Today, the House of the Government of the Russian Federation hosted a meeting of Vnesheconombank’s Supervisory Board. The meeting was chaired by the Russian Prime Minister Dmitry Medvedev. The Supervisory Board reviewed VEB’s performance in 2016 and addressed funding for the Bank’s investment and export projects.
In his opening speech, the Prime Minister said, “Recently, the Government has taken a number of decisions to revamp and modernize the VEB Group. We expect that it would help us accomplish our prime objective, i.e. to make VEB efficiently operate as a national development institution, and the most important one at that. This involves long-term projects in manufacturing, power industry, transport, innovation, and small business - projects designed to improve the labour market environment and, of course, boost our exports. Last year, the Bank contributed to delivering almost one hundred and fifty such projects. It’s worth noting that, even despite the challenges of liquidity issues and distressed assets, not only has the Bank successfully completed ongoing projects but also launched new ones. Today, the Bank’s loan portfolio exceeds one trillion rubles.”
The Supervisory Board considered a loan to VEB-Leasing (VEB Group) to finance the delivery of twenty new Sukhoi Superjet 100 aircrafts to be leased to Aeroflot. The loan amounts to USD 700,920,000. Each plane will be leased for twelve years. VEB-Leasing will deliver the first aircraft as early as summer 2017.
The new airliners will make flights to destinations in Russia, Europe and the CIS. VEB’s Strategy views the aviation industry as a key investment priority.
Yet another issue on the Supervisory Board’s agenda is the opening of the Bank’s representative office in Abu-Dhabi, UAE. VEB has been very active in attracting investors from the Middle East to the Russian economy and promoting Russian exports in the region.
Furthermore, the Supervisory Board considered debt restructuring for a number of projects. The Supervisory Board approved a change of the first principal repayment date for Angstrem-T and debt restructuring terms and conditions for Elgaugol. The Supervisory Board also made a decision to bring Vnesheconombank’s Deputy Chairman Pyotr Zolotarev onto the Management Board. His responsibility will be to coordinate the bank business units’ activities in strategic investment planning and structuring, restructuring of assets, and expert analytics for industry business solutions. Tatyana Sakharova was dismissed from the post of Member of Vnesheconombank’s Management Board.
The Supervisory Board agreed on the appointment of Kirill Bulatov as Director General of VEB-Innovations. VEB Innovations’ mission is to ensure a qualitatively new approach and to provide a major platform for the identification and selection of unique and much-needed projects for the Russian economy, with funding not to be confined to lending.