OREANDA-NEWS. On February 13, 2007 the EBRD and Russia’s Bank for Development and Foreign Economic Affairs (Vnesheconombank) have agreed to work together to promote, among other objectives, the diversification of the Russian economy, the renewal of infrastructure and the development of Public-Private Partnerships, reported the press-centre of EBRD.

A Memorandum of Understanding signed by EBRD President Jean Lemierre and Vnesheconombank chairman Vladimir Dmitriev in Moscow outlines priority sectors for cooperation between the two organisations.

Above all, this cooperation should help all speed up the economic transformations which both our banks were set up to foster, Mr. Lemierre said. There are many things which our institutions can and should learn from each other and Russia has a right to expect that uniting our strengths in this way will make a significant difference in key areas of the economy, Mr. Lemierre added.

For his part, Vnesheconombank chairman Vladimir Dmitriev said the signing of the Memorandum of Understanding laid the groundwork for a practical combination of the two banks’ skills and experience.

The two sides agreed to explore the possibility of co-financing projects in such areas as transport infrastructure, energy and municipal services or in sectors with significant environmental and energy efficiency potential, as well as projects which contribute to the diversification of the Russian economy.

The two institutions will also consider setting up a special unit, together with other interested organisations, in order to help manage the project preparation process for Public-Private Partnerships in infrastructure. Success on this front would remove one of the main obstacles to increased investments in this key economic sector.

The EBRD and Vnesheconombank will in addition cooperate in expanding their presence in Russia’s regions, including through the co-financing of regional projects.

A joint working group will be established to facilitate coordination between the two organisations and to explore additional ways of enhancing cooperation between them.