OREANDA-NEWS. March 30, 2016. Excerpts from Dmitry Medvedev’s opening remarks:

Today’s meeting of the Vnesheconombank (VEB) Supervisory Board is special because its management has changed and Sergey Gorkov, the bank’s new chairman, is taking part in it for the first time.

The current action plan drafted in 2014 has become largely outdated – in part due to the deterioration of foreign economic conditions. I’m referring to lower ratings and the impossibility of refinancing external debt.

 Under conditions of high debt pressure and instability on a number of macroeconomic positions, it is important for VEB’s new management to establish efficient monitoring of project implementation, conduct a meticulous audit, deal and restructure bad debts and get rid of the deadweight of non-profile assets.

It is necessary to switch to project financing on a larger scale. All of these nuances should be reflected in the new strategy of VEB’s development. The bank should concentrate its resources on projects linked with technological issues of economic modernisation, import substitution and support for non-energy exports.

I’m not referring to the change in general tasks for which VEB was established. The bank remains a leading development institute and will continue taking part in the funding of major projects in the most diverse spheres – industry, agriculture, transport and energy. We are open to changes in legislation if need be.

It was decided to increase VEB’s capital by 150 billion roubles. These funds will ensure the bank’s financial stability in 2016 and allow it to fulfil its obligations on foreign borrowings.

A resolution aimed at increasing the efficiency of the Russian Agency for Export Credit and Investment Insurance (EXIAR) has been signed. New rules have been endorsed for insuring export credits and investment against business and political risks. The changes are aimed, in part, at supporting projects on creating and upgrading export-oriented industries, as well as projects on developing Russian service centres and production lines abroad. The limit of EXIAR’s insurance liability has been raised to \\$10 billion.