State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” was established in 2007 through a transformation of Bank for Foreign Economic Affairs of the USSR.
Vnesheconombank operates in conformity with Federal Law dated May 17, 2007 “On Bank for Development”. The Memorandum on Financial Policies approved by Resolution of the Government of the Russian Federation dated July 27, 2007 sets forth major business lines and indicators of the Bank’s performance. The Supervisory Board headed by Chairman of the Russian Government is Vnesheconombank’s supreme governing body.
VEB is one of the key instruments for implementing the state economic policy aimed at removing infrastructure restrictions that impede economic growth, enhancing efficient utilization of natural resources, developing high-tech industries, unleashing innovative and industrial potential of small-and medium-sized enterprises and ensuring support for exports of industrial goods and services.
In its investment activities, VEB gives priority to the following industries : aircraft industry and space and missile complex ; shipbuilding ; electronics ; nuclear industry, inclusive of nuclear power ; transport, special-purpose and power engineering industry ; metallurgy (special steel production) ; wood-working industry ; military-industrial complex ; agro-industrial complex ; strategic computer technologies and software ; information and communication systems ; medical equipment and pharmaceuticals.
In line with the Memorandum on Financial Policies, VEB delivers investment projects aimed at : removing infrastructure impediments to economic growth ; fostering innovations ; enhancing the efficiency of natural resources utilization ; protecting the environment ; increasing energy efficiency ; developing SMEs ; supporting exports of agricultural and industrial production and services.
VEB participates in implementing projects that are of priority importance for the development of Russia’s economy, but which, for a number of reasons (huge volumes of investment resources required, complexity, long payback periods) experience resource shortage. VEB delivers support for projects both through directly extended loans and credits, including project co-financing with other financial institutions, and by issuing guarantees and sureties. VEB gives preference to PPP-based projects.
VEB implements programs designed to support SMEs through its 100% subsidiary – OJSC “Russian Development Bank”, while the task of issuing state guarantees of the Russian Federation to secure exports support comes within the competences of the Bank’s other 100% subsidiary – CJSC “Roseximbank”.
Since 2003, in accordance with the decision of the Government of the Russian Federation, VEB has been dedicated to performing the function of the State Trust Management Company (STMC) to manage pension savings funds of the citizens. Presently, about RUB 710 billion worth of funds of the insured citizens of the Russian Federation are under VEB’s management.
Since October 2008, acting in accordance with the Federal Law’ On Additional Measures to Support the Financial System of the Russian Federation’ and the decisions of the Russian Government, VEB is entrusted with new meaningful tasks that include refinancing foreign debts of Russian corporates and banks ; extending subordinated loans to banks ; effective investment of the National Wealth Fund’s money.
The Bank is noted for an impeccable financial reputation. The long-term credit ratings assigned to it by the world leading rating agencies (Standard & Poor’s, Fitch Ratings, Moody’s) are at par with the sovereign rating of the Russian Federation.
At a glance
- CEO : Sergey Gorkov
- Sherpa : Sergey Vasiliev
- Location : Moscow
- Website : www.veb.ru