Vnesheconombank’s participation in financing investment projects subject to the Federal Law “On the Bank for Development”
In pursuance of the Federal Law “On the Bank for Development” Vnesheconombank undertakes its activity as a development institution. It is responsible for providing financial support for investment projects of great importance for the development of the Russian economy, as they do not receive sufficient financial resources from the private sector because of high risks, long pay-back periods and complexity of required support instruments etc.
Vnesheconombank supports such projects both by way of extending credits and loans directly (jointly with private financial institutions) and by way of reducing risks (extension of guarantees, insurance of credits etc). Vnesheconombank’s participation in implementing investment projects of national significance allows private financial institutions to classify them as acceptable in terms of profit-risk ratio.
After the Russian Government approved Resolution № 1697-r on November 19, 2008, agro-industrial complex was included in the list of sectoral priorities of Vnesheconombank’s investment activity for 2007-2010, thus allowing Vnesheconombank to resume its participation in implementing projects in this economic sector.
In accordance with Instruction of the Russian Government dated November 26, 2009 № 1783-r projects aimed at boosting energy efficiency were also included in the main lines of Vnesheconombank’s investment activity. Also included in the list of sectoral priorities of Vnesheconombank’s investment activity are strategic computer technologies and software, information-communications systems, medical equipment and pharmaceutics.
Figure 1. Structure of Decisions Made by Vnesheconombank’s
Governance Bodies by Lines of Activity as of 01.10.2011
Figure 2. Regional Structure of Investment Projects and export support projects Considered by Vnesheconombank’s Governance Bodies as of 01.10.2011
