OREANDA-NEWS. On 04 March 2008 was announced, that IFC, a member of the World Bank Group, has agreed to invest in KuibyshevAzot, one of Russia’s leading chemicals manufacturers, helping to create new jobs by diversifying Russia’s petrochemical industry to include finished products.

IFC’s $20 million equity investment will help increase Russia’s value-added exports and improve access to long-term financing that is critical for the company’s future growth.

“IFC is an important partner in helping us strengthen competitiveness through product diversification,” said Victor Gerasimenko, President of KuibyshevAzot. “With IFC’s support we will also be able to expand into higher-margin products while lowering our costs by modernizing our production facilities.”

The investment supports a company operating outside Russia’s economic hubs in the Samara region, 860 kilometers southeast of Moscow on the Volga River. It is expected to boost the regional economy by creating jobs and business opportunities for enterprises in Samara and other regions.

“IFC’s equity investment in KuibyshevAzot continues a relationship which dates back to 2003,” said Somit Varma, IFC Director for Oil, Gas, Mining, and Chemicals. ”The company first participated in IFC’s Russia Corporate Governance Project, followed by long-term debt financing in 2005. We now look forward to growing this relationship as an equity investor.”

As part of its corporate governance work, IFC has trained Russian companies and advised managers on internationally accepted practices. IFC has also helped improve corporate governance regulations at the national level in Russia.