Andrey Kostin: ‘VTB is planning to finance large projects of Tatarstan petrochemistry at billions of dollars’

Key petrochemistry

Rustam Minnikhanov and Andrey Kostin told about the details of the agreement to the journalists. Answering the question of Realnoe Vremya, the president-chairperson of the board of VTB Bank told that it is a master agreement, but in the discussion with the President of Tatarstan they discussed specific and large projects of investment character. 'First of all, it is petrochemistry, where the VTB Bank is planning to finance large projects at billions of dollars. It is long-term projects for 10-15 years. They refer to the key directions of the region's development, we will participate in them with great pleasure. It is the projects of TAIF, Tatneft, other large enterprises,' noted Andrey Kostin.

Also, the agreement stipulates the cooperation of the bank with the agricultural complex of Tatarstan, which according to the estimates of VTB, is successfully developing. Especially important this cooperation is in the context of import substitution, believes the banker. 'We will continue the cooperation with our usual partners – KAMAZ, Kazan Helicopters, and other enterprises of defence industry. The special topic is the development of small and medium businesses, including on the state programmes. These are main four topics, which we have discussed with the President of Tatarstan and outlined a number of practical steps,' said Andrey Kostin.

The agreement stipulates the crediting of the investment projects in petrochemistry, mechanical engineering, agricultural complex, as well as the support of small and medium businesses

Rustam Minnikhanov reminded that VTB Bank since 2002 is the strategic partner of the Republic. He said that the directors of KAMAZ and Kazan Helicopters also participated in the meeting. For them VTB is the basic bank which crediting the strategic for the Republic enterprises.

The figure can be increased two-threefold

VTB takes the third place by the volumes of credit resources placed in Tatarstan. In 2015, VTB Bank issued the Tatarstan companies the credit funds at the amount of 50.2 billion rubles. 'It's a lot,' said the President of Tatarstan, 'but this figure can be increased two-threefold'. He said that that day there were presented specific projects in the field of petrochemical industry, mechanical engineering, agroindustrial complex, chemical production. Also, the Republic has the opportunity to attract VTB to the site of the territory of advancing socio-economic development (TOSER) in the monocity Naberezhnye Chelny. Rustam Minnikhanov also focused on other areas: 'We talked about the bank's participation in the crediting of the projects in the special economic zone Alabuga and in the special zone Innopolis.'

VTB Bank will continue to credit the small and medium businesses in Tatarstan. 'The first loan, which Tatarstan received in the line of SME Corporation, was received from VTB Bank,' noted the President of Tatarstan. 'And today we have filed the application for 5 billion rubles for these enterprises.'

The press service of the President of Tatarstan reports that 'the parties have agreed to promote the realization of the programme of state support of bussinesses and projects of the territory of advanced social and economic development (TOSER) in the Republic of Tatarstan. Among the development directions – the joint work in the field of implementation of investment, innovative and scientific-technical projects.'

Rustam Minnikhanov: 'The first loan, which Tatarstan received in the line of SME Corporation, was received from VTB Bank. And today we have filed the application for 5 billion rubles for these enterprises.'

The client is being 'treated'

Andrey Kostin also answered the question about the volume of overdue debt on the loans issued to Tatarstan.

'Arrears on loans in Tatarstan is below the national average. The Tatarstan due to the government's attempts is one of the favourable regions. We have certain problems which we have discussed today with major clients of the bank. But they are being 'treated'. It is not a case when the client 'dies'. We need to find the right 'medicine', to determine the restructuring programmes. Today there are no cases where we had non-payment of money,' he said.

Earlier, the head of Directorate of VTB Bank in RT Maryam Davletshina reported that the credit portfolio of VTB in Tatarstan at the beginning of 2016 reached 42.2 billion rubles. The portfolio growth in 2015 was 63%. Out of this amount, medium business accounts for 10.6 billion rubles, large businesses — 31.6 billion rubles. In the structure of credit portfolio the share of defence industry is 40%, agriculture — 6%. Another 18% of the loans in the portfolio accounts for machinery engineering enterprises, 10% — for the enterprises of food industry, 15% — trade, 11% — on other sectors.