OREANDA-NEWS. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the European Investment Bank (EIB) entered into a credit agreement. Under the agreement EIB is to extend 200 million euros to Vnesheconombank to fund projects of small and medium-sized enterprises as well as other projects in line with financing institutions’ standards. Projects are expected to be funded through Vnesheconombank’s subsidiary banks.

On behalf of Vnesheconombank the agreement was signed by Chairman Vladimir Dmitriev and on behalf of EIB – by Vice President Anton Rop.

The parties give high priority to projects designed to develop socio-economic infrastructure including transport and power engineering infrastructure; information and telecommunications technologies, local private sector, ecological projects (including mitigating climatic change consequences).

This agreement would help to enhance mutually beneficial cooperation between Vnesheconombank and EIB as part of supporting the initiative “Partnership for Modernization” put forward by the European Union and the Russian Federation at the summit in June of 2010.

The credit agreement was made to build on the Memorandum of Understanding signed by the parties earlier. Under the Memorandum the financing institutions agreed to work together on projects being implemented by European and Russian companies in Russia as part of Partnership. The parties agreed to extend up to 500 million euros each to this end provided that potential projects are in line with financial criteria of Vnesheconombank and EIB.