FEDF Increases Investments in the Projects Implemented in the Russian Far East by 54% in 2019 up to RUB 16.4 bln

The investments of the Far East and Arctic Region Development Fund (FEDF, affiliated with VEB.RF Group) in infrastructural and industrial projects in the macroregion grew by 54% up to RUB 16.4 bln at year-end 2019. Since 2015, the Fund has invested a total of RUB 59.6 bln in 17 projects (net of completed projects), including RUB 46.9 bln that has already been made available to initiators in accordance with the financing schedule. Total investments in the projects supported by the FEDF have exceeded RUB 477 bln.

Last year saw the commissioning of infrastructure facilities of strategic importance for the Russian Far East erected with assistance from the FEDF: the passenger terminal in the Khabarovsk Airport (the project was co-financed by VEB.RF) and the new Sakhalinskaya GRES-2 power plant. In December, the Amur Region launched Russia’s first production facility for soybean isolate. Implementation of major industrial projects has been launched in the Primorye and Khabarovsk Territories — construction of a natural gas chemical plant and development of the porphyry copper-gold deposit. Financing under the Affordable Loans for SMB program has been increased. This program made it possible to create over 850 small and medium business projects in the Russian Far East. 

The efforts to implement digital facilities for investors is continuing. To improve the efficiency and transparency of the industry, a digital platform for the forest industry is currently under development. This project is based on a successful experience of the online facility for investors in aquaculture in the Far East. 

New enterprises and infrastructure facilities will ensure a major increase in tax revenues for the budget, GDP growth, and new jobs. Five major industrial and infrastructural projects based in the FEDF have been recently included by the experts of the Far-Eastern Division of the Russian Academy of Sciences in the list of ten best-performing projects in the Russian Far East for their multiplier effect on area development. “The investments made by the Fund in its capacity of a public development institution both provide an important financial leverage at the start-up stage and make it possible for our partners to attract manifold larger amounts of additional blended financing on favorable terms from our shareholder VEB.RF, major Russian bank syndicates, and foreign investors”, said Alexei Chekunkov, CEO of the FEDF. 

In 2020, the Fund’s capital amounting to RUB 60 bln will be increased by more than a third due to the scheduled additional increase of the capital provided for by the 2020 federal budget law. This money along with refunds and interest income under the extended loans will make it possible to finance new projects in the Far Eastern Federal District and in the Arctic Region. The Fund will allocate a total of RUB 15 bln to the Arctic projects.