State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” was established in 2007 by means of reorganization of the Bank for Foreign Economic Affairs of the USSR (Vnesheconombank of the USSR).

Vnesheconombank acts to promote competitiveness of the Russian Federation economy, its diversification and to encourage investment activity through investment, foreign economic activities, insurance and consultancy.

Vnesheconombank is viewed as a key instrument for implementing the state economic policy that is primarily focused on removing infrastructure restrictions on economic growth, enhancing the efficiency of natural resources utilization, developing high-tech industries, unleashing innovative and industrial potential of small- and medium-sized enterprises (SMEs), as well as ensuring support for exports of industrial production and services.

Vnesheconombank acts on the basis of Federal Law N 82-FZ ‘On Bank for Development’ dd. May 17, 2007. Its core activity areas and financial performance indicators are set forth in Memorandum on Financial Policies.

Vnesheconombank’s Supervisory Board is its supreme governing body. The Chairman of the Russian Federation Government – Vladimir Putin, heads the Supervisory Board.

Vnesheconombank carries out banking operations, envisaged by the Law, without the license of the Central Bank of the Russian Federation.

Vnesheconombank participates in selecting and implementing projects that are of priority importance for the development of Russia’s economy, but which, for a number of reasons (huge volumes of investment resources required, complexity, long payback periods) experience resource shortage. Vnesheconombank delivers support for such projects both through directly extended loans and credits, including project co-financing with other financial institutions, and by issuing guarantees and sureties.

Major areas of Vnesheconombank’s investment activities:

- financing investment projects designed to remove infrastructure restrictions on economic growth;

- fostering innovations;

- efficient utilization of natural resources and environmental protection;

- developing SMEs

- ensuring support for exports of industrial production and services.

Vnesheconombank gives preference to projects that are to be implemented on the public-private partnership basis (PPP). To accomplish this task, the Bank has established Center for Public-Private Partnership, whose main aim is to offer high quality professional advisory services to state (federal and regional) and municipal bodies on applying PPP instruments when implementing industrial and regional development strategies, as well as on further developing these instruments.

In the circumstances of a global financial meltdown, Vnesheconombank in accordance with Federal Law of the Russian Federation № 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation” is authorised to extend credits to cash-strapped Russian companies and banks to refinance obligations towards foreign creditors, extend subordinated unsecured loans to Russian credit institutions.

Vnesheconombank is authorised by the Government of the Russian Federation to support the Russian stockmarket through purchasing Russian securities.

Within the framework of the pension reform underway in the country, Vnesheconombank was appointed as State Trust Management Company responsible for trust management of the funded portion of the citizens’ pensions.

The Bank acts as a subagent for exchanging Soviet-era commercial (FTO) debt.