Vnesheconombank

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Vnesheconombank (VEB) (Russian: Внешэкономбанк (ВЭБ)) is a Russian state corporation (a non-profit) that is a former Soviet bank. Vnesheconombank has no Russian banking license (i.e. Vnesheconombank is not a bank) and is not subject to the law on banks and banking activities.[1] Translated to the English language, its name means "Bank of Foreign Economic Activity", though it is commonly called the "Russian Development Bank", and it refers to itself as "the state corporation Bank for Development and Foreign Economic Affairs”.

The Russian government uses VEB to support and develop the Russian economy and to manage Russian state debts and pension funds. It is a part in the government's plan to diversify the Russian economy, and to do so receives funds directly from the state budget. The bank was instituted in 1922.

From 2005 to 2006, both the assets and liabilities of the bank doubled from around $6 billion to $12 billion, and the income rose from $239 million to $301 million.[2]

Organisation[edit]

Dmitriev Vladimir Alexandrovich has been Chairman since 2004.

History[edit]

VEB was first established in 1922 as "Ruskombank" (or "Russian Commercial Bank"), and in 1924 it was renamed "Vneshtorgbank of the USSR" (or "Bank for foreign trade of the USSR"), a joint stock bank. It was finally renamed "Vnesheconombank of the USSR" (the "Bank of Foreign Economic Affairs of the USSR") in 1988.[3]

In 2002, Vnesheconombank was restructured and it stepped up its efforts in servicing government programs, reduced the scope of its commercial business and gave a higher priority to supporting the government's structural reforms.[3]

In April 2002, VEB was appointed Vnesheconombank agent for investing temporarily free Pension Fund's assets in securities denominated in foreign currency, and in January 2003 a special structural subdivision to handle pension funds was formed; VEB was appointed the "State Trust Management Company" responsible for investing Russia's pension funds.[3]

In April 2007 Russia's State Duma passes the federal law "On Bank for Development", which regulated the VEB's legal conditions.[4][5]

In July 2014 the United States Department of the Treasury imposed sanctions that prohibit U.S. persons from providing new financing to VEB after the 2014 pro-Russian unrest in Ukraine.[6]

References[edit]

  1. ^ http://www.gazeta.ru/tags/vneshekonombank.shtml
  2. ^ "VEB Annual Report 2006"
  3. ^ a b c "VEB history"
  4. ^ "VEB Profile". VEB. Retrieved 29 November 2014. 
  5. ^ "Law on bank for development", VEB
  6. ^ U.S. Department of Treasury. "Announcement of Treasury Sanctions on Entities Within the Financial Services and Energy Sectors of Russia, Against Arms or Related Materiel Entities, and those Undermining Ukraine's Sovereignty" 16 July 2014.

External links[edit]