V.V.Putin’s Opening Address:
Good afternoon esteemed colleagues. You know that today a passenger plane has crashed near Tyumen killing tens of people. Before starting our work today I’d like us to observe a moment of silence to honor those killed. I’d like to ask authorities and once more the Ministry of Transport and the Ministry of Health and Social Development to do their utmost to help families of those killed and all those injured.
Today, we’ll discuss the Bank’s performance, its objectives and plans for the future.
As far as the Bank’s performance is concerned, I’d like to highlight a special role Vnesheconombank played during the economic crisis: as part of crisis management measures VEB extended subordinated loans worth 400 billion rubles to Russia’s banking institutions and this made it possible to significantly improve the liquidity situation. The Bank provided 175 billion rubles to stabilize the national stock market. I’d like to stress that the Bank as I already repeatedly mentioned, returned all the funds to the Finance Ministry and it returned them with a profit from accrued interest in the amount of 13 billion rubles thus paying this sum to state coffers.
The Bank’s assistance to enterprises operating in the real economy amounted to 300 billion rubles and most importantly, VEB continued to play a systemic role as a bank for development.
In actual fact, Vnesheconombank has become an important integrated instrument for the development of the Russian economy. In the past four years VEB has significantly increased its participation in funding large-scale investment projects and they, as we can see, create new jobs and develop new technologies. VEB’s loan portfolio increased by 2.5 times, it’s a very good growth rate. In 2008, it was 190 billion rubles, in 2011; it was 505 billion, more than 505 billion. It’s a very significant amount, tangible for the economy as a whole.
Special priority has always been given to implementing major systemic innovation projects. I’d like to highlight such landmark projects implemented with VEB’s assistance as the largest Russian polypropylene manufacturing integrated facility “Tobolsk-Polymer”, creation of Sukhoi Superjet-100, building the Kaluga automobile cluster, modernization of the Tikhvin railway carriage works, reconstruction of the Khabarovsk refinery. Today, we’ll also discuss several high-technology projects to be partially funded by Vnesheconombank. Here I mean the construction of a liquefied natural gas manufacturing plant in the Tambov region as well as setting up production of photodiode lighting facilities in the special economic zone of Tomsk.
I’d like to stress the fact that in the past years Vnesheconombank participated in creating a principally new instrument for funding comprehensive programs aimed at developing territories of the Russian Federation; Vnesheconombank gives top priority to, namely, the North Caucasus and the Far East. Our today’s agenda includes two such projects – development of the Udokan copper ore deposit in the Zabaikalie Territory and building an innovation construction materials technopark “Kazbek” in the Chechen Republic.
Moreover, Vnesheconombank set up new institutions designed to support and boost the Russian economy’s competitive edge. This year the Russian Direct Investment Fund started to operate. The Fund is intended for increasing the inflow of direct investments into our economy. The Fund started to function pretty actively – new projects are emerging, investments are being raised, the Fund carries on business cooperation on a constant basis with the largest international investors.
I can’t help mentioning activity related to insuring our export credits. It’s a very important, interesting and necessary activity and we have to continue it. I hope that the Agency will be taking a part of financial risks. This is what’s happening now. The Export Credit and Investment Insurance Agency will be responsible for insuring credits for the supply of products to South-East Asia, CIS, Latin America and Africa and for supporting our exporters, producers above all in the non-raw materials sector, that is, mechanical engineering, automotive industry, aviation, radio electronics and chemical industry.
By late 2014, the amount of support for Russian exporters is to be about 500 billion rubles and the proportion of insured non-raw materials exports is to increase from 0.8%, as planned for this year, to 9.7% - almost by 10%. I’d like to mention particularly that assistance will be provided not only to major corporations but also to small and medium-sized enterprises. As early as in 2012, the Agency is to launch a pilot project aimed at insuring small and medium-sized exporter enterprises. By 2014, up to 3 thousand small and medium-sized exporter enterprises are expected to be insured.
Let’s start working.
Origin: Internet-Portal of the Government of the Russian Federation
VEB’s Supervisory Board Gives its Approval for Providing $300 million for the Udokan Initial Stage
NOVO-OGAREVO, April 2 – RIA Novosti. VEB’s Supervisory Board gave its approval on Monday for providing $300 million for preparing project-estimate documentation, developing feasibility study and making advance payments for equipment for the project aimed at developing the Udokan copper ore deposit in the Zabaikalye Territory, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“300 million dollars are to be provided for preparing project-estimate documentation, developing feasibility study, making advance payments related to the start of manufacturing equipment with a long production cycle”, said Dmitriev.
He added that a decision to further fund the project aimed at developing the Udokan deposit, one of the world’s largest copper ore deposit, will be taken on the basis of project documentation.
Dmitriev said that the Udokan copper ore deposit development project is a large-scale project, the total value of which exceeds 5 billion dollars.
According to him the project is to be implemented through engaging state institutions, natural monopolies and regional budget.
According to VEB’s Chairman, after identifying the pattern of the state’s and natural monopolies’ participation in developing the deposit’s infrastructure we can get a general idea and will be able to determine further needs for investments.
The Udokan deposit is one of the world’s largest deposits in terms of copper reserves. It is being developed by state corporation Rostechnologies together with Metalloinvest. As Head of Rostechnologies Sergei Chemezov said, in November of 2011, the partners had made a request to the Premier for arranging project financing through VEB. Chemezov said that they needed about 2 billion dollars for the first stage and that the whole project is preliminarily estimated at 6 billion dollars.
In September of 2011, the Baikal Mining Company (LLC) – an operator of the Udokan deposit signed a Memorandum of Intent with Vnesheconombank and VEB –Engineering, under which the state corporation and its subsidiary are to participate in developing the Udokan deposit. VEB intends to structure the project’s financial part and is ready to subordinate financial resources among other things through establishing a consortium of banks.
A month later in last March, the Baikal Mining Company signed an agreement on cooperation with the Industrial and Commercial Bank of China Ltd (ICBC) in developing the project jointly. Under the agreement ICBC might extend a credit with a possible participation of the export insurance agency Sinosure to the Udokan operator on the terms of project financing.
“At the current stage we are not discussing Chinese partners’ participation. It’s possible as an idea’, commented Dmitriev on Chinese partners’ potential participation in funding the project.
VEB’s Supervisory Board Gives Approval for Funding the Project on the Construction of an LNG Manufacturing Plant in the Tambov Region
NOVO-OGAREVO, April 2 – PRIME. VEB’s Supervisory Board gave its approval for funding project work on the construction of a liquefied natural gas (LNG) manufacturing plant in the Tambov region. The project is being implemented by the Tambov Gas Processing Company (OJSC), Vladimir Dmitriev told journalists.
“The project is worth several billion rubles but now we’ll fund a pre-project stage as well as an order for American equipment to be supplied with the assistance of US Eximbank”, he said.
Dmitriev didn’t specify the amount of financing saying that the project’s total value exceeds 5 billion rubles.
This project’s implementation will make it possible to launch a plant with an annual liquefied natural gas output of 400 thousand tons. It will supply communal services sector, transport and industrial facilities with ecologically clean fuel as well as ensure the creation of its consumption infrastructure. The project’s implementation is expected to mark a key step toward creating an intra-Russian LNG consumption market.
In late January this year, Russian Prime Minister Vladimir Putin visited an exhibition in Tambov. It made available information on the project to construct an LNG plant. Reportedly, the plant will consist of three stages. They started to build the first stage last year. A total amount of investments in the first two stages will be 16 billion rubles. The plant is scheduled to be fully launched by 2016 and it will manufacture more than one million tons of LNG per year. The project’s payback period is eight years. The plant is to supply LNG to enterprises of the Central Federal District.
VEB’s Supervisory Board Gives its Approval for Funding the Creation of a Construction Materials Manufacturing Technopark in Chechnya
Novo-Ogarevo, April 2. INTERFAX-AFI – Vnesheconombank’s Supervisory Board gave its approval for funding a project on the creation of a construction materials Technopark “Kazbek” in the Republic of Chechnya, Vnesheconombank Chairman Vladimir Dmitriev told journalists after a meeting of VEB’s Supervisory Board.
“We discussed issues related to the North-Caucasus region. Here I mean the project to construct a construction materials technopark in the Republic of Chechnya”, he said.
Dmitriev said that VEB was expected to enter into capital of this company. “A transaction provides for VEB to enter into capital of the North Caucasus Development Corporation”, he said stressing that it is an example when the corporation acts not only as a technical consultant but also as an investor.
Moreover, VEB’s Supervisory Board considered a number of projects associated with funding the Olympic projects.
“Today we are discussing projects related to reformatting certain projects to coming up with a universal scheme for preparing projects both in terms of investor commitments and financial leverage”, added VEB’s Chairman. He noted that they also considered responsibility of investors involved in funding the Olympic projects for exceeding these projects’ budgets in the case when it is not related to involvement of organizations responsible for additional work on making preparations for the 2014 Sochi Olympics, for example, such organizations as the International Olympic Committee.
VEB’s Supervisory Board Gives its Approval for Setting up Energy Financial Agency
Novo-Ogarevo. April 2. INTERFAX-AFI – Vnesheconombank’s Supervisory Board gave its approval for setting up a Russian Energy Financial Agency, Vnesheconombank Chairman Vladimir Dmitriev told journalists after a meeting of VEB’s Supervisory Board.
“An important issue that we have discussed today deals with setting up a Russian Energy Financial Agency, an institution to be created by Vnesheconombank and the Russian Energy Agency. This Agency is designed to provide financial and technical support for Russian energy service companies that propose their projects to banks (for financing)”, he said.
Dmitriev explained that this new institution would allow energy service companies to use a support mechanism through which commercial banks will be able to lend to these companies and fund their projects in the field of energy saving and energy efficiency.
VEB Can Enter Foreign Borrowing Market after Publishing its Financial Statements in line with IFRS
Novo-Ogarevo. April 2. INTERFAX-AFI - Vnesheconombank (VEB) still regards foreign borrowing market as attractive and will be able to enter it after publishing its financial statements for 2011 in line with IFRS, Vladimir Dmitriev told journalists after a meeting of VEB’s Supervisory Board.
“Foreign borrowing market is still attractive to us”, he said stressing that it is especially attractive after the successful placement of Russian eurobonds.
Answering a question when VEB can enter foreign borrowing market V.Dmitriev said that it could happen after the Bank prepares audited financial statements for 2011.
VEB’s Supervisory Board Confirms Two New Vnesheconombank Deputy Chairmen
Novo-Ogarevo. April 2. INTERFAX-AFI – Vnesheconombank’s Supervisory Board approved two new Vnesheconombank deputy chairmen at a meeting on Monday, Vnesheconombank Chairman Vladimir Dmitriev told journalists.
“Today we have decided to confirm decisions made earlier by the personnel and remuneration committee on filling vacant positions with two employees working for the Bank for a long time”, he said after a meeting of VEB’s Supervisory Board.
Alexandr Ivanov and Julia Karpova were appointed as new Vnesheconombank Deputy Chairmen.
A.Ivanov is to be responsible for supervising VEB’s entire activities related to raising financial resources on Russian and foreign markets, work with investors, international financial institutions as well as VEB’s activity associated with its participation in such banking consortiums as SCO and BRICS. He will be also responsible for supervising the Bank’s work with the Russian Direct Investment Fund and the Russian Export Credit and Investment Insurance Agency and Macquarie Renaissance Infrastructure Fund, added VEB’s Chairman.
Earlier Petr Fradkov was responsible for raising financial resources on financial markets at VEB.
J.Karpova who has been working for VEB since 1996 is to be responsible for supervising the Bank’s currency and financial operations. Before her appointment as deputy chairman she was in charge of VEB’s Currency and Financial Operations Directorate.
Vladimir Putin's Opening Address
Good afternoon esteemed colleagues. Today we are holding a final meeting of Vnesheconombank’s Supervisory Board in the outgoing year, and I would like first of all to thank the Bank's management and all its employees for their intensive and hard work in the outgoing year.. A great deal has been accomplished almost without fail. The scale of the work is impressive. I very much hope that the Bank will go on operating in a highly professional way..
We face major challenges of modernizing our economy and making it more competitive and innovative. There are many challenges involved in developing territories. Vnesheconombank is actively working in practically all these areas.
I must say that VEB's loan portfolio has increased by almost 40% in the first eleven months of this year as a development institution - not just as a rank and file financial institution.
Moreover, Vnesheconombank is acquiring and has already practically acquired new instruments for achieving the tasks assigned to it. I mean above all the fact that the management company of the Russian Direct Investment Fund has started operating. It has been created quite recently, but the management company has projects worth 180 billion rubles in its loan portfolio. This is no mean achievement.
Esteemed colleagues, despite well-known difficulties and troubling developments in the world economy, and they are indeed alarming, some complicated processes are also taking place in advanced market economies and some countries are already in recession, that is, their economies have experienced a contraction in GDP for three consecutive months, and there are gloomy forecasts for some euro-zone countries and the States (things have improved a bit there, but on the whole the problems persist) I would like to note that the Direct Investment Fund we have set up may be very much needed because there are not many promising and reliable projects in the world, but we have some. Global investment funds have considerable resources: they are looking for places to spend these resources. As you know, most recently I’ve been at the launch of the Kyzyl-Kuragino railway. Here we have an example of such a project: huge deposits, top quality coal and an absolutely reliable sales market. There are not many such projects in the world, and it is not the only one in Russia. So, I would like you to actively launch such projects and to work more energetically with our partners in the Investment Fund. Step up your efforts! I am sure that we won’t even have to use our reserves and budget resources. Why should we if those who have the money are looking for projects to invest in and we have them? All we need is to work more actively in this direction.
The North Caucasus Development Corporation, set up under your Bank's auspices, has started operating. The Russian Export Credit and Investment Insurance Agency also faces major tasks. We expect the Agency to take energetic steps to support our enterprises, above all of course, those in high-tech sectors. That is what it was created for. Oil and gas workers and metallurgists have their niches in world markets. We need to support high-tech exports.
I would like to stress once again that the tasks aimed at creating points of growth and supporting innovations are linked to supporting exports. I expect VEB’s team to go on working efficiently and consistently.
Now I’d like to say a few words about the current agenda. I see here some interesting projects that stand out not only in terms of their scale, but are in my opinion potentially very useful for improving our economy. The first of these is the project to develop the potassium and manganese salt deposits and to build a mining and concentration plant in the Perm Territory. Why did it catch my attention? Not only because VEB is committed to investing heavily in it (more than 40 billion rubles), but because it is a step that should eventually lead to demonopolization of that sector of our economy. Demonopolization is very important. This is not to say that we should eliminate someone, on the contrary, when a competitive environment is created, the situation improves and prices for a needed and important agricultural product are stabilize, the export potential increases, and in this case VEB does not only enter the capital worth 6.7 billion rubles, but also extends a 33 billion ruble credit. That is a huge amount. The capacity of the mining and concentration plant will be about 2 million tones of potassium chloride, of which 600,000 tonnes should be sold on the domestic market. I am sure it will give an extra boost to our agro-industrial complex.
Second, a 25 billion-ruble credit line is to be opened for the construction of the middle segment of the Western High-Speed Diameter motorway in St Petersburg. It is a very important project for the northwest of our country, not only for the city of five million but for the entire northwest. There’s no doubt, it will mark a step forward in developing our infrastructure and in giving a second wind to this part of our country, giving it a new character that is in line with European standards, and it will free this city of five million people from an excessive number of heavy vehicles, many of which still pass through central parts of the city even after the ring road around Petersburg was built. The Western High-Speed Diameter is very important for the city.
I was in Petersburg on December 23 attending the ceremony of signing relevant documents. I would like to thank all those who worked actively in order to draw one more line and create necessary conditions for the work to start.
Finally, a 2.5 billion-ruble credit is to be extended for the "Film Club: Culture, Education, Communications" project involving the creation of a cluster of such clubs within the KinoCity project. At least 250 multimedia cinemas are to be built, above all in small and medium-sized towns. This kind of social infrastructure is in short supply in our small and medium-sized towns, and we should do our best to launch it. We have discussed it more than once. I know some agencies have their own ideas on that score, but I would like to stress that we must support this kind of projects. Such clubs are unevenly distributed throughout our country and they need to be supported. The situation is more or less normal in cities with a population of over a million, while in small and medium-sized cities the number of such clubs is diminishing. They must be supported.
Let's start our work.
Origin: Internet-Portal of the Government of the Russian Federation
