On the decisions of Vnesheconombank’s supervisory board

At its meeting on 18 May 2017, the Supervisory Board of Vnesheconombank considered extending a loan to AO Transholdleasing to deliver a project on the acquisition and leasing of subway cars to the Moscow Metro under a life cycle contract (LCC-2) using resources from the National Wealth Fund (NWF). The project provides for the delivery of 768 subway cars manufactured at OAO Metrovagonmash to the Moscow Metro in 2017-2020. The contractor will also provide maintenance services to the subway cars throughout their life cycle. The total value of the project is RUB 63.5 billion, of which RUB 38.3 billion will be financed out of the funds raised from NWF. The funds shall be repaid by the end of 2035. The project is to be carried out as part of the Moscow Government programme designed to renovate the obsolete electric train fleet on the operational lines of the Moscow Metro and develop the metro infrastructure to ensure high standards and top-flight service for Moscow passengers.

Using the NWF funds deposited with Vnesheconombank, the Bank already extended financing for the first project on subway cars under a similar life cycle contract at the end of 2016.

The Supervisory Board also considered extending a RUB 14 billion loan to AO AHML. The bulk of the funds will be allocated to finance rental market development programmes.

Furthermore, the Supervisory Board considered setting up OOO VEB Innovations to promote the National Technological Initiative (NTI) and digital economy projects, attract co-investors, and facilitate the entry of Russian innovation companies into the global market. Transformation of the subsidiary into a limited liability company is primarily attributed to VEB’s focus on rapid development and innovative areas, including blockchain, marketplace, and quantum and convergent technologies. VEB Innovations have already selected three ambitious projects eligible for financing, all of which fall under the following NTI categories: AeroNet (distributed unmanned aerial vehicle systems), EnergyNet (distributed power generation from personal power to smart grid and smart city), and HealthNet (personalized medicine).

Furthermore, a decision was taken to establish an audit committee under the auspices of the Supervisory Board. The committee is designed to help the Bank’s supreme collective body to efficiently exercise control over VEB’s financial and business operations. The Russian Minister of Finance Anton Siluanov is to head the committee, which will comprise members of the VEB Supervisory Board, federal government officials, and expert community representatives.

The Supervisory Board adopted a number of corporate decisions, in particular, allowing an increase in the authorized capital of the Russian Export Center (REC, VEB Group) with a view of developing its regional and global network and boosting lending to exporters. It has been also decided to expand REC’s authority in terms of subsidizing the participation of Russian manufacturers in foreign exhibitions and delivering strategic projects to promote exports, specifically, the national export brand “Made in Russia”.

Still another item on the agenda was Vnesheconombank’s corporate-wide performance ratio system for the year 2017. Presented for approval by the Supervisory Board was a list of KPIs together with their weighting factors, and the method for determining and assessment to be used for end-of-year bonus payments to VEB employees. When developing its KPI system, the Bank was guided by basic approaches to the identification of KPI lists and weighting factors approved by the Supervisory Board in March 2017.

And, finally, the Supervisory Board addressed a number of personnel issues. A decision was taken to appoint Svetlana Yachevskaya as Deputy Chairman of Vnesheconombank – Member of the Management Board. Presently, Svetlana Yachevskaya holds the office of Director of Legal Department at the Russian Ministry of Finance. At Vnesheconombank, Svetlana will coordinate operations related to the functions of the agent for the Government of the Russian Federation, internal and sovereign debt, financial assets of the Russian Federation, and legal groundwork for financial asset management.

Vladimir Shaprinskiy was relieved from the office of Member of the Management Board but retained his position as Chief Accountant of Vnesheconombank.

Press Office
E-mail: press@veb.ru