construction costs are estimated at 28 billion roubles. Due to open before the end of 2012, the plant will produce 360 megawatts.
Last but not least, the decision has been made to establish a special export credit insurance agency, affiliated to Vnesheconombank. It will become one of the pivotal bodies in the national export promotion system, and will have an emphasis on machinery, equipment and other high-tech commodities and services.
As I know, a wide range of opinions have been advanced here on how to organise the agency's work, and it is good that we have come to an agreement on its principles.
Let us get down to business.
On Vnesheconombank’s Supervisory Board Decisions
VEB’s Supervisory Board approved financing a number of projects
Moscow, June 29. INTERFAX - The Supervisory Board of Vnesheconombank (VEB) at the session on Wednesday approved a number of large-scale projects, Vladimir Dmitriev, Chairman of the Bank, informed the journalists. In particular, according to his words, the financing required to complete the construction of the Boguchansk hydroelectric power station and the aluminium plant was approved. “After the approval by the Supervisory Board, VEB will start its financial support for these projects’ implementation – overall, about RUB 50 billion will be invested by VEB”, said V. Dmitriev.
He reminded that these projects are implemented adopting a PPP approach, with the state and the territorial administrations undertaking the construction of the infrastructure – both road and social.
“Concerning one of these projects, he added, should the “Russian Railroads” and the Krasnoyarsk territory be unable to finance the infrastructure, VEB would be prepared to resolve the issue”, said V. Dmitriev.
To quote Mr. Dmitriev, presently all the schemes securing project viability have been developed and well tested with the instruments designed to minimize VEB’s risks put in place.
“As far as the Boguchansk hydro-electric power station and the aluminium plant are concerned, these are the projects where the term of funds allocation actually exceeds 15 years”, said V. Dmitriev.
In this case, he pointed out, complicated transactions have to be appropriately structured since long-term funds either in rubles or in foreign currency are not presently available.
Besides, the issue of continuing the financing of Vladivostok airport was another topic on the Supervisory Board agenda.
“Today the decision has been made to extend additional RUB 900 million to finance this project” said V. Dmitriev.
Also, the parameters of further financing the “Rosa Khutor” company have been agreed. (the construction of a mountain skiing resort in Sochi is underway).
“We continue financing and bring project parameters in conformity with the terms and conditions approved by the Supervisory Board for projects implemented in the run up to the Olympic games, I actually mean the interest rates”, Mr. Dmitriev specified.
Another important project is financing the construction of the Adler heat and power plant.
“The volume of financing amounts to almost RUB 20 billion, the term - 15 years, the rate well within the range of ones applicable for Olympic facilities. The same is true for the ratio of project initiator funds/credit leverage of Vnesheconombank”, said V. Dmitriev.
To quote the Russian Government Chairman Putin, an export credit insurance agency will be established within VEB’s structure.
Moscow, June 29. INTERFAX – V. Putin, the RF prime minister, unveiled plans to establish Vnesheconombank’s subsidiary – an export credit insurance agency.
“A decision has been prepared to create a specialised export credit insurance agency, VEB’s subsidiary, called to become one of the key elements of the exports support system”, said V. Putin at the meeting of VEB Supervisory Board on Wednesday.
He emphasized, the focus will be primarily placed on moving Russian-made machinery and equipment and other high tech goods to foreign markets.
After the session of the Supervisory Board, V. Dmitriev, VEB’s CEO, told the journalists that VEB would extend RUB 30 billion for the agency for its start up operations.
“The Agency is being created as a 100% subsidiary of VEB, and the Bank allocates RUB 30 billion for the Agency to launch its operations. Admittedly, in 2010, no state guarantees will be needed for the implementation of the first projects of the Agency”, he said.
VEB is considering issuing RUB 190 billion 20-year bonds.
Moscow. June 29. INTERFAX-Financial Information Agency – Vnesheconombank (VEB) is considering issuing 10-year bonds amounting to RUB 190 billion - V. Dmitriev, VEB’s CEO reported at the briefing on Wednesday.
“This program was also approved (by VEB’s Supervisory Board – the notes of Financial Information Agency). These are 10-year bonds amounting to RUB 190 billion”, he said and pointed out that VEB does not intend to place the whole amount all at once.
VEB’s CEO stressed that the first bond issue within the frames of this program is scheduled to be placed in autumn 2010. “The placement could be made already in autumn”, he added.
VEB agreed with “Svyazinvest” proposal related to the sale of 9.8% of shares of “Rostelecom”.
Moscow. July. INTERFAX – Financial Information Agency – VEB agreed with “Svyazinvest” proposal related to the sale of its 9.8% stake in “Rostelecom” (RTC: RTKM),V. Dmitriev, VEB’s CEO, informed to journalists.
“We have agreed the major parameters of the option agreement with “Rostelecom”. We agreed with “Svyazinvest” that this package will be purchased on a break-even condition”, he said.
V. Dmitriev pointed out that within this transaction two options could be exercised in three and four years. He reiterated that “Svyazinvest” will buy “Rostelecom” shares with due regard for the price at which VEB bought them, that is RUB 230 per share.
Sberbank refinances RusAl’s loan raised from VEB amounting to USD 4.5 billion – said Dmitriev.
Moscow. July 28. INTERFAX – Financial Information Agency – Sberbank of the Russian Federation refinances the RusAl’s loan amounting to USD 4.5 billion raised from VEB – said V. Dmitriev, VEB’s CEO, at the briefing on Wednesday.
“Today the parameters of the transaction were agreed. Sberbank undertakes to secure the refinancing”, he said and pointed out that the risks will be equally apportioned between Sberbank and VEB.
V. Dmitriev added that VEB will act as a pledge holder and a guarantor under this loan.
“The pledge (major package of shares of “Nornikel” – notes by Financial Information Agency) is to be equally divided between Sberbank and VEB”, he said.
According to Mr.V. Dmitriev’s judgment, the block of shares of “Nornikel” will remain under state control till the agreement terminates.
As it was reported earlier, “RusAl” requested Sberbank of the Russian Federation to refinance a loan amounting to USD 4.5 billion. German Gref, Sberbank’s CEO, declared that the transaction on refinancing the loan to “RusAl” will be implemented by Sberbank jointly with VEB.
Russian Prime Minister V.V.Putin Conducts a Meeting of Vnesheconombank’s Supervisory Board
The Premier said that although in 2009 VEB diverted considerable funds for implementing crisis management measures; it also carried on operating as the Bank for Development. V.V. Putin expressed confidence that in 2010 VEB’s financial resources would be used most effectively to technologically upgrade Russian industries and generate additional demand for innovations.
V.V. Putin’s opening address
Good afternoon esteemed colleagues. Let’s start Vnesheconombank’s Supervisory Board meeting.
First, we are to approve the report on the bank’s performance for 2009. And here I’d like to underline a very important point. The Bank spent considerable resources to implement crisis management measures and in this respect I’d like to say that these measures were quite successful.
At the same time, VEB carried on operating as the Bank for Development. Its investment loan portfolio increased by 77% to 230 billion rubles. Due to the Bank’s financial support 24 new projects were started in power engineering, agriculture and a number of other sectors. VEB launched a 250 billion ruble program to support mortgage lending. This also enabled commercial banks to reduce interest rates on mortgages. Sberbank President German Gref told me that Sberbank had abolished all bonuses and cut mortgage interest rates by 3% on average.
VEB provided considerable support worth 40 billion rubles to small and medium-sized enterprises. And in this respect I would like to say today that VEB’s overall performance can be assessed as positive.
In 2010, Vnesheconombank should also place main emphasis on preparing new investment projects, some of which we’ll discuss today.
For example, we have been offered to extend a long-term credit to build a modern timber deep processing integrated facility at the port of Vanino in the Khabarovsk Territory.
To my best knowledge, the project’s initiators have completed the first stage from the ground up in mid 2009.The second stage is to be completed in the second quarter of 2010.
Vnesheconombank is completing an eleven-billion ruble loan to finance the construction of the third stage, which is expected to increase production facilities and create 500 new jobs.
It should be noted that the investment in timber processing was not VEB’s first investment in the region, specifically, at the port of Vanino. In 2009, the construction of a new sea coal terminal with a designed export capacity of 12 million tons of coal started in Vanino.
Meanwhile, RAO RZhD is actively renovating the railway line from Vanino to Komsomolsk-on-Amur. Recently we held a meeting to discuss the project’s implementation. One of the most important elements of the project is to reconstruct and renovate the Kuznetsovsky Tunnel. It was built as early as in 1945. The new railway line would make it possible to use the Baikal-Amur Mainline to its full capacity.
It is obvious that it is this comprehensive approach to developing territories, infrastructure and natural resources that ensures sustainable development of the Far East in the most effective way.
Let me mention one more transport project. Vnesheconombank is to finance the purchase of two ice-class tankers. These are modern tankers, which our transport companies need badly. They are designed to transport oil produced offshore in the Barents Sea.
The first tanker, Mikhail Ulyanov, has been already delivered to the customer, Sovcomflot. The other tanker, Kirill Lavrov, has been launched and is due to be commissioned soon.
Vessels of this class haven’t been built in Russia before. They were built with the use of cutting-edge technology and breakthrough innovations. That is to say, VEB’s financial resources will be used to technologically upgrade Russian industries, in this particular case shipbuilding, and will generate additional demand for innovations.
It is these projects that we should focus in the future.
Let’s proceed to our discussion.
Origin: Internet Portal of the Government of the Russian Federation
On Decisions Taken by Vnesheconombank’s Supervisory Board
VEB’s profit for 2009 will be used to finance its activity – Dmitriev
NOVO-OGAREVO, May 26 - RIA Novosti. Vnesheconombank’s profit for 2009 will be fully allocated to the state corporation’s funds and used to finance its activity, Vnesheconombank Chairman Vladimir Dmitriev told journalists on Wednesday after the meeting of the state corporation’s supervisory board.
“The profit has been fully allocated to the Bank’s funds and will be used to finance Vnesheconombank’s activity”, said Dmitriev reminding that VEB’s profit for 2009 was 31 billion rubles.
The state corporation’s profit for the first quarter exceeded 20 billion rubles. Dmitriev said that if a decision to reduce interest rates on subordinated loans extended by VEB to Russian banks as part of crisis management measures was taken, the state corporation’s profit from such loans would be reduced by two thirds.
According to him, in terms of profit amount for 2009 the state corporation came out on top among other banks. In terms of profit amount for the first quarter of 2010, the Bank took second if not first place. Reportedly, Vnesheconombank’s net profit for January-March of 2010 was 23.1 billion rubles against 1.1 billion in the same period of 2008.
The Bank’s assets amounted to 1.8 trillion rubles and Vnesheconombank is among the third largest Russian banks.
Dmitriev reminded that incomes of 175 billion rubles from transactions with securities were reinvested and were committed for achieving core objectives.
VEB’s Supervisory Board approves the Bank’s participation in projects worth almost 500 Million Euros
NOVO-OGAREVO, May 26, /ITAR-TASS/. Today, VEB’s Supervisory Board approved the Bank’s participation in projects worth almost 500 million euros. Vnesheconombank Chairman Vladimir Dmitriev told journalists that the financing amount for the construction of tankers would be about 240 million euros and that another 250 million euros would be used to finance the construction of a timber processing factory.
VEB will participate in funding the project aimed at purchasing and operating Arctic shuttle tankers by Sovcomflot. The tankers are designed to ship oil, oil products and gas condensate. The main prospective transport route is the Prirazlomnoye oil field /the Pechera Sea/ - Western Europe. Before the start of the oil field’s exploitation, the tankers are expected to be used for shipping liquid hydrocarbons along the shipping line from ports of the Baltics to ports of Western Europe.
A timber processing integrated plant manufacturing chipboards and sawn timber is planned to be built in the Vanino district of the Khabarovsk Territory with a timber processing capacity of up to 1.1 million cubic meters per year. The project is aimed at enhancing natural resources utilization efficiency, promoting Russian industrial exports and boosting the region’s socio-economic development.
VEB to provide Sovcomflot with 240 million euros for purchasing Arctic tankers
Novo-Ogarevo. May 26. INTERFAX-AFI – Vnesheconombank (VEB) is to provide Sovcomflot with 240 million euros for purchasing and operating Arctic vessels designed to ship oil, oil products and gas condensate, VEB Chairman Vladimir Dmitriev told journalists.
V.Dmitriev said that that the Bank’s Supervisory Board approved the Bank’s participation in financing this project on Wednesday.
VEB’s Chairman said that this project was to be financed as part of Vnesheconombank’s leasing business. These vessels are planned to be bought out by VEB-Leasing and then let on time charter to Sovcomflot and Gazprom (PTC: GAZP).
These vessels are planned to be used for shipping oil and gas from the Prirazlomnoye Arctic oil field (the Pechora Sea). But even before the Prirazlomnoye oil field starts to operate, these vessels will be used in other projects. “Even now there is a contract for shipping oil from Murmansk to China”, said V.Dmitriev.
Two tankers Mikhail Ulyanov and Kirill Lavrov were built by the order of Sovcomflot at the shipyards in Saint-Petersburg. The first tanker, Mikhail Ulyanov, has been already delivered to the customer and the second tanker, Mikhail Lavrov, is due to be commissioned in the middle of this year. These vessels’ deadweight is 70 thousand tons.
Sovcomflot is one of the world’s largest maritime shipping companies specializing in natural resources shipping including by Aframax class tankers, petrochemical tankers and ice class tankers. It is a 100% state-owned corporation.
The Company’s earnings under the International Accounting Standards fell by 25% to $1.2 billion in 2009. Net profit almost halved to $217 million.
The Company’s fleet increased by 17 vessels in 2009, including 5 Suezmax-Class tankers and 4 Aframax-Class tankers, to 144 vessels with the total deadweight of 10 million tons.
V.Dmitriev believes that Tractornye Zavody’s debts can be restructured and then Vnesheconombank can finance its investment projects
NOVO-OGAREVO, May 26. /PRIME-TASS/. Vnesheconombank Chairman Vladimir Dmitriev believes that Tractornye Zavody’s debts can be restructured and then Vnesheconombank can finance its investment projects. He told journalists about it after the Bank’s Supervisory Board meeting where they discussed restructuring Tractornye Zavody’s debts.
“In our opinion and in accordance with the decisions taken by our Supervisory Board an issue of restructuring debts to commercial banks would be dealt with appropriately. Taking into account commercial banks’ positions, Vnesheconombank considers it possible to restructure the corporation’s debts and provide funds for implementing the corporation’s investment projects”, said V.Dmitriev