Meeting with Chairman of VEB.RF Igor Shuvalov

President of Russia Vladimir Putin: Mr Shuvalov, good afternoon. How is your organisation faring?

Chairman of the State Development Corporation VEB.RF Igor Shuvalov Shuvalov IgorChairman of the State Development Corporation VEB.RF: Thank you, Mr President. Everything is ok. Regulation of the banking sector and the corporate sector in general allows us not to publish our financial statements. We understand that this is a provisional measure and the Central Bank constantly says as much, too. However, since we see our 2022 results as positive, including for collaboration with our counterparts on the capital market, we have decided, as agreed with the Government, to disclose certain data. I want to report these data to you.

Vladimir Putin: Please do.

Igor Shuvalov: Currently, VEB's own capital amounts to 785 billion rubles and its capital adequacy ratio (CAR) is high - 15.1 percent. The law requires us to keep our CAR at least at ten percent. When capital adequacy falls close to 11 percent, we have to discuss this situation with the Central Bank and the Government, but today our margin of safety is high enough. We have notified all creditors we have worked with, including foreign ones, about this. Moreover, we signalled our readiness to provide an even greater amount of information as a move to create a more trusting relationship.

What is happening with our instruments now? The Project Finance Factory: this year, the Government has decided to give it a bit of a break for a period. You spoke about this, this is your instruction, because the current situation is one where businesses want to share more risks with the development bank.

Under its original rules, the Project Finance Factory required 20 percent of a project initiator's capital. So far, it has been decided that for the next two years an investor can provide 15 percent. Thus, it is a certain break for investors.

Last year, you also spoke about the need to establish equity funds. All decisions to this effect were taken. Now we are launching the first two funds. The total lending limit, with VEB's participation, at these funds will amount to 200 billion rubles. So, it will be possible to combine the initiator's initial instalment made with their own money and those of these equity funds. We think this will be rather effective.

To be continued.