Vnesheconombank’s Supervisory Board Meets in Regular Session

Opening remarks by Dmitry Medvedev:

We are having a regular meeting of Vnesheconombank’s Supervisory Board today, rather an important meeting.

To begin with, last week’s meeting of the Presidential Council for Strategic Development and Priority Projects dealt with involving state corporations in efforts to achieve the national development goals. The President spoke about this. The colleagues also discussed this topic. Today we will discuss Vnesheconombank’s role in tackling these issues.

This makes it necessary that all development institutions whose formation used Vnesheconombank’s resources or participation should work closely with one another. This applies to all entities. It is important that, in the current configuration, they should act as one, providing support for investment projects that are high on the agenda for the country’s development.

There are also proposals to improve the efficiency of the entire system of development institutions and the coordinating role of Vnesheconombank in this context. This concerns modern platform solutions that will ensure the achievement of results horizontally.

For its part, the Government will continue to provide Vnesheconombank with the necessary support. In this respect, this meeting is key to Vnesheconombank’s activities. The latest meeting of the Government approved amendments to the budget of this year. The point is that Vnesheconombank will additionally receive money to pay some expenses of servicing its foreign loans. In addition, within five years, Vnesheconombank will be able to participate in development projects worth 3 trillion roubles, and in partnership with commercial banks, even greater investments can be made in the national economy, maybe three or four times as much as the initial amount, and this will be done on a repayable financing basis.

To improve Vnesheconombank’s efficiency, it is necessary to reinforce its financial model. This concerns the long-term settlement of its external debt. It is intended that 600 billion roubles in subsidies will be used for this purpose before 2024. Furthermore, an approach was developed to providing 300 billion roubles for Vnesheconombank’s additional capitalisation through a new mechanism, so-called “approved capital”. This is the part of the share capital that can be provided when investment resources are required. This model is not yet specified in our legislation, which is why the Ministry of Finance prepared legislative amendments.

I have just signed the decision on an agreement with Vnesheconombank to provide federal subsidies in the form of property contributions to pay some expenses associated with its obligations for foreign loans. Therefore, I would like to ask that this ordinance of the Government should begin to be implemented in the near future.

There is another proposal; at first glance, it is of formal but, anyway, rather important nature. This concerns the name of Vnesheconombank. The proposed name is State Corporation “National Development Institution VEB.RF”. It is not simply a matter of renaming the organisation; this reflects the role of Vnesheconombank (in fact, Vnesheconombank is primarily a development institution rather than a bank) and the tasks assigned by the President and the Government to Vnesheconombank.

We will consider the entire package of initiatives at the next meeting of the Government in order to continue with this work at the State Duma.

As usual, specific investment projects are on the agenda. For instance, the construction of two Aframax large oil tankers at the Zvezda shipyard. They use NGV fuel and meet the strictest environmental requirements of international conventions. In fact, this establishes a new standard of safety and quality in the global shipbuilding industry. This is an example of a modern approach to shipbuilding.

I hope that we will be able to compete with leading shipbuilding countries in this area and take the lead in forming promising international transport corridors. Vnesheconombank is to invest about 12 billion roubles in the project.

A whole range of other decisions also needs to be considered. Let’s get started.