V.V Putin’s Opening Address:
Good evening esteemed colleagues,
Today we are to discuss Vnesheconombank’s mid-term strategy up to the year 2016. I’d like to note that the Bank’s business experience as a development institution was taken into account when the strategy was worked out. It is this line of the Bank’s activity that should be enhanced in the coming years. VEB must play a more active role in the investment policy, act as a powerful financial driving force of projects that are designed to change the structure of the Russian economy, make it more sustainable against any external shocks. Top priority should be certainly given to supporting high-technology and infrastructure programs, projects that create new quality jobs.
I’d like to stress that even now VEB is highly instrumental in modernizing the Russian economy. For example, the Bank’s loan portfolio as a bank for development increased from early 2009 by more than 80%. And above all this increase was achieved by funding key industrial enterprises, the high-technology sector, transport as well as the most important construction projects and facilities in electronics, infrastructure and transport mechanical engineering.
I’d like to list objectives VEB will have to address in the coming four years. First, VEB is supposed to invest about 2 trillion rubles in the Russian economy till the end of 2015. These are significant resources – about 2.4% of GDP. The Bank for Development will have to more than double its loan portfolio and the proportion of high-technology and innovations projects should increase from 15 to 20% in the total financing amount.
The Bank’s cooperation with the Agency for Strategic Initiatives will become an important line of its innovative activity. Here, VEB can act as a consultant, provide qualified expert support in selecting projects to be offered by this Agency.
Second, the Bank should increase by many times its support for high-technology exports. We should realize the Bank’s full potential to help our companies to tap into the most advanced, promising markets. By 2016, the amount of support for our exporters, their innovative technological products should be about 90 billion rubles.
In this respect, today we have to approve the Charter of the Russian Export Credit and Investment Insurance Agency and form its governance bodies. The Agency’s charter capital is 30 billion rubles. This new institution will take some of financial risks, help our exporters to tap into international markets and promote high-technology products and services. We expect the Agency to operate effectively. I hope that as early as this year Russian exporters will be able to get their first contract insured with its assistance.
The third and very important line of activity. I’d like to stress that Vnesheconombank’s strategic priority will be to advance programs aimed at providing support for small and medium-sized enterprises. And at the same time top priority will be given to supporting companies operating in the non-trade sector of the economy, to funding innovation projects associated with creating new production facilities, quality products and technologies. And there is no doubt that the Bank will go on participating in housing programs. VEB has already earmarked up to 250 billion rubles to develop mortgage lending including refinancing of housing credits.
VEB’s Supervisory Board Approves the Bank’s Development Strategy till 2016
Moscow, September 27 – PRIME. VEB’s Supervisory Board approved the development strategy of the Bank for 2011-2015. The strategy will make it possible to make full use of VEB’s instruments as a Bank for Development, VEB Chairman Vladimir Dmitriev told journalists.
“Specifically, the Bank’s loan portfolio is scheduled to amount to 850 billion rubles. VEB Leasing is to conduct leasing transactions for the amount of 150 billion rubles. VEB’s contribution to the development of the Russian economy would amount to more than 2% of GDP”, he said.
According to him the strategy also provides for supporting Russian industrial exports in the amount of about 90 billion rubles till 2016.
“We have approved parameters for conducting transactions on stock markets”, he said.
Dmitriev said that the previous strategy is deemed to have been completed. “Our current strategy aims to fulfill VEB’s potential as a bank for development”, he said adding that in the previous years VEB has failed to achieve this objective in full as it had to carry out crisis management measures in the economy, RIA Novosti reported.
Petr Frakov Appointed as Head of Export Credit and Investment Insurance Agency
Moscow. September 27. INTERFAX- Vnesheconombank’s Supervisory Board approved a charter of the Export Credit and Investment Insurance Agency.
Petr Fradkov was appointed as the Agency’s Director, Vnesheconombank Chairman Vladimir Dmitriev said.
Investments in supporting Russia’s industrial exports are to amount up to 90 billion rubles. Petr Fradkov is appointed as the Agency’s Director, VEB Chairman Vladimir Dmitriev told journalists after the Supervisory Board’s meeting on Tuesday.
VEB Approves Funding of Rusal’s Taishet Plant
MOSCOW, September 27 (Reuter) – VEB’s Supervisory Board approved financing of Rusal’s project on the construction of the Taishet Aluminum Plant in the amount of 40 billion rubles for a period of 15 years, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“All basic parameters have been approved. The funding amount is about 40 billion rubles. The project is to be funded in foreign currency – either in dollars or in euros”, he said after VEB’s Supervisory Board meeting.
VEB is now holding talks on funding the project in full through a credit line of a foreign partner bank.
VEB’s Supervisory Board agreed in principle to fund the project as early as at the beginning of August.
The construction of the Taishet plant started in 2007. During the crisis the project was frozen due to the absence of funds. The construction was renewed and it is now being funded through using Rusal’s own funds.
Depending of the Taishet project’s completion Rusal plans to increase aluminum production to 4.8-4.9 million tons per year against 4.08 million tons in 2010.
VEB’s Supervisory Board Approves Commitment of 39 billion Rubles to Build Sollers-Ford JV
MOSCOW, September 28 – RIA Novosti. Vnesheconombank’s Supervisory Board finally approved extending a 10-year credit worth 39 billion rubles for creating a Sollers-Ford Joint Venture, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“The project’s final version has been presented today with all terms and conditions and with a trilateral agreement (VEB, Ford, and Sollers) with regard to minimizing risks that might emerge upon occurrence of a whole number of circumstances including force major circumstances”, Mr. Dmitriev said.
He said that in the near future the project would be launched.
According to him the credit’s 36 billion rubles will be used for making investments and 3 billion rubles will comprise current assets.
In mid September, at the 10th Investment Forum in Sochi State Corporation Vnesheconombank and OJSC Sollers signed a credit agreement on creating a Sollers-Ford Joint Venture to manufacture commercial cars and all-roaders with a capacity of up to 350 thousand automobiles per year.
In June of 2011, Russian Automobile Company Sollers and American Auto Concern Ford signed an agreement with Vnesheconombank on extending a credit to fund the creation of a joint venture to manufacture automobiles in Russia.
VEB Intends to Use 10% of its Profit to Capitalize SME Bank
MOSCOW, September 28 – RIA Novosti. Vnesheconombank intends to use 10% of its profit annually to capitalize its subsidiary OJSC SME Bank, earlier the Russian Development Bank, Vnesheconombank Chairman Vladimir Dmitriev told journalists on Tuesday.
He said that originally they planned to use 10 billion rubles from the federal budget annually to capitalize this bank. “But there are budget constraints that make it impossible to increase the bank’s capitalization through using budgetary funds”, said Mr. Dmitriev.
Nevertheless, he said that it was necessary to additionally capitalize SME Bank to bring the amount of funds intended for supporting small and medium-sized business to 150 billion rubles by late 2015.
Mr. Dmitriev didn’t rule out that in case of improved world financial conditions and Russia’s improved budget it would be possible to raise a question of supporting the bank through using budgetary funds in the amounts planned earlier (10 billion rubles per year).
VEB’s Supervisory Board Approves Ernst & Young as Auditor of the Bank’s Financial Statements for 2011
MOSCOW, September 27 – PRIME. Vnesheconombank’s Supervisory Board approved Britain’s Auditing Company Ernst & Young as auditor of the State Corporation’s financial statements for 2011, Vnesheconombank Chairman Vladimir Dmitriev told journalists on Tuesday.
“We approved Ernst & Young as VEB’s auditor” said Mr. Dmitriev after the Supervisory Board meeting.
A tender for conducting a mandatory annual audit of the State Corporation’s financial statements for 2011 was announced on July 19, the envelopes with bids were opened on August 24. Russian subsidiary of Britain’s company – LLC Ernst and Young was declared the winner of the tender.
The following three auditing companies were allowed to participate in the tender: CJSC BDO with a bid price of 4.928 million rubles minus VAT, CJSC KPMG (a bid price of 8 million rubles minus VAT) and LLC Ernst and Young (a bid price of 1.1 million rubles minus VAT, RIA Novosti reported.
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