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EBRD and Russian government to cooperate on renewal of infrastructure
Bank and Ministry of Economic Development sign memorandum of understanding
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.
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.
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