Director of Vnesheconombank’s Legal Directorate, Igor Krasnov spoke at the XIII annual business law forum in Russia (Moscow, 20-21 April 2017).
Igor Krasnov participated in a plenary session entitled “Dialog between Lawyers and Authorities and Business”. The contributors discussed the challenges that the legal division heads should be prepared to face, including the sequence of the reform procedures and the evolution of the judicial system. At the session, governmental, business, and legal representatives debated over possible developments upon which to base strategic decision-making and practical conclusions.
Igor Krasnov has a deep background in banking and financial legislation, earning him a reputation as an influential member of the professional legal community. VEB’s Legal Directorate staff are vigorously striving to improve Russian financial legislation, while at the same time working on statutory documents regulating the activities of Vnesheconombank.
In his speech “Playing with Forecasts. Proactive Participation of Business in Lawmaking”, Igor Krasnov discussed efforts to introduce amendments to individual legal acts of the Russian Federation involving syndicated loan transactions. As VEB has stated, the Russian syndication market lags behind comparable countries, and VEB is already playing an important role in unlocking the potential of syndication.
“The introduction of a general rule for syndicated loans is a highly sought-after innovation in present-day banking practice,” VEB’s Legal Directorate Head emphasized. A proposal was made for a new supplemental article to the Federal Law “On Banks and Banking Activity”, entitled the “Syndicated Loan”, which entails that the parties to a syndicate may include credit institutions, Vnesheconombank, foreign banks, as well as foreign legal entities operating in the sphere of financial markets, and international financial organizations.
The goal of the project is to resolve legal discrepancies in the regulation of syndicated loan agreements.
Igor Krasnov focused mostly on making changes to the Federal Law on the Bank for Development itself (No. 82-FZ). He identified the following directives in his speech:
- updating the Bank's operational priorities in view of the mission, the targeted role in the Russian economy and VEB’s main investment areas;
- defining VEB’s functions as a party to syndicated lending, partnership finance (Islamic banking), banking support for the Bank's projects, developing a basis for setting up a project financing factory under the aegis of VEB;
- clarifying how to support Russian industrial exports and promote the access of Russian products to foreign markets;
- authorizing Vnesheconombank for project support functions in the high-tech sphere, including the support of NTI projects;
- defining the Bank’s support for the production of civil and dual-purpose products by defense industry manufacturers;
- shaping up VEB's new expert analytics in order to identify the factors that ensure the growth of the Russian economy, searching for projects and their structuring, utilizing industry expertise, as well as acting as an investment and financial consultant (sectoral business solutions).
The Forum’s sessions were also attended by Director of Vnesheconombank's Department of Legal Protection Vladimir Nazarenko. He spoke with the event’s attendees about the initiation of bankruptcy proceedings by a credit institution without judicial resolution. At each stage, the department’s staff take available measures to address problems associated with project implementation, offer project participants their solutions, and develop strategies for each participant to deal with bad debt.