Approved by parliament May 4, the new legislation envisages the consolidation of Vnesheconombank (VEB), servicing Russia's external debt and providing support for intergovernmental agreements, with federal stakes in Roseximbank and the Russian Bank for Development.
The consolidated VEB, with a charter capital of at least 70 billion rubles (about $2.7 billion), will provide medium- and long-term financing for investment projects in priority areas of Russia's economy, assist in drawing foreign investment, and offer financial support for export/import operations.
The bank will also insure export loans from political and commercial risks under procedures established by the government, and will help Russian companies implement large-scale economic projects.
The renewed VEB, otherwise referred to as the Bank for Development and Foreign Economic Operations, will be controlled by the government through a supervisory board, and will also be accountable to the Central Bank.
Broader goals include diversifying the Russian economy and making it more competitive.
