VEB invests together with the Islamic development Bank in projects in the $3-5 billion

“Projects are assumed to be not separate countries, namely the Islamic development Bank is an international development Bank, which includes 57 States. We need to establish relationships, because the VEB Bank and the IDB are engaged in similar tasks in different regions, and we see potential in several billion dollars in terms of infrastructure,” said Gorkov, adding that, in his estimation, the total investment could reach $3-5 billion.

The first deal is scheduled for autumn this year, said Gorkov. “This is the pilot story, because in reality, nobody in Russia such projects did not. The first deal will be small, we expect $100 million,” he said, noting that is not yet resolved, where the VEB and the IDB will invest.

VEB and the IDB at present, according to Gor, considering several infrastructure projects, for example, in the Caucasus and Tatarstan. “It’s not transportation projects, there are issues of tourist infrastructure: construction of hotels and recreational areas, tourism infrastructure, possible history of agricultural infrastructure. Especially with regard to the Halal products which are exported, and we see a great synergy,” he said.

May 27, VEB and the IDB signed a Memorandum of understanding under which they agreed to develop cooperation in the field of joint financing of investment projects, support export-import operations between the countries.

According to preliminary data on international reporting standards for the year 2015, the group’s net profit of Vnesheconombank amounted to 14.9 billion RUB compared to net loss for 2014 to 250 billion roubles. However to show such a result was possible thanks to the help of the state. According to first Deputy Chairman of VEB Nicholas tsekhomskogo, the greatest contribution to the financial result has made state aid. “Under international reporting standards recognized income from prenociste host of liabilities. The national wealth Fund placed with us over $6 billion at the rate of 0.25%, in the financial statements is recognized as an immediate profit,” said Tsekhomsky.

At the end of 2015, the government began to discuss the rescue plan of the Bank. In late February, Russian President Vladimir Putin by his decree dismissed the Chairman of Vnesheconombank Vladimir Dmitriev and was appointed to the post by Sergey Gor’kova, until recently, was the Chairman of Sberbank. By 30 June the Bank will prepare a new business model. The current model of EBV Gorkov called broken: “we had market funding at high rates, and the EBV needs to invest in low-yielding long projects. This was an unbalanced model. According to him, as a result, the portfolio of VEB 50% of the assets does not yield sufficient interest income.

VEB of about $18 billion foreign debt, of which $3 billion due in 2016, and the bad assets of billions of dollars, including Olympic construction and loans for the financing of the Ukrainian metallurgy, issued prior to 2014. Officials have estimated the total amount of funds necessary to VEB, 1.2–1.5 trillion rubles., but to allocate the same amount at a time is impossible.