IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

state-controlled

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 29 Mar 2016 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 29 March 2016 a meeting of the Supervisory Board of the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" was held. The Russian Prime Minister Dmitry Medvedev has announced that Vneshekonombank will receive a bailout of 150 billion RUB (ca. 2.2 billion USD).
 
Concretely Mr Medvedev announced that: 'a decision for additional capitalisation of the Bank at the amount of 150 billion RUB has been taken. This money will help to ensure in 2016 the financial stability of the Bank, and to meet bank's liabilities related to foreign borrowing in the capital markets. We have made this decision in the framework of the general action plan of the Government to ensure sustainable socio-economic development of our country in the current year'.

The reasons for this state support are the financial difficulties Vneshekonombank (VEB) experienced after Western sanctions cut its access to international lending in 2014. Since VEB finances large-scale state projects, for example, Russia's Sochi Winter Olympics and other politically-driven projects, the Western sanctions led to VEB's struggle to repay its debts.

AFFECTED COUNTRIES

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