Assistance in Regional Development
The concept for socio-economic development of the Russian Federation or a period of up to 2020 stipulates that government regional policy is to be aimed at ensuring balanced socio-economic development of Russian constituent entities and reduction in interregional differentiation in the regions’ socio-economic condition and quality of life.
The Russian economy’s sustainability is now to a large extent determined by the government regional development policy. Given the federal budget deficit and regions’ limited capabilities for raising internal and external debt financing the use of long-term investment instruments of national development institutions including those of Vnesheconombank for implementing major regional investment projects is becoming the most important objective of the government regional policy.
Vnesheconombank is making strenuous efforts common to almost all development banks to ensure sustainable comprehensive development of territories. In this respect, Vnesheconombank’s main lines of regional policies are as follows:
- encouraging economic development of Russian constituent entities by way of creating new economic growth points in the regions of the Russian Federation on the basis of competitive edge;
- assisting in improving investment climate and increasing business activity;
- coordinating the state’s infrastructure investments and private capital investments taking into account space development priorities and resource restrictions;
- participating in implementing development projects and programs aimed at reducing differentiation in quality of life in constituent entities of the Russian Federation.
A Department of Regional Policy was established within the Bank in 2010.
- formulating Vnesheconombank’s regional policy, identifying priorities and mechanisms for pursuing this policy;
- assisting in comprehensive development of territories, preparing and implementing regional programs and programs including those aimed at supporting multi-industrial populated areas;
- forming a prospective portfolio of regional investment projects including those to be implemented in mono-cities;
- developing Vnesheconombank’s regional network on the territory of the Russian Federation;
- establishing an effective system of interaction with government authorities at regional and federal levels;
- assisting in Vnesheconombank’s active participation in regional development institutions’ activity as part of Vnesheconombank’s participation in their capital.
Vnesheconombank’s Interaction with Executive Authorities
Main lines of Vnesheconombank’s interaction with executive authorities are:
- offering consulting services to executive authorities, participating in formulating certain regional development programs, comprehensive investment development plans of mono-cities and others;
- entering into agreements with Russian constituent entities to establish strategic partnership and promote long-term and effective cooperation in the investment activity;
- participating in forums, conferences, committees, commissions and working groups held by executive authorities.
Agreements on cooperation provide for interaction between the parties in order to address top-priority objectives of Russian constituent entities’ socio-economic development and enhance their economic and industrial potential.
In order to achieve the said objectives the parties cooperate in the following lines of activity:
- providing information on prospective projects to be implemented on the territory of Russian constituent entities in order to explore the possibility of Vnesheconombank’s participation in funding such projects;
- performing evaluations of investment projects schedule to be implemented on the territory of Russian constituent entities;
- working out schemes for raising funds to finance projects on the territory of Russian constituent entities;
- preparing recommendations on reducing risks associated with funding investment projects.
Decisions in favor of signing agreements are to be made on the grounds of Russian constituent entities’ investment activity as well as on the basis of regional authorities activity aimed at creating a favorable investment climate for implementing socially meaningful investment projects. In doing this, top priority is given to projects being implemented or scheduled to be implemented with Vnesheconombank’s participation on the territory of a Russian constituent entity.
In order to build on framework agreements on cooperation, Vnesheconombank concludes additional agreements (protocols) on cooperation in promoting public private partnership, supporting small and medium-sized enterprises as well as agreements aimed at implementing specific investment agreements in a region.
Forming and enhancing Vnesheconombank’s regional network on the territory of the Russian Federation
In order to promote strategic partnership and long-term cooperation with Russian constituent entities Vnesheconombank take measures to develop and expand the Bank’s regional network. Seven representative offices of the Bank have been opened and operating in the North-West Federal District (the Bank’s Representative Office is in Saint-Petersburg), in the Urals Federal District (the Bank’s Representative Office is in Yekaterinburg), in the Siberian Federal District (the Bank’s Representative Office is in Krasnoyarsk), in the North-Caucasus Federal District (the Bank’s Representative Office is in Pyatigorsk), in the Far-East Federal District (the Bank’s Representative Office is in Khabarovsk), in the South Federal District (the Bank’s Representative Office is in Rostov-on-Don), in the Volga Federal District (the Bank’s Representative Office is in Nizhny Novgorod).
Vnesheconombank Representative Offices’ activity is to advance the Bank’s interests in the regions of the Russian Federation, search and select investment projects in line with Vnesheconombank’s Memorandum on Financial Policies, consult customers in the course of preparing documentation required by the Bank to conduct expert examination and assess social efficiency of projects implemented with Vnesheconombank’s participation, strengthen the business contacts and establish new business ties with regional authorities and the business community. The Bank’s Representative Offices are responsible for providing information analytical support for Vnesheconombank’s activity in the regions. They participate in forums, conferences on territories of their responsibility and are members of regional consultative bodies on investment activity.