Vnesheconombank Chairman Vladimir Dmitriev’s Interview to the Information Channel Vesti (The 8th International Investment Forum “Sochi-2009”)

TV Channel Vesti-24
18.09.2009, 15:30

HOST: We continue to talk with the guests of the Sochi Forum. Our economic analyst Alexandr Karievsky is on the air again and he is ready to introduce our next guest.

Alexandr KARIEVSKY: Yes, of course. Now we’ll talk with Vladimir Dmitriev, Vnesheconombank Chairman. Good afternoon Vladimir Alexandrovich!

Vladimir DMITRIEV: Good afternoon!

Alexandr KARIEVSKY: You are an active participant in the Sochi Forum; you are an active participant in the Olympic Construction. What interesting moments were there in the Forum today?

Vladimir DMITRIEV: As far as the Olympic construction is concerned, interesting moments will start very soon because the next session devoted to Olympic Games will be held and Vnesheconombank, as one of the main institutions responsible for financing Olympic projects, will participate in the discussions. As to the Forum itself, it is as always rich in content. Its program is very interesting.  Today, everybody listened to the Prime Minster speaking at the first plenary session with profound interest. I for one listened to him not only as a representative of state-run business but also as the Chairman of the Bank the Supervisory Board of which is headed by the Prime Minister.

Alexandr KARIEVSKY: Do you remember 6 percent Vladimir Putin talked about?

Vladimir DMITRIEV: Of course, I do. This is a very formidable and challenging task for both business and authorities. In our lending program we at least maintain interest rates that are a lot lower than market ones. And this, above all, applies to Olympic facilities. At the same time, the Prime Minister gave us key objectives of our country’s economic development. Vnesheconombank’s main lines of activity are of course infrastructure and the innovative development of our economy and those industrial sectors Vnesheconombank gives high priority to.

Alexandr KARIEVSKY: What agreements are you supposed to sign here or you are just seeking partners?

Vladimir DMITRIEV: We traditionally attend the Kuban Economic Forum and sign agreements on specific investment projects. This has been also the case this time. We signed an agreement with the Government of the Chechen Republic on Vnesheconombank’s participation in implementing power engineering projects on the Argun river and on financing the construction of a large-scale agro-industrial complex. We have just completed talks with the Rostov region where a major agro-industrial project aimed at industrial production of turkey meat is being implemented with Vnesheconombank’s participation. Now they produce about 15 thousand tons, by spring they‘ll start producing 30 thousand tons of turkey meat per year and now they are starting building production facilities capable of producing 90 thousand tons of turkey meat as well as an industrial complex to manufacture steel constructions that would boost the expanding potential of this region. Today we have signed a symbolic, landmark agreement with Tobolsk Polymer on building a major gasochemical complex in Tobolsk to utilize associated petroleum gas. This is the largest project of such magnitude and such ecological effect in our country and in Europe.

Alexandr KARIEVSKY: Does it cost billions of dollars?

Vladimir DMITRIEV: Yes, it does. The project’s value is 1.5 billion dollars. But we are not embarrassed by these figures because we are raising funds to finance it abroad. We are supplying the most advanced equipment to this complex from European countries. Our partners in Germany – Germany’s Bank for Development, Italian partners and banks help us. So, the project stands a good chance of success and of becoming and an emblematic one in Russia’s economy ad in Siberia in particular.

ALexandr KARIEVSKY: At what interest rates are you raising money abroad? Are they lower than 6 percent or just the same?

Vladimir DMITRIEV: At least, Vnesheconombank’s risk is estimated at a sovereign level and, of course, interest rates at which we raise credits abroad are much lower than those we can count on in the Russian market. Moving back to the signals given by our Prime Minister it is safe to say that both business and authorities have been given clear-cut instructions to reduce inflation, the Central Bank should reduce the refinancing rate and business should be geared to interest rates lower than 10 percent.

Alexandr KARIEVSKY: Vladimir Alexandrovich, another small question to you – are you going to sell shares that you bought last year in the short term or not?

Vladimir DMITRIEV: Traditionally, Vnesheconombank is an active market maker on the securities market. In our investment policy we are geared to generating incomes on the stock market but at the same time we give high priority to stabilizing the Russian stock market. To this end, the government committed 175 billion rubles to Vnesheconombank. The money was earmarked to diversify the portfolio in which financial resources of the National Wealth Fund are invested and as well as to maintain sustainability of the Russian stock market, which is our primary objective.

Alexandr KARIEVSKY: Thank you Vladimir Alexandrovich for finding time for us. I’d like to remind you that we talked to Vladimir DMITRIEV, Vnesheconombank Chairman.