OREANDA-NEWS.  Dmitry Medvedev’s opening remarks: We are holding a regular meeting of the Vnesheconombank Supervisory Board, and will discuss the VEB’s report for 2012. Our goals call for serious investment in modern high-tech projects. Obviously, these goals cannot be reached without development institution. VEB is our leading institution – as a bank for development it issued 720 billion roubles worth of loans as of January 1, 2013. That's almost 200 billion roubles more than VEB planned in its development strategy. The bulk of this sum – about 670 billion roubles – has funded major investment projects, primarily those dealing with infrastructure, the agro-industrial sector and the chemical and petrochemical industry. If we count all VEB-issued loans, in all VEB transferred more than one trillion roubles to the economy.

The most important projects that VEB launched last year are as follows: the construction of the Express-AM7 spacecraft; the reconstruction of the Izhevsk thermal power station; the building of tankers for the transportation of oil and oil products; and the development of the Talitsk section of the Verkhne-Kamsk potash-magnesium deposit, to name a few.

These are large-scale projects. VEB is doing a lot for small and medium-sized companies, and at one time we had oriented it to support them. The bank granted them almost 50 billion roubles worth of loans or 20 billion roubles more than in 2011. Moreover, the amount of VEB-issued loans in 2012 is double the corresponding figure for 2011. A mechanism has been created to ensure competitive funding of Russian exporters. We’ve spoken about this.
In late 2012 VEB received a subsidy worth three billion roubles. This was the first time in modern Russian practice that a bank was granted a targeted subsidy to support exports in line with WTO and OECD requirements. This money will be spent to make up for the interest rate on export loans.

There have been borrowings both on the domestic and foreign financial markets. Syndicated loans were also used. Naturally, a pool of banks took part in this. I think Mr Dmitriyev (Vladimir Dmitryev, VEB Chairman) will make a separate report on this.

Dmitry Medvedev: VEB is our leading institution – as a bank for development it issued 720 billion roubles worth of loans as of January 1, 2013. That's almost 200 billion roubles more than VEB planned in its development strategy. The bulk of this sum – about 670 billion roubles – has funded major investment projects, primarily those dealing with infrastructure, the agro-industrial sector and the chemical and petrochemical industry.

And one more point – VEB has become a full-fledged member of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP). I hope this will help VEB further its influence, and that as a result, Russia will play a bigger role in this region. It is very important for us to be present there in different capacities. Mr Dmitriyev will speak about this in more detail.

I’d like to make one more point that is of social significance. VEB is completing its programme of investing in the construction of affordable housing. It is almost 95% complete. VEB has issued more than 140 billion roubles worth of about 88,000 mortgage loans, and has purchased around 3.3 million square metres of housing. This programme covers almost all regions. Since its start in 2010, interest rates were reduced to almost 13% a year on average. Regrettably, they are still very high, although attempts to reduce them have been taken.

This is a task for the future, and not only for VEB, because all interest rates are interconnected. If one bank has a 5% rate, no other bank can have it at 13%. So this is a task for our entire banking system, and we have repeatedly discussed this at our meetings. We must encourage the demand for economy-class housing, and it should be accessible to the broadest strata. I think we could extend the programme’s term to the end of 2014. Let’s discuss this at our Supervisory Board meeting.

Dmitry Medvedev: VEB is completing its programme of investing in the construction of affordable housing. It is almost 95% complete. VEB has issued more than 140 billion roubles worth of about 88,000 mortgage loans, and has purchased around 3.3 million square metres of housing. This programme covers almost all regions.

Finally, we’ll endorse the results of the Development Prize contest on various modern projects and investment programmes. All in all, 221 applications were submitted. Usually, the names of the winners are announced at the St. Petersburg Economic Forum, but I think Mr Dmitriyev will make a separate report on this issue. This is our agenda. Naturally, it includes many other issues that I haven’t mentioned. So we must be concise and at the same time we must probe into all issues under discussion.

Let’s start our discussion with the annual report and the decision on the distribution of profits received by VEB in 2012.