At its meeting on 18 May 2017, the Supervisory Board of Vnesheconombank considered extending a loan to AO Transholdleasing to deliver a project on the acquisition and leasing of subway cars to the Moscow Metro under a life cycle contract (LCC-2) using resources from the National Wealth Fund (NWF). The project provides for the delivery of 768 subway cars manufactured at OAO Metrovagonmash to the Moscow Metro in 2017-2020. The contractor will also provide maintenance services to the subway cars throughout their life cycle. The total value of the project is RUB 63.5 billion, of which RUB 38.3 billion will be financed out of the funds raised from NWF. The funds shall be repaid by the end of 2035. The project is to be carried out as part of the Moscow Government programme designed to renovate the obsolete electric train fleet on the operational lines of the Moscow Metro and develop the metro infrastructure to ensure high standards and top-flight service for Moscow passengers.
Using the NWF funds deposited with Vnesheconombank, the Bank already extended financing for the first project on subway cars under a similar life cycle contract at the end of 2016.
The Supervisory Board also considered extending a RUB 14 billion loan to AO AHML. The bulk of the funds will be allocated to finance rental market development programmes.
Furthermore, the Supervisory Board considered setting up OOO VEB Innovations to promote the National Technological Initiative (NTI) and digital economy projects, attract co-investors, and facilitate the entry of Russian innovation companies into the global market. Transformation of the subsidiary into a limited liability company is primarily attributed to VEB’s focus on rapid development and innovative areas, including blockchain, marketplace, and quantum and convergent technologies. VEB Innovations have already selected three ambitious projects eligible for financing, all of which fall under the following NTI categories: AeroNet (distributed unmanned aerial vehicle systems), EnergyNet (distributed power generation from personal power to smart grid and smart city), and HealthNet (personalized medicine).
Furthermore, a decision was taken to establish an audit committee under the auspices of the Supervisory Board. The committee is designed to help the Bank’s supreme collective body to efficiently exercise control over VEB’s financial and business operations. The Russian Minister of Finance Anton Siluanov is to head the committee, which will comprise members of the VEB Supervisory Board, federal government officials, and expert community representatives.
The Supervisory Board adopted a number of corporate decisions, in particular, allowing an increase in the authorized capital of the Russian Export Center (REC, VEB Group) with a view of developing its regional and global network and boosting lending to exporters. It has been also decided to expand REC’s authority in terms of subsidizing the participation of Russian manufacturers in foreign exhibitions and delivering strategic projects to promote exports, specifically, the national export brand “Made in Russia”.
Still another item on the agenda was Vnesheconombank’s corporate-wide performance ratio system for the year 2017. Presented for approval by the Supervisory Board was a list of KPIs together with their weighting factors, and the method for determining and assessment to be used for end-of-year bonus payments to VEB employees. When developing its KPI system, the Bank was guided by basic approaches to the identification of KPI lists and weighting factors approved by the Supervisory Board in March 2017.
And, finally, the Supervisory Board addressed a number of personnel issues. A decision was taken to appoint Svetlana Yachevskaya as Deputy Chairman of Vnesheconombank – Member of the Management Board. Presently, Svetlana Yachevskaya holds the office of Director of Legal Department at the Russian Ministry of Finance. At Vnesheconombank, Svetlana will coordinate operations related to the functions of the agent for the Government of the Russian Federation, internal and sovereign debt, financial assets of the Russian Federation, and legal groundwork for financial asset management.
Vladimir Shaprinskiy was relieved from the office of Member of the Management Board but retained his position as Chief Accountant of Vnesheconombank.
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In conjunction with the St.-Petersburg International Economic Forum 2017, Vnesheconombank will introduce its principal focus areas for promoting Russian innovations.
In compliance with its Strategy 2021, VEB intends in the coming years to increase its participation in rapid-development projects by encouraging investments in those innovative areas where Russia can become a global leader. These include blockchain, quantum and convergent technologies, etc.
At SPIEF’17, VEB holds a panel discussion ‘The Explosive Impact of Blockchain Technology’, which is to take place on June 2 from 9:45 to 11:00. Intended participants include First Deputy Prime Minister Igor Shuvalov, Chairman of Vnesheconombank Sergey Gorkov, Founder of Etherum Vitalik Buterin, Founder and CEO of BitFury Group Valery Vavilov, and Co-Director and President of The M&A Advisors David Fergusson.
The participants will discuss the prospects and risks of blockchain adoption in Russia, the practical potential of the technology in terms of business tasks and the public governance system.
“VEB has everything it takes to fill the niche of a bank for development of Russian innovations. We are ready to finance innovation and NTI projects at the start-up stage of production and service development, as well as support such projects at the stage of business scale-up. This is exactly the idea we intend to elaborate at the forthcoming forum. Blockchain will be the primary focus of our discussion, which is to comprise global leaders and industry experts. Blockchain can substantially improve the quality of governance both in business and public agencies”, Chairman of Vnesheconombank Sergey Gorkov said.
VEB’s stand will have the ‘Investment in Russia’s Future’ display, including innovative solutions and technologies of Russian companies. In particular, VEB’s partners will present Russian inventions in space technologies, medical science, robotics, thin-film materials, communications, etc.
The St.-Petersburg International Economic Forum (SPIEF) has been held since 1997. Since 2006, it has been held under the auspices of the President of the Russian Federation, who has also attended each event. Over the past period, the Forum has become a leading global platform for representatives of the business community to meet and discuss key economic issues facing Russia, emerging markets, and the world as a whole.
The 20th St.-Petersburg International Economic Forum will take place from 1 to 3 June 2017. It has a much more eventful programme as compared to previous years: even now, it includes 108 business events.
The programme is based on four pillars. The first block, Dynamics of the Global Economy, focuses on the global agenda and economy. The second one is devoted to the Russian economic agenda. The third block comprises sessions on new technologies, which are already changing the ordinary course of life. And the last block views human capital as the key vector of development.
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E-mail: press@veb.ru
