State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" operates to enhance competitiveness of the Russian economy, diversify it and stimulate investment activity.
Vnesheconombank is not a commercial bank, its activity is governed by special Law № 82-FZ which came into force on June 4, 2007.
VEB does not compete with commercial credit institutions and participates only in those projects that cannot receive funding from private investors. Under the Memorandum on Financial Policies, Vnesheconombank is to extend credits, guarantees and sureties under projects a payback period of which exceed 5 years and a total value is more than 2 billion rubles.
At present, Vnesheconombank Group* has been set up, it is comprised of VEB’s subsidiary institutions whose activities are designed to implement various provisions of the Law “On the Bank for Development”.
VEB 2.0: BUILDING A BANK OF THE FUTURE
In December 2016, the Supervisory Board approved VEB Strategy 2021. The Strategy brings into sharper focus the segments which are most critical for the transformation of the Russian economy and in which the Bank can play the key role, in particular:
- production sector,
- high-technology sphere,
The implementation of the Strategy will have a considerable positive effect on the Russian economy. The growth of VEB investments by 500 billion rubles by 2021 (including co-investments), as provided in the Strategy, will ensure a GDP contribution of 0.4-0.7% in 2021.
VEB’s activity will contribute to the improvement of the investment climate in the Russian Federation. Acting as an anchor investor, VEB will seek to raise the funds of both Russian business and foreign partners for the financing of its long-term investment projects. Project support on the basis of advanced IT solutions and use of public-private partnership mechanisms will generate added value for VEB’s clients and mitigate their risks.
*This definition does not have a legal status and is not in line with the definition “the banking group” or “financial industrial group” in accordance with the Russian laws.