10/23/2019 | Press release | Distributed by Public on 10/23/2019 08:37
October 23, 2019, Sochi - At the Russia-Africa Summit, Sberbank PJSC, Russian Export Center JSC, or REC, State Development Corporation VEB.RF and Gemcorp Capital LLP have signed a master service agreement to create a framework to finance the trade between Russia and African countries. Worth USD5 bln, the agreement signifies Russian and African parties' need for joint financial solutions.
The agreement is intended to develop cooperation with African countries by establishing a framework to finance joint foreign economic projects and unlock opportunities to increase Russian exportation volume by providing financial assistance to supply Russian goods to Africa, including to Angola, Ethiopia, Mozambique, Zimbabwe and other African countries.
Alexander Vedyakhin, First Deputy Chairman of the Executive Board, Sberbank:
'The agreement intends to create an infrastructure to promote Russian exportation to African countries and finance Russian goods supplies to Africa. Sberbank, VEB.RF, Gemcorp Capital LLP and REC plan to offer financial support and counsel to projects of Russian exporters across different areas, such as machinery equipment, agricultural products, fertilizers and medical products. In recent years, Russian export to Africa was growing dynamically, and owing to the insurance support from REC, loans will be more affordable for Russian exporters and their foreign partners.'
Andey Slepnyov, General Director, REC,
'The platform will position us to properly minimize risks when organizing the trade with countries, including important supplies for the international community. In our turn, we intend to engage at least ten countries and open a trade corridor to Africa with their help. For Russian businesses, it will create a unique opportunity to scale their presence in the region systematically and strengthen their positions in one of the world's promising and rapidly developing markets by opening hi-tech Russian exports for it.'
Daniil Algulyan, Deputy Chairman, VEB.RF,
'Russia is interested in new markets and projects, while Africa has a huge development potential in the next decades. Supporting Russian non-commodity exports is one of the key areas for VEB. Today, VEB's portfolio backing Russian exports to Africa exceeds USD 2 bln. We are ready to help Russian companies in promoting their goods and services on this market. At the moment, VEB is considering a range of initiatives in transportation development, including railways. We're also looking into projects on supplying Russian equipment to create industry production. Energy, chemical, mining, pharmaceutical, health care industries, and education may become priority areas. One of our key partners in Africa is Afreximbank.'