Opening Asia for Russia

11.07.2018 63 просмотров

large number of international development institutions operate in Eurasia: the World Bank Group, the European Bank for Reconstruction and Development, the Asian Development Bank, the recently established Asian Infrastructure Investment Bank and the New Development Bank, the Eurasian Development Bank. What is the balance of supply and demand in the region? What priority tasks are solved by financial development institutions in the Eurasian space? We talked with Andrey Krainim, Deputy Chairman of the Eurasian Development Bank.

“Like all international financial institutions,” he said, “we carry out investment activities, contributing to the formation and development of the economies of the participating states, their sustainable economic growth. However, our bank is one of the few multilateral development banks in the region that aims to promote economic integration between member countries. 

Our strategic priority is to finance projects with an integration effect, the EDB Deputy Chairman emphasized, projects that creating additional flows of mutual trade and mutual investment between member countries, providing for the formation and strengthening of intercountry production chains, contributing to the real corporate integration of economic entities from different countries, the creation of joint ventures.

supports cross-country infrastructure projects as a priority -  construction of cross-border roads and railways, telecommunications lines, power lines. For us, priority are national integration projects - the construction of sea and river ports, airports, logistics terminals, as well as ensuring infrastructure connectivity within the member countries. The shareholders have set a goal for us that at least half of the projects in the EDB investment portfolio should be among the integration initiatives. At present, we have more than 60% of such projects.

Another group of targeted investment projects, Andrey Krainiy said, is represented by national development projects, which are projects with long payback periods and rather high risks. Participation in them is not among the priorities of the commercial banking sector. In addition to the development of internal, for example, municipal, infrastructure, these include projects for the creation and development of new industries that support the efforts undertaken by the EDB member countries in the field of import substitution and strengthening the export potential of national economies, projects with an innovative component related to changes in the technological structure and methods of production by national companies.

An important task for the EDB is to "replace" in Russia the activities of international development institutions that have suspended their work in it, in particular the EBRD, - said Andrey Krainy, EDB Deputy Chairman, - In early 2018, the EDB provided additional funding in the amount of 1.3 billion rubles to complete the EBRD project to modernize the Yakutsk water utility. Last week, we replaced the EBRD loan for the Western High-Speed Diameter project in the amount of EUR 193 million.

Answering the question about which projects attract financing in the region and from what sources, Andrei Krainiy, in particular, said: “If we talk about the sectoral affiliation of investment projects, then in our bank the current investment portfolio is 2.8 billion US dollars and is represented by transport and infrastructure by 32.8%, mining by 21.1%, financial sector by 20.2%, power industry by 14.5%. Also, the target industries for the EDB are the chemical, petrochemical and oil and gas industries, mechanical engineering, metallurgy, agro-industrial complex, and information technology. EDB’s key ongoing projects include the construction of the Western High-Speed Diameter in St. Petersburg (USD 380 million), the construction of the Central Ring Road, Start-up Complex No. 3 (USD 160 million), the integration project to expand the Belarusian Metallurgical Plant (USD 113 million), creation of the Nur Zholy automobile checkpoint on the section of the Almaty-Khorgos highway of the ITC Western Europe - Western China (USD 97 million), modernization of the Vodokanal of St. Petersburg (USD 95 million .USA).

Now a number of new major, including landmark, infrastructure projects are being prepared, including the Moscow-Kazan high-speed highway, TsKAD-4, Belkomur, and the Northern Latitudinal Railway. The source of project financing is the bank's own capital and borrowed funds attracted for this capital. For these purposes, we issue Eurobonds, bonds on local markets (rubles and tenge), attract targeted funding from other development institutions, for example, a loan from the New Development Bank in the amount of USD 50 million for the construction of Beloporozhsky HPP-1 and HPP-2 in Karelia . We also work with potential investors in Asian markets: the "big five" banks in China, banks in India, financial institutions in the UAE and other countries in the Middle East.

EDB 2.jpg
EDB logo. A frame from the News of the TV channel "Greater Asia"



Read also



Science and education

Partner news