PMFORUM Breaking News
Breaking News in the Project Management World
Tuesday, March 09, 2010
EBRD Announces New Strategy for Russian Investment Projects
Reported by Alexander Tovb in Moscow
The European Bank for Reconstruction and Development (EBRD) has adopted a new strategy for the Russian Federation to give more priority to economic diversification, supporting the real sector of the economy, promoting energy efficiency, strengthening domestic capital markets and funding infrastructure renewal.
The
EBRD confirmed its readiness to support the efforts of the Russian
government to accelerate privatisation of state-owned companies and to
help bring back into private ownership companies and banks in which the
state had increased its involvement due to the economic crisis. The
Bank will also consider pre-privatisation investments to restructure
state companies in order to increase their attractiveness to investors.
As the economic crisis made it more difficult for Russian companies to attract equity investments, the Bank will also provide risk capital to Russian companies and banks. Such investments allow the EBRD to use its role as a shareholder, and sometimes membership on the board of the companies, to exercise a positive influence on corporate governance standards.
The
new strategy also stresses development of a robust capital market
infrastructure to provide long-term rouble funding for critical
infrastructure projects, as well as to modernise the real economy.
The overall aim, in line with Russian government priorities, is to make Russian industry more competitive and to encourage a shift to a knowledge-based economy. This should help diversify the economy and reduce dependence on natural resources. Key to achieving this is the role of micro, small and medium-sized businesses (MSME's), a sector with huge potential for increasing Russian productivity, creating new jobs and promoting economic diversification.
EBRD has invested more in Russia than any of the other 29 countries in which it operates. Russia accounted for nearly 31 percent of the EBRD's total portfolio as of the end of 2008. Private sector deals represented 84 percent of all EBRD projects funded in Russia at the end of the first quarter of 2009. Equity investments at that moment accounted for 27 percent of the Bank's Russian portfolio.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. Today the EBRD uses investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. The Bank uses its close relationship with governments in the region to promote policies that will bolster the business environment. The EBRD only works in countries that are committed to democratic principles and respect for the environment. For more information, visit http://www.ebrd.com/index.htm.
The European Bank for Reconstruction and Development (EBRD) has adopted a new strategy for the Russian Federation to give more priority to economic diversification, supporting the real sector of the economy, promoting energy efficiency, strengthening domestic capital markets and funding infrastructure renewal.
As the economic crisis made it more difficult for Russian companies to attract equity investments, the Bank will also provide risk capital to Russian companies and banks. Such investments allow the EBRD to use its role as a shareholder, and sometimes membership on the board of the companies, to exercise a positive influence on corporate governance standards.
The overall aim, in line with Russian government priorities, is to make Russian industry more competitive and to encourage a shift to a knowledge-based economy. This should help diversify the economy and reduce dependence on natural resources. Key to achieving this is the role of micro, small and medium-sized businesses (MSME's), a sector with huge potential for increasing Russian productivity, creating new jobs and promoting economic diversification.
EBRD has invested more in Russia than any of the other 29 countries in which it operates. Russia accounted for nearly 31 percent of the EBRD's total portfolio as of the end of 2008. Private sector deals represented 84 percent of all EBRD projects funded in Russia at the end of the first quarter of 2009. Equity investments at that moment accounted for 27 percent of the Bank's Russian portfolio.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. Today the EBRD uses investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. The Bank uses its close relationship with governments in the region to promote policies that will bolster the business environment. The EBRD only works in countries that are committed to democratic principles and respect for the environment. For more information, visit http://www.ebrd.com/index.htm.