OREANDA-NEWS. April 11, 2012. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Nordic Environment Finance Corporation (NEFCO) entered into a Memorandum on Cooperation.

On behalf of Vnesheconombank the Memorandum was signed by Vnesheconombank Chairman Vladimir Dmitriev and on behalf of NEFCO - by its Managing Director Magnus Rystedt.

The parties agreed to cooperate in such sectors as energy efficiency, ecology, waste recycling, modernization of communal and housing services and introduction of innovations in the field of clean technologies.

Cooperation with NEFCO will enable Vnesheconombank to study the Corporation’s business experience in financing regional projects, its methods to search for, select, assess and monitor energy efficiency and ecology projects as well as  study approaches to developing and introducing relevant financial products.

In Russia, NEFCO funds regional and municipal investment projects under several investment programs (“Energy Efficiency” Clean Production” and others). Moreover, the Corporation is actively involved in implementing projects related to improving the ecological situation in Russia’s Arctic zone. Specifically, under the agreement with the Russian Federation and other parties NEFCO acts as a distributor of the Arctic Council Project Support Fund’s financial resources, with Russia being one of its largest donors.

Enhanced cooperation with NEFCO will allow Vnesheconombank to more actively participate in interstate and multilateral programs and projects in the northern region within the Arctic Council, the Northern Dimension and others. NEFCO showed interest in developing cooperation with institutions incoporated in Vnesheconombank Group.

The Nordic Environment Finance Corporation is an international financial institution founded by governments of Sweden, Denmark, Norway, Iceland and Finland and owned by them. The Corporation’s head office is located in the city of Helsinki. The Corporation is responsible for funding investment projects in Russia, Ukraine, Baltic States and Belarus in order to improve the ecological situation in the Northern region of Europe. At present, the Corporation has about 400 projects in its investment portfolio. These projects are funded on the PPP principles through various mechanisms including special funds, direct investments and lending.