VEB.RF

In 1988, the Foreign Trade Bank of the USSR was renamed Vnesheconombank of the USSR ("Bank for Foreign Economic Affairs of the USSR").{{cite news|title=History|url=http://www.veb.ru/en/about/history/|access-date=3 June 2017|publisher=Vnesheconombank|archive-date=31 May 2017|archive-url=https://web.archive.org/web/20170531032056/http://www.veb.ru/en/about/history/|url-status=live}} With the dissolution of the Soviet Union in 1991, the operations of the Soviet Vnesheconombank outside of the RSFSR were nationalized by the respective post-Soviet States. On 17 December 1991, Vnesheconombank accounts in Russia were frozen because of lack of funds.{{cite web |url=http://old.veb.ru:80/ru/about/history/ |title=ВЭБ // О Банке // История |trans-title=VEB // About the Bank // History |language=ru |work=old.veb.ru |date=May 2012 |access-date=8 April 2022 |archive-date=11 May 2012 |archive-url=https://web.archive.org/web/20120511082915/http://old.veb.ru:80/ru/about/history/ |url-status=dead}}

For approximately seven years during the 1990s, the Kremlin's obshchak («общак») or black cash was stored in the vaults of Vnesheconombank (VEB) because Viktor Gerashchenko stated that in 1992 VEB became an agency for the return of the state debt of the USSR due to a decree by the Supreme Soviet: "Vnesheconombank does not have a central banking license. It does not need it, since it does not conduct any commercial operations." He also added, "Due to the lack of a license, this is the only Russian bank that the Central Bank does not check – it does not have the right."{{cite news |last=Наталья |first=Морарь (Morar, Natalia) |author-link=Natalia Morar |url=https://newtimes.ru/articles/detail/6628/ |title=«ЧЕРНАЯ КАССА» КРЕМЛЯ |trans-title=THE KREMLIN'S BLACK CASH REGISTER |language=ru |work=The New Times |date=10 December 2007 |access-date=13 September 2022 |quote=«У Внешэкономбанка нет лицензии ЦБ на банковскую деятельность. Она ему и не нужна, поскольку никаких коммерческих операций он не проводит, — говорит бывший глава Банка России. — В связи с отсутствием лицензии это единственный российский банк, который Центробанк не проверяет — не имеет права».}}

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

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.

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.{{Cite web |url=http://www.veb.ru/common/img/uploaded/files_list/VEB_annual_2006_eng.pdf |title="VEB Annual Report 2006" |access-date=2008-01-24 |archive-url=https://web.archive.org/web/20101201213105/http://veb.ru/common/img/uploaded/files_list/VEB_annual_2006_eng.pdf |archive-date=2010-12-01 |url-status=dead }}

In April 2007, Russia's State Duma passed the federal law "On Bank for Development," which regulated VEB's legal conditions and made it a state development bank.{{cite web|title=VEB Profile|url=http://www.veb.ru/en/about/|website=VEB|access-date=29 November 2014|archive-date=1 November 2014|archive-url=https://web.archive.org/web/20141101151243/http://www.veb.ru/en/about/|url-status=live}}[http://www.veb.ru/en/about/norm/law/ "Law on bank for development"] {{Webarchive|url=https://web.archive.org/web/20080225135129/http://www.veb.ru/en/about/norm/law/ |date=2008-02-25 }}, VEB

Vladimir Putin increased lending when he became the VEB's chairman of its supervisory board in 2008.{{cite news|url=https://www.nytimes.com/2017/06/04/business/vnesheconombank-veb-bank-russia-trump-kushner.html|title=Bank at Center of U.S. Inquiry Projects Russian 'Soft Power'|last1=Protess|first1=Ben|date=5 June 2017|work=The New York Times|access-date=5 June 2017|last2=Kramer|first2=Andrew E.|page=A1|last3=McIntire|first3=Mike|archive-date=5 June 2017|archive-url=https://web.archive.org/web/20170605023004/https://www.nytimes.com/2017/06/04/business/vnesheconombank-veb-bank-russia-trump-kushner.html|url-status=live}}{{efn|By law in 2008, the Russian Prime Minister is VEB's chairman of its supervisory board.}} By late 2009, VEB quadrupled its assets to nearly 2 trillion rubles ($65 billion),{{cite news |last1=Hobson |first1=Peter |title=How Putin's Bank Became Russia's $20 Billion Problem |url=https://themoscowtimes.com/articles/how-putins-bank-became-russias-20-billion-problem-52049 |access-date=6 October 2018 |work=The Moscow Times |date=3 March 2016 |language=en |archive-date=1 July 2018 |archive-url=https://web.archive.org/web/20180701193813/https://themoscowtimes.com/articles/how-putins-bank-became-russias-20-billion-problem-52049 |url-status=live }} it was seen by the government as an off-budget fund, used to put off budget expenses.

In July 2014, the United States Department of the Treasury imposed economic sanctions that greatly restricted U.S. persons and entities from providing doing business with VEB after the 2014 pro-Russian unrest in Ukraine.U.S. Department of Treasury. [http://www.treasury.gov/press-center/press-releases/Pages/jl2572.aspx "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"] {{Webarchive|url=https://web.archive.org/web/20170208065508/https://www.treasury.gov/press-center/press-releases/Pages/jl2572.aspx |date=2017-02-08 }} 16 July 2014. Between 2014 and 2017, the Russian Ministry of Finance spent $10 billion on the bank.

VEB has suffered massive losses in 2014–2015, leading to a 330 billion rubles government bailout in 2015,{{cite news|title=How bad is it really at Russia's VEB?|url=http://www.intellinews.com/comment-how-bad-is-it-really-at-russia-s-veb-100709/|access-date=12 April 2017|work=bne IntelliNews|archive-date=13 April 2017|archive-url=https://web.archive.org/web/20170413071008/http://www.intellinews.com/comment-how-bad-is-it-really-at-russia-s-veb-100709/|url-status=live}} followed by 150 billion rubles in 2016 and a similar amount planned for 2017.{{cite news|title=Russia's VEB chairman sees difficulties redeeming debt in 2017|url=https://www.reuters.com/article/us-russia-veb-idUSKBN1351DF|access-date=12 April 2017|work=Reuters|date=10 November 2016|archive-date=13 April 2017|archive-url=https://web.archive.org/web/20170413070756/http://www.reuters.com/article/us-russia-veb-idUSKBN1351DF|url-status=live}}{{cite news|title=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|url=https://www.treasury.gov/press-center/press-releases/Pages/jl2572.aspx|access-date=3 June 2017|publisher=United States Department of the Treasury|date=16 July 2014|archive-date=19 May 2020|archive-url=https://web.archive.org/web/20200519141546/https://www.treasury.gov/press-center/press-releases/Pages/jl2572.aspx|url-status=live}} VEB was the main lender for the 2014 Winter Olympics, and many of the loans originating from the games missed original returns forecasts, or had to be restructured.{{cite news |last1=Voronova |first1=Tatiana |title=Russia's VEB to transfer Globex to the state as it tackles Sochi... |url=https://www.reuters.com/article/us-russia-veb-globex/russias-veb-to-transfer-globex-to-the-state-as-it-tackles-sochi-olympics-legacy-sources-idUSKBN1ED1FX |access-date=6 October 2018 |work=Reuters |date=19 December 2017 |archive-date=6 October 2018 |archive-url=https://web.archive.org/web/20181006154849/https://www.reuters.com/article/us-russia-veb-globex/russias-veb-to-transfer-globex-to-the-state-as-it-tackles-sochi-olympics-legacy-sources-idUSKBN1ED1FX |url-status=live }}

In March 2016, the bank was promised a $2.2 billion bailout from the Russian government.{{cite news|last1=Kottasova|first1=Ivana|title=The latest Russian bank bailout is not like all the rest|url=https://money.cnn.com/2016/03/30/investing/russia-veb-bank-bailout/index.html|access-date=27 June 2017|work=CNNMoney|date=30 March 2016|archive-date=2 June 2017|archive-url=https://web.archive.org/web/20170602112554/http://money.cnn.com/2016/03/30/investing/russia-veb-bank-bailout/index.html|url-status=live}} Sergey Gorkov, a former senior executive at Sberbank, was appointed to lead VEB and come up with a turnaround strategy, which included the sale of non-core assets.{{cite news|title=Kushner meeting shines spotlight on Russian bank|url=https://www.ft.com/content/14c0cf6a-5409-11e7-80b6-9bfa4c1f83d2|access-date=27 June 2017|work=Financial Times|archive-date=25 June 2017|archive-url=https://web.archive.org/web/20170625050922/https://www.ft.com/content/14c0cf6a-5409-11e7-80b6-9bfa4c1f83d2|url-status=live}} The government originally offered the position to German Gref, who turned down the job.

In March 2017, Ukraine imposed sanctions on Vnesheconombank (and other Russian state-owned banks operating in Ukraine: Sberbank, VTB Bank, VS Bank, Prominvestbank, and BM Bank) as part of its continued sanctions on Russia for its annexation of Crimea and involvement in the War in Donbas.{{cite news | last = Пороше́нко | first = Петро́ Олексі́йович | author-link = Petro Poroshenko | title = УКАЗ ПРЕЗИДЕНТА УКРАЇНИ №63/2017: Про рішення Ради національної безпеки і оборони України від 15 березня 2017 року Про застосування персональних спеціальних економічних та інших обмежувальних заходів (санкцій) | url = http://www.president.gov.ua/documents/632017-21474 | work = President of Ukraine website | language = uk | trans-title = DECREE OF THE PRESIDENT OF UKRAINE No. 63/2017: On the decision of the Council of National Security and Defense of Ukraine dated March 15, 2017 "On the Application of Personal Special Economic and Other Restrictive Measures (Sanctions)" | date = March 15, 2017 | access-date = February 28, 2018 | archive-date = March 1, 2018 | archive-url = https://web.archive.org/web/20180301104215/http://www.president.gov.ua/documents/632017-21474 | url-status = live }}{{cite web | last = Пороше́нко | first = Петро́ Олексі́йович | author-link = Petro Poroshenko | title = Глава держави затвердив санкції щодо низки російських банків | url = http://www.president.gov.ua/news/glava-derzhavi-zatverdiv-sankciyi-shodo-nizki-rosijskih-bank-40418 | work = President of Ukraine website | language = uk | trans-title = The head of state has approved sanctions against a number of Russian banks | date = March 16, 2017 | access-date = February 28, 2018 | archive-date = March 8, 2018 | archive-url = https://web.archive.org/web/20180308061134/http://www.president.gov.ua/news/glava-derzhavi-zatverdiv-sankciyi-shodo-nizki-rosijskih-bank-40418 | url-status = live }} After that, the bank tried to sell its Ukrainian subsidiary; {{As of|2017|08|lc=y}} unsuccessfully.[https://www.unian.info/economics/2055479-ukraine-blocks-sale-of-subsidiaries-of-russias-sberbank-veb-media.html Ukraine blocks sale of subsidiaries of Russia's Sberbank, VEB – media] {{Webarchive|url=https://web.archive.org/web/20170802210652/https://www.unian.info/economics/2055479-ukraine-blocks-sale-of-subsidiaries-of-russias-sberbank-veb-media.html |date=2017-08-02 }}, UNIAN (29 July 2017) At Sochi in February 2018, Vnesheconombank's Sergey Gorkov said they hoped to sell its Ukrainian subsidiary, Prominvestbank, by May 2018.{{cite web|last=Talant|first=Bermet|title=Russian state banks leaving Ukraine because of sanctions, attacks by nationalists|url=https://www.kyivpost.com/business/russian-state-banks-leaving-ukraine-sanctions-attacks-nationalists.html|newspaper=Kyiv Post|date=20 February 2018|access-date=26 February 2018|archive-date=23 February 2022|archive-url=https://web.archive.org/web/20220223122033/https://www.kyivpost.com/business/russian-state-banks-leaving-ukraine-sanctions-attacks-nationalists.html|url-status=live}}

In 2017, the bank's debt was $17 billion, including $14.2 billion in Ukraine. In January 2017, Gorkov released the bank's "Strategy 2021," which predicted relief from sanctions, resuming borrowing in the United States, and shifting risks to the government's budget. According to a report the New York Times published in May 2017, 40% of the bank's loans were at risk of default.

In May 2018, Igor Shuvalov replaced Gorkov as VEB's new chairman.{{cite news |last1=Pismennaya |first1=Evgenia |title=Putin's Sanctions-Hit VEB Is Said to Plan Appeal for $16 Billion |url=https://www.bloomberg.com/news/articles/2018-07-03/putin-s-sanctions-hit-piggy-bank-is-said-to-plan-appeal-for-cash |access-date=6 October 2018 |work=Bloomberg |date=3 July 2018 |archive-date=6 October 2018 |archive-url=https://web.archive.org/web/20181006154846/https://www.bloomberg.com/news/articles/2018-07-03/putin-s-sanctions-hit-piggy-bank-is-said-to-plan-appeal-for-cash |url-status=live }} In July 2018, the bank requested a further $16 billion bailout from the Russian government. In October 2018 the bank announced plans to rebrand, changing its denomination into 'National Development Institute', and confirming it would be granted 600 billion rubles ($9.1 billion) in subsidies from the federal budget by 2024, in addition to the 125 billion rubles received in 2018.{{cite news |title=Russia's Vnesheconombank revamped into VEB.RF, to get up to $22bn support |url=http://www.intellinews.com/russia-s-vnesheconombank-revamped-into-veb-rf-to-get-up-to-22bn-support-151094/ |work=BNE Intellinews |date=31 October 2018 |access-date=31 October 2018 |archive-date=1 November 2018 |archive-url=https://web.archive.org/web/20181101095603/http://www.intellinews.com/russia-s-vnesheconombank-revamped-into-veb-rf-to-get-up-to-22bn-support-151094/ |url-status=live }}

The net profit for the 2018 amounted to 3.85 billion rubles after a loss to 200.4 billion rubles a year earlier.{{Cite web|url=https://1prime.ru/finance/20190515/829977536.html|title=Чистая прибыль ВЭБа по РСБУ в 2018 г - 3,85 млрд руб после убытка годом ранее|website=ПРАЙМ|date=15 May 2019|language=ru|access-date=9 August 2019|archive-date=26 May 2019|archive-url=https://web.archive.org/web/20190526170704/https://1prime.ru/finance/20190515/829977536.html|url-status=live}} The net profit for the first quarter of 2019 17.6 billion rubles.{{Cite web|url=https://tass.ru/ekonomika/6495476|title=Чистая прибыль группы ВЭБ.РФ за первый квартал составила 17,6 млрд рублей|website=ТАСС|access-date=2019-08-09|archive-date=2019-08-09|archive-url=https://web.archive.org/web/20190809123436/https://tass.ru/ekonomika/6495476|url-status=live}}

In 2019, after a long period when VEB.RF, instead of financing new projects, was engaged in servicing distressed assets, new investment projects appeared in the portfolio of the state corporation. In the framework of VEB.RF went into the development of the Udokan's copper deposit ($490 million), the production of sulfuric acid at the "KuibyshevAzot" and capacity expansion of "Shchekinoazot" for the production of methanol (the total participation of the corporation 8.5 billion.).{{Cite news|url=https://www.vedomosti.ru/economics/articles/2019/06/09/803804-shuvalov-izmenil-veb|title=Как Шувалов за год изменил ВЭБ|last=Ведомости|date=2019-06-10|newspaper=Ведомости|access-date=2019-08-09|archive-date=2019-08-09|archive-url=https://web.archive.org/web/20190809123438/https://www.vedomosti.ru/economics/articles/2019/06/09/803804-shuvalov-izmenil-veb|url-status=live}} VEB.RF started financing the project of construction of six large-tonnage vessels at the Zvezda super-shipyard near Vladivostok. Also VEB.RF, Gazprombank and Sberbank announced the funding of the development of the Talitsky area of the Verkhnekamsk potash deposit in Perm.{{Cite web|url=https://www.rbc.ru/business/06/06/2019/5cf8bf359a79471f9d85e97c|title="Акрон" привлек $1,7 млрд на свой крупнейший калийный проект|website=РБК|date=6 June 2019 |access-date=2019-08-09|archive-date=2019-08-29|archive-url=https://web.archive.org/web/20190829204158/https://www.rbc.ru/business/06/06/2019/5cf8bf359a79471f9d85e97c|url-status=live}} VEB.RF and Sberbank will provide a syndicated loan for the modernization of Novaport group's regional airports in six cities of Russia, and together with Rockwell Capital will build the largest pulp and paper mill in Siberia.

VEB.RF was sanctioned by the United Kingdom from 1 August 2014 in relation to Russia's activities in Crimea,{{cite web |title=CONSOLIDATED LIST OF FINANCIAL SANCTIONS TARGETS IN THE UK |url=https://assets.publishing.service.gov.uk/media/624d9921d3bf7f6010c0ecd1/InvBan.pdf |date=6 April 2022}} and was sanctioned by New Zealand in relation to the 2022 Russian invasion of Ukraine.{{cite web |title=Russia Sanctions Regulations 2022 |url=https://www.legislation.govt.nz/regulation/public/2022/0074/latest/LMS659655.html |access-date=11 February 2023}}

In February 2022, due to Russia's invasion of Ukraine, together with its subsidiaries, it was included in the US sanctions list, SDN, which provides for the maximum possible restrictions and a complete freeze of assets.{{Cite web |title=Что значат санкции США против ВЭБа — главного института развития в России |url=https://www.rbc.ru/finances/23/02/2022/6215ecb39a7947080e4a282d |access-date=2022-07-12 |website=РБК |date=23 February 2022 |language=ru}}{{Cite web |date=2022-02-22 |title=Remarks by President Biden Announcing Response to Russian Actions in Ukraine |url=https://bidenwhitehouse.archives.gov/briefing-room/speeches-remarks/2022/02/22/remarks-by-president-biden-announcing-response-to-russian-actions-in-ukraine/ |url-status=live |archive-url=https://web.archive.org/web/20220223034835/https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/02/22/remarks-by-president-biden-announcing-response-to-russian-actions-in-ukraine/ |archive-date=2022-02-23 |access-date=2022-02-22 |website=The White House |language=en-US}}{{Cite web |title=U.S. Treasury Imposes Immediate Economic Costs in Response to Actions in the Donetsk and Luhansk Regions |url=https://home.treasury.gov/news/press-releases/jy0602 |url-status=live |archive-url=https://web.archive.org/web/20220223000050/https://home.treasury.gov/news/press-releases/jy0602 |archive-date=2022-02-23 |access-date=2022-02-23 |website=U.S. Department of the Treasury |language=en}} The bank was also disconnected from the SWIFT interbank payment system, and included in the sanctions list of Singapore.{{Cite web |url=https://tass.ru/ekonomika/13972953 |access-date=2022-07-12 |website=tass.ru|title=Сингапур ввел санкции в отношении банков ВТБ, "Россия", Промсвязьбанк и ВЭБ.РФ - ТАСС }}

Since May 2018, the chair of VEB.RF has been Igor Shuvalov .{{Cite web|url=http://en.kremlin.ru/events/president/news/57542|title=Igor Shuvalov appointed Vnesheconombank Chairman|website=President of Russia|date=24 May 2018 |language=en|access-date=2019-08-07|archive-date=2019-08-14|archive-url=https://web.archive.org/web/20190814132739/http://en.kremlin.ru/events/president/news/57542|url-status=live}} The highest governing body of VEB.RF is the Supervisory Board, itself chaired by the Russian Prime Minister.{{Cite web|url=https://veb.ru/en/about-us/|title=About us|website=veb.ru|access-date=2019-08-07|archive-date=2019-08-05|archive-url=https://web.archive.org/web/20190805143606/https://veb.ru/en/about-us//|url-status=live}}

VEB.RF coordinates development institution in Russia,{{Cite web|url=https://forumvostok.ru/en/partners/business-networking-area-partners/|title=Business networking area partners|website=forumvostok.ru|access-date=2019-08-07}} and is a Russian state corporation with the goal of supporting and developing the Russian economy. According to a filing pursuant to the Foreign Agents Registration Act, it is not owned, nor directed, by the government or any political party.{{Cite web |title=Exhibit A to Registration Statement Washington |url=https://efile.fara.gov/docs/6393-Exhibit-AB-20190725-6.pdf |url-status=live |archive-url=https://web.archive.org/web/20190807110219/https://efile.fara.gov/docs/6393-Exhibit-AB-20190725-6.pdf |archive-date=2019-08-07 |access-date=2019-08-07}}

Previous chairs of Vnesheconombank include Tomas Alibegov, who was First Deputy Chairman and acting Chairman 1989–1997, Andrey Kostin (1996–2002),{{Cite web|url=https://www.finnews.am/en/personnel/6048-andrey-kostin|title=ANDREY KOSTIN|last=Lia|website=www.finnews.am|language=en-gb|access-date=2019-08-07|archive-date=2019-08-07|archive-url=https://web.archive.org/web/20190807094242/https://www.finnews.am/en/personnel/6048-andrey-kostin|url-status=live}} Vladimir Dmitriev (2004–2016),{{Cite web|url=https://www.banki.ru/news/engnews/?id=8719705|title=Sergei Gorkov appointed to chair board at Vnesheconombank|website=Банки.ру|access-date=2019-08-07|archive-date=2020-05-26|archive-url=https://web.archive.org/web/20200526003117/https://www.banki.ru/news/engnews/?id=8719705|url-status=live}} and Sergei Gorkov (2016–2018).{{Cite web|url=http://en.special.kremlin.ru/events/president/news/57538|title=President of Russia|website=en.special.kremlin.ru|access-date=2019-08-07|archive-date=2019-08-07|archive-url=https://web.archive.org/web/20190807094241/http://en.special.kremlin.ru/events/president/news/57538|url-status=live}}

{{Portal|Banks|Russia}}

• EXIAR
• List of national development banks

{{Notelist}}

{{Reflist|30em}}

• [http://www.veb.ru/en/ Official homepage]
• [https://web.archive.org/web/20090213081231/http://veb.lgg.ru/en/about/history/ VEB history website]
• [https://web.archive.org/web/20121201011702/http://www.cbonds.info/eng/organisations/organisation.phtml/params/id/867 Financial information]

{{Authority control}}

{{Coord|55|46|19.03|N|37|38|41.27|E|display=title}}

{{DEFAULTSORT:VEB.RF}}

Category:Companies based in Moscow

Category:Russian state corporations

Russia

Category:Government-owned banks of Russia