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
Russian Prime Minister V.V. Putin Conducts a Meeting of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ Supervisory Board
As V.V. Putin said at the meeting that the Bank for Development was one of the most important participants in implementing the Government’s crisis management measures and made it possible to provide urgent assistance to the banking sector, the stock market and system-forming enterprises of the real economy. The Prime Minister also added that Vnesheconombank did its best to help its borrowers by extending balanced interest rates on credits, restructured former debts if required and acted guided by long-term objectives of Russia’s economic development.
V.V. Putin’s Opening Address
Esteemed Colleagues, today we’ll hear out Vnesheconombank’s report for 2009, approve its budget parameters for 2010 and consider a number of projects in which Vnesheconombank participates.
I’d like to say that in 2009, the Bank for Development was one of the most important participants in implementing the Russian Government’s crisis management measures, made it possible to provide urgent assistance to the banking sector, the stock market and system-forming enterprises of the real economy. The Bank’s employees performed this intensive work professionally. They carried out decisions efficiently and timely and provided the Government with considerable expert support.
Many measures carried out with the Bank’s assistance have already achieved their objectives and have been suspended and all the funds committed by the state have been returned in full. For example, VEB has already returned 175 billion rubles to the National Wealth Fund. The Bank used the funds to support the Russian securities market in the most difficult period in autumn of 2008, and in doing so it paid interest on them to the federal budget.
Additional incomes from these transactions in the amount of 54.7 billion rubles would be largely used to implement the plan that we announced under the affordable mortgage lending program.
The program aimed at refinancing Russian companies’ debts to foreign creditors was also carried out in accordance with the existing plans. I’d like to remind you that we had performed this work in order to prevent Russian companies’ strategic assets from being diverted to foreign financial institutions due to refinancing problems under the conditions of the global financial and economic crisis. Well, then, the borrowers have already returned 4 billion rubles to VEB out of more than 11 billion they had received.
In general, VEB is taking an active part in stabilizing the banking system. The total amount of subordinated loans extended by the Bank of Development to other credit institutions was 404 billion rubles. Thanks to these loans, commercial banks received additional resources for financing the real economy.
Moreover, Svyaz-Bank’s and Globex Bank’s solvency was restored. The banks were placed under VEB’s control when they were virtually in a state of bankruptcy. At present, Vnesheconombank’s specialists are implementing strategies of their development. Specifically, today we are going to be told about the choice of a partner bank for a new project aimed at establishing a Postal Bank on the basis of Svyaz-Bank jointly with the Post of Russia.
Vnesheconombank participated directly in the financial restructuring of a number of major companies such as the United Aircraft Building Corporation and the Amurmetall Plant. VEB contributed 21 billion rubles to the United Aircraft Building Corporation’s charter capital and became an owner of 11% of its shares. And in December of 2009, an Agreement was signed on financing the Amurmetall plant for an amount of 2.2 billion rubles. The first tranche of 400 million rubles has been already transferred.
And I’d like also to say that despite the additional workload associated with crisis management measures Vnesheconombank carried on undertaking its core activity as a Bank for Development.
The amount of newly extended credits to the real economy was 123 billion rubles. The Bank extended guarantees worth 34 billion rubles under the innovative products support program. In 2009, 40 billion rubles were committed to small and medium-sized enterprises.
VEB started to finance such meaningful projects as the reconstruction of the Koltsovo airport in Yekaterinburg, the construction of an export terminal for coal transportation in the port of Vanino in the Far East and the construction of the Urengoy Electric Power Station in the Tyumen region.
Vnesheconombank is taking an active part in financing Olympic facilities.
Another important point to mention is that Vnesheconombank did its best to help its borrowers by extending balanced interest rates on credits, restructuring former debts if required and acted guided by long-term objectives of Russia’s economic development.
In doing so, Vnesheconombank performed pretty well, formed sufficient significant reserves to maintain its financial sustainability. In 2009, the Bank’s net profit amounted to 31 billion rubles. This is quite comparable to our leading credit financial institutions such as, for example, Sberbank.
It’s evident that it’s high time today to boost activities related to post-crisis economic recovery and modernization to support innovations and high-technology exports.
Our today’s agenda includes a number of such issues. In particular, we have to approve the opening of a credit line to finance the construction the Ekibastuz Power Station’s third power unit.
I’d like to stress that VEB’s credit resources in the amount of 12 billion dollars would be used to purchase domestic power-engineering equipment and it means that we’ll provide the Russian machine-building complex with guaranteed orders.
Moreover, the implementation of this project would help to reintegrate the energy systems of Northern Kazakhstan and Russia’s Southern Siberia and create additional opportunities for these regions’ comprehensive development.
Our next investment project is aimed at constructing a polypropylene manufacturing complex in Tobolsk. This is a large-scale strategic complex influencing directly the future of our chemical industry by raising its technological level and expanding opportunities for deep processing of raw materials.
We’ll also discuss the strategy of Vnesheconombank’s participation in upgrading the Sheremetjevo Airport.
Let’s get started with our work.
On Decisions made by Vnesheconombank’s Supervisory Board
VEB expects net profit in 2010 of about 20 billion rubles
Moscow, March 31, INTERFAX – VEB expects net profit in 2010 of about 20 billion rubles under Russian accounting standards, VEB Chairman Vladimir Dmitriev said following a meeting of the Bank’s Supervisory Board.
Moreover, the Supervisory Board approved opening a 12-billion ruble credit line for the Ekibastuz State District Power Station to support Russian exports of power engineering equipment.
Vnesheconombank selects partners for establishing a Postal Bank on the basis of Svyaz-Bank
NOVO-OGAREVO, March 31, /PRIME-TASS/. Vnesheconombank has selected partners for establishing a Postal Bank on the basis of Svyaz-Bank (SVZ01), Vnesheconombank Chairman said following a meeting of the Bank’s Supervisory Board.
According to him, Vnesheconombank has selected UniCredit Bank, Russian Standard Bank, Nomos-Bank (NMOS03) along with HomeCredit Bank to further participate in this project.
V.Dmitriev said that within a period of 3 months a financial model for creating a Postal Bank would be provided and Vnesheconombank would decide on its main partner in implementing this project.
On approving Vnesheconombank’s participation in the construction of a polypropylene complex in Tobolsk
Moscow. March 31. INTERFAX – VEB’s Supervisory Board approved on Wednesday an investment application for constructing a polypropylene production complex in Tobolsk, VEB Chairman Vladimir Dmitriev told journalists about it.
According to him, the total amount of financing the program of constructing an associated petroleum gas processing gas-chemical plant would be 1.5 billion dollars.
Speaking about this complex earlier, Russian Prime Minister Putin said that “it was a major strategic project directly influencing the future of our chemical industry, increasing its technological level and boosting the potential for deep processing of raw materials”.
On making a decision on centralized management of Terminal D in Sheremetjevo and creating a single operator
NOVO-OGAREVO. March31. /PRIME-TASS/. Vnesheconombank’s Supervisory Board made a decision to centralize the management of terminal D in the Sheremetjevo airport and create a single operator. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it following a meeting of VEB’s Supervisory Board.
He said that Vnesheconombank would participate in financing the creation of a major hub.
V.Dmitriev added that consultants would determine a model of unifying the existing legal entities involved in the management and that a single operator would be created to be responsible for managing Terminal D and the Sheremetjevo airport.
V.Dmitriev added that the financial model examined preliminarily gave us real confidence that the current debt of 1.5 billion would be serviced and repaid.
He added that a consultant to assist in determining a financial unification model has not been identified.
Answering a question if VEB would be able to get a stake in exchange for debts in Sheremetjevo V.Dmitriev said that they were not discussing this issue for the time being. In his opinion the debt could be restructured but this possibility would be considered in the course of working out a financial unification model.
VEB is close to signing an agreement on restructuring debts of Tractornye Zavody Corporation.
NOVO-OGAREVO, March 31. /PRIME-TASS/. Vnesheconombank is close to signing an agreement on restructuring debts of Tractornye Zavody Corporation. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it following a meeting of VEB’s Supervisory Board.
He also added that today Vnesheconombank’s Supervisory Board approved its participation in the toll motorway Moscow – St. Petersburg (section 15-58 km) construction project. According to him, VEB will participate in this project together with Sberbank (SBER), both banks’ stakes in this project are equal.