V.V Putin’s Opening Address:
Good evening esteemed colleagues,
Today, we have a wide agenda. We are to approve Vnesheconombank’s annual report for the year 2010 and consider a number of large-scale projects in the financing of which Vnesheconombank participates.
I would like to say that Vnesheconombank’s activity priorities changed last year. The general economic stabilization and the start of the post-crisis period allowed the Bank to switch from taking emergency measures for providing support for various economic sectors and individual enterprises to accomplishing long-term objectives. Here I mean above all programs aimed at modernizing enterprises, quality infrastructure upgrading and of course supporting small and medium-sized enterprises.
Last year, the entire amount of resources allocated by Vnesheconombank for technological, infrastructure and development projects increased by a fourth to 350 billion rubles. The Bank extended funds to finance the construction of the Boguchan hydroelectric power station, the Urengoy power station, a new passenger terminal in the Vladivostok international airport, the construction of such ice-class tankers as Kirill Lavrov and Mikhail Uljanov and many other projects.
The Bank’s portfolio of loans aimed at supporting the export of Russian high-technology products increased almost to 60 billion rubles. VEB earmarked up to 250 billion rubles for developing mortgage lending including refinancing of housing credits. VEB’s participation in these programs ought to secure a trend towards reducing rates on mortgage credits and expanding mortgage lending in our country as a whole.
As of January 1, 2011, the amount of VEB’s funds allocated through its subsidiary banks to implement programs of supporting small and medium-sized enterprises that I have already mentioned was about 50 billion rubles. I would like you to go ahead with giving high priority to these issues. I’d like to remind you that we are seeking to increase Vnesheconombank’s financial support for small and medium-sized enterprises to 250 billion rubles by the year 2015.
In general, I would like to thank VEB’s entire team for their active efforts last year. In my opinion, the Bank achieved positive results, enhanced its standing as a key development institution in Russia. And its net profit amounted to 28 billion rubles in 2010.
And now I’d like to say a few words about our immediate tasks.
Vnesheconombank has already gained good experience in the regions and we should step up our efforts at the regional level. In order to fund projects in the Northern Caucasus, VEB founded the Northern Caucasus Development Corporation in November of 2010. The Corporation is already selecting potential facilities and programs for financing.
Today, we are to approve a decision to open a credit line to finance the construction of the Arkhyz alpine resort in Karachaevo-Cherkessia. The project provides for the construction of a world-class tourist cluster with modern infrastructure that can host up to 25,000 guests at any one time. We plan to set up a total of six tourist recreational zones in the Northern Caucasus and in the South of Russia. Almost 60 billion rubles are to be allocated from the federal budget to set them up. These facilities are located in Karachaevo-Cherkessia, the Krasnodar Territory and the Republic of Adygea, North Ossetia and Dagestan. I’d like to note that despite considerable funds that we allocate to finance the projects related to the 2014 Sochi Olympics we should not neglect other federal constituent entities as well as for example alpine tourist clusters on the South of our country. Considerable sums of money are allocated for these projects and I believe that it would invigorate the situation in the region, create new jobs and help to boost regional budgetary self-sufficiency.
Undoubtedly, these are complicated, multipurpose projects. We’ll have to address a lot of problems while implementing them. But we are sure that these initiatives would bring tangible results, create new jobs and improve the socio-economic situation in the region as a whole. By the way, our foreign partners are showing more interest in such projects. Have you heard that a joint Russian-French joint venture is being set up to develop the Northern Cau- casian tourist cluster?
Today, we are also to make a decision on establishing the Far Eastern and Baikal Regions Development Fund. As was agreed before, this Fund is going to be Vnesheconombank’s subsidiary company with its headquarters in Khabarovsk I’d like to stress that the Fund is designed not only to implement investment projects but also provide information and image support for the Far Eastern territories to position them as attractive markets for both Russian and foreign investments. This means that the Fund is supposed to be the region’s full-fledged development institution.
I expect that VEB’s prestige will make it possible to engage large Russian and foreign banks and investment companies. Until 2015, at least 70 billion rubles will be allocated to implement the Fund’s projects and the first 5 billion might be allocated as early as this year.
And finally, strenuous efforts are being made now to establish a Strategic Initiatives Agency. The projects submitted to the Bank are currently being discussed by its experts. Final results of the competition to fill the vacancies of the Agency’s Director General and directors responsible for three lines of activity will be soon announced as we agreed before. I think that Vnesheconombank should take an active part in the Agency’s activity and provide it with full support including financial assistance with regard, of course, to those projects that are of interest to the Bank. VEB has already made a decision to grant 100 million rubles to the Agency for it to make necessary arrangements to start its activity. Let’s consider other mechanisms for promoting projects being offered that will be selected and win tenders.
Origin: Internet Portal of the Russian Government
On the Decisions Made By Vnesheconombank’s Supervisory Board
VEB’s Supervisory Board Gives its Approval for Financing the Construction of the Arkhyz Alpine Resort in Karachaevo-Cherkessia
Moscow. July 14. INTERFAX-AFI – Vnesheconombank’s Supervisory Board gave its approval for providing 5 billion rubles for the construction of the first stage of the Arkhyz alpine resort in Karachaevo-Cherkessia, Vnesheconombank Chairman Vladimir Dmitriev told journalists after the Supervisory Board meeting.
“We have discussed the project today and made a positive decision”, he said speaking about funding this project.
V.Dmitriev noted that despite considerable funds are allocated to finance the Olympic facilities other projects should not be ignored.
On Wednesday, VEB’s Supervisory Board also approved a list of Olympic facilities that are funded in line with the decisions taken by VEB’s Supervisory Board in 2009.
V.Dmitriev reminded that at that time a decision was made to fund projects in the ratio of 70% to 30%, that is, Vnesheconombank was responsible for allocating a greater part of funds.
V.Dmitriev added that as to projects that carry increased risk and heavy burdens on investors the said ratio is 90% to 10%, that is, Vnesheconombank is responsible for providing a substantially greater part of funds. Vnesheconombank’s Chairman reminded that the interest rate on credits for these projects is equal to refinancing rate plus 0.4-1.4 of percentage point.
According to V.Dmitriev, the total amount of financing 17 Olympic facilities is 150 billion rubles.
Moreover, on Wednesday VEB’s Supervisory Board considered an issue of VEB’s participation in the financial rehabilitation of Amurmetall and Tractornye Zavody Concern. VEB’s Supervisory Board approved further steps to improve these companies’ activities.
VEB’s Supervisory Board also approved a concept to develop VEB’s Ukrainian subsidiary bank – Prominvestbank.
VEB to Provide 500 Million Rubles to Set Up the Far Eastern and Baikal Regions Development Fund
MOSCOW, July 14. /PRIME/. Vnesheconombank is to provide 500 million rubles to set up the Far Eastern and Baikal Regions Development Fund. Vnesheconombank Chairman Vladimir Dmitriev told journalists about it the day before.
According to him, on Wednesday, VEB’s Supervisory Board made a decision to set up the Fund. It will be VEB’s subsidiary company headquartered in Khabarovsk.
V.Dmitriev said that the Fund would be responsible for working out projects from a concept stage to a stage transparent to investors. And Vnesheconombank is ready to participate in funding projects in the amount of no more than 20 percent of their value. The remaining funds are to be made available by a project’s initiator in the form of its own and borrowed funds, with its own fund being no less than 20 percent of a total investment amount.
“We expect that in 2011 – 2015 VEB’s participation share in financing project might reach up to 70 billion rubles”, said V.Dmitriev.
Vnesheconombank’s Chairman also said that VEB’s Supervisory Board approved the procedure for considering and financing a pre – investment stage of the Skolkovo Fund residents’ investment projects.
V.Dmitriev also said that VEB’s Supervisory Board had given its approval to provide the Strategic Initiatives Agency with a grant worth 100 million rubles for it to be able to start its activity. He also said that a special subdivision was to be set up within Vnesheconombank to coordinate efforts with the Agency to select and fund projects.
Moreover, the Bank’s Supervisory Board approved a concept of developing VEB’s Ukrainian subsidiary bank – Prominvestbank. According to V.Dmitriev, the subsidiary bank would focus on working with companies that form an integral part of cooperation ties between Russia and Ukraine. He explained that he meant companies operating in the power and transport and nuclear power engineering industries as well as in the aircraft and engine construction sectors
V.V. Putin’s opening address
Good afternoon esteemed colleagues.
Let’s remember once again about what we spoke in our report at the State Duma. As you know we spoke about large-scale development programs in the regions, various production sectors, the housing market, the industrial sector, infrastructure, modernization and launching of large-scale projects.
It’s quite evident that Vnesheconombank is supposed to play a key role in implementing all these plans acting as our leading development institution and consulting center and using its credit resources.
We also expect Russia’s Export Credit and Investment Insurance Agency to work effectively. I’d like to remind you that this Agency is being established in the form of a joint stock company with Vnesheconombank’s 100-percent participation. This new agency is designed to assist our exporters in tapping international markets and we should above all support exporters that operate in innovation sectors. The Government considered, prepared and submitted appropriate amendments to legislation to the State Duma.
At the same time, we have to address all organizational issues associated with the operation of the Russian Export Credit and Investment Insurance Agency and prepare a definitive strategy of its activity.
We have also to create additional instruments to raise capital for the Russian economy. It is for this purpose a Russian Fund of Direct Investments is being set up. We should discuss today an issue of establishing a special managing company for this Fund. The Fund will be responsible for raising foreign long-term investments for the Russian economy intended above all for such high-technology sectors (here I mean innovation projects) as power engineering, oil sector, space exploration, pharmaceutics and etc. The Fund’s managing company with a charter capital of 300 million rubles is to be founded by Vnesheconombank. And in its operation the Fund will be able to rely on Vnesheconombank’s financial and expert potential. In my opinion, this approach is bound to establish the Fund’s credibility with the international investment community and create favorable conditions for its start and further operation.
Besides these systems issues, we’ll also discuss a number of other purely production issues and among them I’d like to single out the one of a credit line worth 39 billion rubles intended for creating a joint venture between Ford and our Russian company Sollers that has been operating in the automotive industry for several years. This is a young company but it has been operating for several years and has shown itself to a good advantage. At our request, the company is expanding its production including as we know in the Far East.
I believe that the project in point is a very interesting, much needed initiative. The partnership between Russia’s company Sollers and Ford would make it possible to attract new technologies, significantly increase production facilities of the companies already operating successfully in various regions of the Russian Federation, for example in Tatarstan (the city of Elabuga) and in the Leningrad region. The credit resources we are to make available today will be used to increase production localization. This is fully in line with requirements the Russian Government formulates for our foreign partners. The money is to be used to set up the production of component base on the territory of our country. Suffice it to say that in the future the level of localization at Ford-Sollers joint venture is supposed to reach 60%.
The launch of such a large-scale project is especially important today against the backdrop of the Russian auto market growth. In the first quarter of this year the output of cars in our country increased by 2.2 times. And I’d also like to remind you that we made a decision to additionally fund the car utilization program. All these factors form a good basis for the launch of this new large-scale project.
Let’s get down to work.
On Vnesheconombank’s Supervisory Board Decisions
VEB to start funding the construction of the Olympic Village
Novo-Ogarevo. April 22. INTERFAX – Vnesheconombank is to provide credit resources to fund the construction of the Olympic Village in Sochi, said Vnesheconombank Chairman Vladimir Dmitriev.
He reminded journalists on Friday that a credit line worth about 2 billion rubles to fund this project had already been opened. The funds are intended for performing pre-project work.
“Besides the money we have already provided under the last year’s decision the total amount is 15.5 billion rubles and at our today’s Supervisory Board meeting we made a decision to allocate 3 billion rubles so that we could start full-scale financing after agreeing upon security documents”, said V. Dmitriev after Vnesheconombank’s Supervisory Board meeting on Friday.
According to him the credit is to be extended at a refinancing rate of plus 0.4-1.4%.
Total budget of Ford-Sollers JV project to amount to 75 billion rubles. VEB to allocate 39 billion rubles
NOVO-OGAREVO, April 22 – RIA Novosti. Vnesheconombank is to extend a credit to establish a Ford-Sollers Joint Venture for an amount of 39 billion rubles for a period of 10 years at a refinancing rate of plus 2%, the project’s total budget is 75 billion rubles, Vnesheconombank Chairman Vladimir Dmitriev told journalists after Vnesheconombank’s Supervisory Board meeting.
“The funding provides for building several production facilities in three cities – Naberezhnye Chelny, Elabuga, Vsevolzhsk”, said Dmitriev.
He said that the parties’ participation share in the project to establish a Ford-Sollers Joint Venture is 50 to 50. And the property contribution of both parties is 18 billion rubles.
According to Dmitriev, the project’s implementation will result in building production facilities for manufacturing 350 thousand automobiles per year. Mr. Dmitriev also noted that a domestic competence would be created in engine-building.
VEB’s Chairman said that the project’s implementation would result in forming our own scientific-technical base in Tatarstan. He also stressed that in the course of the project’s implementation budgets of various levels would receive about 39 billion rubles and 3 thousand new jobs would be created.
According to him, in the near future Vnesheconombank intends to sign a memorandum with the project’s participants. The memorandum is to specify investment terms. He noted that the project’s details are being thoroughly studied. Dmitriev said that after completing the preparation of documents, “we would submit finalized financial terms of funding this project to Vnesheconombank’s Supervisory Board”.
Dmitriev also said that this credit should be extended at the most favorable interest rate. “Now we are discussing a refinancing rate of plus 2%”, said Vnesheconombank’s Chairman.
It became known in mid February that the Russian automaker and Italian Concern Fiat terminated their negotiations about establishing a joint venture which could have become the second largest player after AvtoVAZ on the Russian car market. The companies signed a memorandum on establishing a joint venture a year ago and at the beginning of July Sollers submitted an application to VEB for arranging a syndicated loan worth 2.1 billion euros to fund the project. Later on, the parties decided that they would implement their long-term strategies individually.
At the same time, Sollers was not left without a partner, on the same day the company announced the establishment of a joint venture in equal shares with Ford to manufacture and distribute Ford cars on the Russian market.
VEB’s Supervisory Board accepts founding documents from a managing company of a Direct Investments Fund
NOVO-OGAREVO, April 22 – RIA-Novosti. Vnesheconombank’s Supervisory Board accepted founding documents of a managing company of a Sovereign Direct Investments Fund, Vnesheconombank Vladimir Dmitriev told journalists after Vnesheconombank’s Supervisory Board meeting.
“Today we have discussed an issue of establishing a Direct Investments Fund and most importantly, a managing company of this Fund. This managing company is a legal entity - a limited liability company. On the whole, we accepted this institution’s founding documents but they will require some fine tuning”, Mr. Dmitriev told journalists adding that this would be done until this June.
Answering a question about who might be in charge of this institution, Mr. Dmitriev said that they had discussed worthy candidates known to the market.
“I think that in the most immediate future a surname of the managing company’s head will be made public”, said VEB’s Chairman.
A Fund of Direct Investments is scheduled to be established in the form of a closed mutual investment fund. This will be VEB’s 100-percent subsidiary company and its charter capital is to be formed through using federal budgetary funds. Its target amount is to be 10 billion dollars. Russian President Dmitry Medvedev announced an initiative to establish such a fund at the World Economic Forum in Davos.
The Fund will be responsible for raising long-term investments for the Russian economy, above all, for high-technology sectors and innovation projects in such industries as power engineering, the gas sector, pharmaceutics and space exploration.