Russia: EIB increases support for SMEs and mid-caps by EUR 200 million

The European Investment Bank (EIB) is lending EUR 200 million to VTB Bank to finance SME and mid-cap undertakings in the Russian Federation, supporting the development of the private sector and contributing to sustainable social and economic development.

Mr Wilhelm Molterer, EIB Vice-President responsible for lending operations in Russia, stated: “The loan signed today will improve the availability of long-term finance to SMEs and mid-cap companies that are suffering from a scarcity of credit and relatively high interest rates. EIB finance will help implement projects that contribute to increased sectorial diversification of the country’s economy.”

The loan - the first EIB operation with VTB Bank - brings EIB lending commitments in Russia to some EUR 1.6 billion since the start of the Bank’s operations in the country in 2003. Some EUR 950 million of this amount takes the form of credit lines designed to finance smaller projects implemented mainly by SMEs and mid-caps.

The credit line is being extended in the framework of the EU-Russia Partnership for Modernisation launched at the 25th EU-Russia Summit in 2010. This serves as a flexible framework for encouraging reform, boosting growth and fostering competitiveness. All of these objectives are supported by promoting small and medium-sized enterprises and developing the exchange of experience between the EIB and Russian financial institutions on the subject of financial services for SMEs and mid-caps. To date, the EIB has extended seven loans to support the Partnership for Modernisation, for a total amount of EUR 1 billion.