The EBRD and Russia’s state-owned development bank,Vnesheconombank, have agreed to consider providing up to US$ 500 million each to finance projects in priority sectors with the aim of stimulating the diversification of the Russian economy and making it more competitive.
The two sides today signed a Memorandum of Understanding setting out the parameters of this cooperation programme which will support the Partnership for Modernisation launched by the EU and Russia at a June 2010 summit.
Under the terms of this MOU, the EBRD and Vnesheconombank aim to work jointly on reviewing projects initiated by EU or Russian companies. All the projects under this Modernisation Partnership framework are to be implemented in Russia.
The two institutions will also determine the possibility of co-financing such projects and plan to develop a coordinated approach to project structuring and implementation. The aim is to invest in key sectors driving growth and innovation.
The main priority sectors for investment under this programme will be:
· Energy efficiency
· Small and medium-sized businesses
· Commercialising innovation breakthroughs
The Partnership for Modernisation was unveiled at last year’s Russia-EU summit in Rostov-on-the-Don. At the time, the two sides described the partnership as a flexible framework for promoting reform, enhancing growth and raising competitiveness.