Support for socially important businesses and cooperation with governmental agencies
In the course of its investment activity and other financial operations, the Bank pays due attention to social factors that may have an impact on a broad spectrum of stakeholders. The Bank strives to provide financing for projects that contribute to increasing employment, wellbeing, and social security.
VTB pays special attention to projects aimed at developing the social and economic potential of the countries and regions of operation. The companies in the Group support the development of all industries along with high-priority socially important projects in the area of housing service and utilities, healthcare, and infrastructure construction.
VTB makes a solid contribution to the economy of the countries and regions where it operates through its close cooperation with governmental authorities to provide employment opportunities and thus produce employment income of people and tax revenues for municipal, regional, and state budgets.
In 2019, the VTB Group continued to closely work together with state-run enterprises in the regions of operation, including:
- VTB Bank entered into a cooperation agreement with Russian Railways, which stipulates the principles for further development of various scopes of cooperation. In 2019, VTB Leasing closed a deal to deliver 13,000 low-sided cars to Federal Freight, a subsidiary of Russian Railways. The Leasing Federation recognised the deal as the Lease Deal of the Year;
- The VTB Group and Russian Federal Centre for Development of Agricultural Products Export entered into a cooperation agreement providing joint consultancy and holding events aimed at promoting Russian products across external markets;
- VTB Bank won the bidding process arranged by Moscow Metro to design e-Troika, an electronic version of the Troika travel pass for smartphones;
- VTB Bank and Sodrugestvo Group signed a memorandum on strategic cooperation that provides for collaboration in the area of financing the company’s investment projects and arranging settlements and collaboration as part of export and import deals, including deals in the grain market, etc;
- In 2019, VTB Bank and Russian Post continued to further develop and improve the post offices in Russia via a joint venture, National Logistic Technologies. As part of this cooperation, VTB Bank provided cash management services for Russian Post offices for the period of corporate restructuring. Further, 38 new logistic post centres were set up that have an increased capacity owing to the use of state-of-the-art equipment. The volume of financing amounted to RUB 22 billion. In addition, VTB Leasing provided Russian Post with 70 baggage and mail cars on seven-year lease terms; the total amount of the contract was RUB 2.9 billion.
VTB continues to work on amendments to draft laws as they are being deliberated. In 2019, VTB representatives took part in follow-up revision of approximately 60 draft laws, including laws on personal data protection, fast payment system operation, development and implementation of electronic infrastructure, etc.
During the reporting period, VTB Bank took part in the following events aimed at promoting interaction with governmental authorities, including working meetings with the heads of member states of the Russian Federation:
- Board meeting of the Civic Chamber of the Russian Federation under the Russian Ministry of Finance;
- Meetings of legislative-development working groups under the Russian government and scientific and expert centres;
- Parliamentary proceedings, round-table discussions, working groups for proposed laws relevant for the Bank (expert councils for the dedicated committees with the State Duma and the Federation Council of the Russian Federation), and conventions and general meetings of the Association of Regional Banks of Russia;
- Working meetings sponsored by the Civic Chamber of the Russian Federation;
- Events of the Banking Commission under the Russian Union of Industrialists and Entrepreneurs and its other bodies;
- Meetings of the Administrative Office and Administration and conventions and nationwide associations of employers;
- Meetings of the Expert Council at the Main Office for Protection of Rights and Legal Interests of Commercial and Investment Entities, Moscow.
In 2019, VTB was included in the list of founders of Data Economy ANO. This will let the Bank foster a constructive dialogue with the government and take part in making key decisions related to developing advanced digital technology. Data Economy ANO is a major site for fostering dialogue between the government and business community and is focused on elaborating a common strategy and implementing measures stipulated by the Digital Economy national programme. As part of implementing the programme, representatives of the business community take part in work on six federal projects:
- HR for the Digital Economy;
- Data Infrastructure;
- Data Security;
- Digital Technology;
- Statutory Regulation;
- Digital Government.
Providing support to state and municipal authorities
The VTB Group believes it is necessary to extend cooperation with state and municipal authorities in the area of social and economic development of the regions where it operates.
In 2019, VTB Bank entered into 27 agreements in cooperation with a number of regions across Russia.
Developing Russia’s transport system
The VTB Group continued to support projects developing Russia’s transport sector. These projects chiefly aim to improve accessibility in the regions of operation and increase the mobility of local residents. Loans to transportation companies totalled RUB 673.6 billion.
|Project||Company||Description||Amount, RUB million||Effect of the project implementation|
| Construction of the M4 Don highway connecting Tambov, Volgograd, and Astrakhan and reconstruction of specific parts of the highway |
Construction and reconstruction of sections of the R22 Kaspiy highway
|Donaerodorstroy||Guarantee line||10,000||Traffic infrastructure improvement, development of additional transport routes|
|Construction of the M- 11 Neva (Moscow–Saint Petersburg) motorway||Russian Highways|| Credit limit |
| 10,200 |
|Traffic infrastructure transformation, development of additional transport routes Trunk infrastructure modernisation|
|Reconstruction of the Filyovskaya Line||Moscow Metro||Guarantee||4,861||Metro infrastructure improvement|
In 2019, VTB Bank also purchased the Novorossiysk Grain Terminal ; a 50% share in Gelendzhik Airport ; and a controlling interest in RusTransCom , a leading Russian operator of special-purpose grain, timber, and mineral fertiliser transportation cars.
Support for healthcare projects
VTB understands that developing social infrastructure is essential for living standards to increase in the regions of operation. Companies in the Group traditionally pay special attention to supporting healthcare projects and invest heavily in those projects involving the construction and renovation of healthcare institutions.
Financing of healthcare projects in 2019
- Credit agreement with Samara Medical Products Plant;
- Line of credit to the University Clinic Group to construct a family medicine centre operating as part of the compulsory health insurance system, designed to accommodate 10,000 patients;
- Loan to PetScan to purchase medical equipment for the Positron Emission Tomography (PET) Centre, the first healthcare institution in Southern Russia to use this diagnostic method for research;
- Line of credit for the Saint Petersburg Scientific and Research Institute of Vaccines and Serums (Enterprise for the Production of Bacterial Preparations) under Russia’s Federal Biomedical Agency (to produce flu vaccines as part of the National Calendar of Preventive Vaccinations and to upgrade the existing capacities for the production of flu drugs, allergens, and combined vaccines).
Additionally, the VTB Group facilitates the development of health care in the regions of Russia. In particular, in 2019, VTB Bank (Georgia) provided funds for the construction and purchase of equipment for hospitals and healthcare units in Tbilisi, Rustavi, Kutaisi, and Batumi.
Next Generation insurance product
VTB Bank has been financing multi-functional centres and the Mother and Child Group of Companies since 2011. In 2019, VTB Bank joined Mother and Child Group and SOGAZ Insurance Company to launch a fully packaged insurance product, a unique prenatal care and labour management programme across the Russian Mother and Child private clinics network.
The Mother and Child company has extensive experience in obstetrics and gynaecology. The company’s clinics are able to perform unique surgeries. The Next Generation project will enable even more residents of various Russian regions to seek medical advice from the leading private clinic.
Cooperation with companies in the housing construction sector
The availability of living accommodation is a top priority in the development of urban infrastructure for improving the quality of life. The VTB Group provides extensive support for housing construction projects in the regions of operation. In 2019, VTB focused on collaboration with real estate developers.
The amount of VTB funding for housing construction in the reporting period reached RUB 150 billion, which makes up 20% of the total amount of the Russian market.
Additionally, VTB Bank provided funds to improve urban amenities:
- Repurposing the building of the former Zotov Bread-Baking Plant No. 5 for museum and exhibition events;
- Renovating 39 cinemas in Moscow’s dormitory districts (463,000 square metres of usable floor area upon completion);
- Outfitting a park complex in a former industrial park in Moscow’s Shelepikhinskaya Naberezhnaya.
|Client||Project description||Type of product|| Amount, |
|Ingrad Group||RiverSky Housing Estate (Moscow)||Line of credit||21.7|
|RosStroyInvest Group||Terra Housing Estate (St. Petersburg)||Line of credit||5.6|
|Mavis Investment & Construction Group||Urbanist Housing Estate in Murino (Leningrad region)||Credit limit||3.1|
|RosStroyInvest Group||11 housing estate (Moscow)||Line of credit||2.0|
|Novy dom||Hotel complex in Kamchatka territory||Credit limit||2.0|
|SZ Drevo.Centre||Panova Park Housing Estate (Samara)||Credit limit||1.9|
|SZ ObjectStroy||Marshal Grad Housing Estate (Nizhny Novgorod)||Credit limit||1.6|
The VTB Group is implementing a number of projects aimed at developing Russia’s agricultural industry. VTB pays special attention to agricultural development, which is explained primarily by long-term benefits that the development of this sector provides in terms of import substitution and supporting local manufacturers.
The volume of loans provided to food and agricultural companies increased by 3.7% YoY, reaching RUB 427.7 billion.
In addition to actively working within the framework of the Russian Ministry of Agriculture’s preferential-loan programme, the Bank is also modernising its own offerings.
|Client||Project description||Type of product||Amount, RUB billion|
|RosAgroMarket Group||Construction of a wholesale distribution centre in Novosibirsk region||Line of credit||5.0|
|Resource||Development of a state-of-the-art manufacturing and logistics complex in Chelyabinsk region||Line of credit||2.5|
|Russian Cotton investment project||Construction of irrigation systems and purchase of equipment for irrigation systems||Line of credit||1.5|
|Volga Grain Group||Construction of two grain elevators for storage and sale of grain, expansion of territories intended for sowing of grains, oilseed, and technical crops||Credit limit||1.0|
|Master Mushroom||Construction of a full-service farm for growing champignons in Kaluga region||Line of credit||1.2|
|Dolina Solntsa||Completion of the second phase of greenhouse complex construction in Stavropol territory||Line of credit||0.9|