The head of the state corporation VEB.RF Igor Shuvalov will retain his post for another five years – until 2029. His powers were extended ahead of schedule, the previous term of appointment ended in 2026.
Experts attribute this to the creation of VEB.RF by the leadership new instruments for financing investment projects of a national scale, an increase in the volume of funds attracted to the economy and effective work with problem assets.
Over the past five years, the state corporation has managed to implement a set of measures aimed at resolving historically accumulated problem debt. Today, problem assets on the balance sheet of VEB.RF are estimated at only 317 billion rubles. Before this, the “problem” portfolio amounted to more than 1 trillion rubles.
According to Andrey Piskunov, managing director of the NKR rating agency, VEB’s role as a development institution “is unique in a number of areas. The bank is implementing projects for which regional authorities do not have funds, and private businesses have no commercial interest.” The expert notes that the most popular and unique tool is the “Project Financing Factory” as a comprehensive mechanism for assessment, selection and syndicated lending of infrastructure projects with the participation of commercial entities. Banks often do not have the necessary expertise or branch representation to participate in lending to such projects. The time frame for their implementation, as a rule, significantly exceeds the planning horizon of commercial structures, and the risks are assessed as prohibitively high. VEB’s participation and government subsidies instill confidence in commercial investors and allow them to attract more funds for a longer period, Mr. Piskunov believes.
The volume of funds attracted to the Russian economy by the end of 2024, according to the corporation, will exceed 22 trillion rubles. with a plan of 17 trillion rubles. for 2021–2024. About half of this amount (10.2 trillion rubles) is aimed at developing industry, infrastructure and the urban economy. Among the most significant projects are the modernization of public transport in cities, the construction of the Novy Urengoy airport terminal, the launch of aluminum production plants, etc. About 7.5 trillion rubles. allocated to support foreign trade – non-resource exports and imports, about 3.4 trillion – to help small and medium-sized businesses.
The total volume of assets of VEB.RF today is about 2.5% of Russia’s GDP and by 2030, according to Mr. Shuvalov’s forecasts, it could double. “I hope that we will be able to work together to ensure that our portfolio amounts to 5% of GDP,” he said. Agreements on financing the implementation of new structural projects in the Arctic region, signed by VEB.RF at the recent St. Petersburg International Economic Forum, will significantly expand this portfolio. Achieving the stated target for the total volume of assets will be facilitated by the development of key support tools operated by VEB.RF – the “Project Financing Factory”, as well as surety and guarantee mechanisms.
This year, they reported in the state corporation, the adoption of a new strategy for VEB.RF is expected, which will be consistent with the updated national development goals of Russia for the period until 2030. The document is in the process of preparation, but the key indicator has already been formulated: in the period 2025–2030, the volume of projects supported by the development institute should amount to 30 trillion rubles.
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