OREANDA-NEWS. On June 07, 2007 the European Bank for Reconstruction and Development and the Russian government have agreed to work together on identifying priority projects eligible for financing by the Bank in the field of transport, power and municipal services as part of a massive drive to renew the country’s infrastructure, reported the press-centre of  EBRD.

A Memorandum of Understanding signed by EBRD President Jean Lemierre and German Gref, Russia’s Minister of Economic Development and Trade, will facilitate cooperation with the aim of increasing substantially the Bank’s involvement in infrastructure financing in what is its largest country of operation.

The EBRD has long identified the renewal of infrastructure as a top priority for Russia, key to unlocking its full economic potential, enhancing energy efficiency and securing wellbeing and prosperity for its population, Mr. Lemierre said at a signing ceremony in Russia’s northern capital on the sidelines of the St. Petersburg Economic Forum.

Since starting its operations in Russia, the Bank has already committed ?1,9 billion to the sectors covered by this memorandum within a total project value over ?5 billion, but the concrete support of the Ministry of Economic Development has the potential to expand significantly EBRD infrastructure financing, Mr. Lemierre added.

Since its creation in 1991, the EBRD has committed ? 540 million to the Russian power sector, ?770 million to transport and ?580 million to municipal projects. A growing number of the Bank’s clients, especially in the infrastructure sector, are making use of the Rouble lending programme devised by the EBRD to allow borrowers to match currency obligations with the revenue streams.