- Region: Europe
- Machinery and Equipment
- Export Loans
June 20, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on June 17th a loan agreement totaling up to 1,008.55 million US dollars with Vnesheconombank (VEB) in Russia. The loan is co-financed with Sumitomo Mitsui Banking Corporation and The Bank of Tokyo-Mitsubishi UFJ, Ltd.
- This loan will be used to finance the purchase of machineries and equipments by Joint Stock Company Ammoni in Russia, from Mitsubishi Heavy Industries, Ltd. and Sojitz Corporation for constructing a urea fertilizer plant in Mendeleevsk, the Republic of Tatarstan in the Russian Federation.
- The Russian economy suffered a major plunge in growth in 2009, resulting from the impact of the global financial crisis. However, since 2010, with capital investment and consumption holding ground, the economy has recovered gradually, resulting in a modest rebound. The International Monetary Fund (IMF) has projected 4% real GDP growth in 2010. Japanese firms are drawn to Russia, considering it a promising country for conducting business operations over the long term.*2 This Project will help make effective use of Russia’s abundant natural gas resources. Going forward, it is also expected to make way for the expansion of business opportunities for Japanese firms exporting fertilizer production facilities to Russia.
- JBIC has been engaged in close discussion with VEB based on the memorandum of understanding (MOU) for business cooperation signed with VEB. It was this enduring effort that has led to the signing of this loan.*3 JBIC will continue to support the expansion of the export businesses from the Japanese firms targeting Russia.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 In the FY2010 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies, conducted in fiscal 2010, Russia ranked 5th in the category of promising countries for business development over the long term (in the next decade).
- *3 See Press Release on May 13, 2009.