Vnesheconombank and the Development Bank of Mongolia have entered into two credit facility agreements for a total of 8.4 million euros to finance an export project to supply Russian-made farming equipment to Mongolia, with the first disbursement of 5.2 million euros.
The credit facility agreements were signed on behalf of Vnesheconombank by its Deputy Chairman Daniil Algulyan and on behalf of the Development Bank of Mongolia by its First Deputy Chief Executive Officer Chuluunbat Enkhbat.
The export project involves Russia’s leading suppliers of farming equipment, such as Rostselmash, Klever, Voronezhselmash, and Veles. Mongolia is to receive as many as 240 units of new farming equipment, including combine harvesters, energy-efficient tractors, self-propelled mowers etc.
The transaction is part of ongoing intergovernmental cooperation in agriculture between the Russian Federation and Mongolia. A similar transaction was previously completed by Vnesheconombank in collaboration with the Development Bank of Mongolia in 2017.
The Development Bank of Mongolia was established in 2011 pursuant to a resolution of the Government of Mongolia. The sole shareholder is the Government of Mongolia. The Bank’s activities are governed by the Law on the Development Bank of Mongolia. The Bank focuses on financing for development projects of commercial and social value.