Under the agreement, VEB, which acts both as a bank and as the Russian government's debt servicing agent, will be able to open a 200 million euro credit line from HSBC to fund medium and long-term projects for importing technical and machine products.
"The agreement will provide, first and foremost, support to those sectors of the Russian economy which account for Russia's exports," VEB Chairman Vladimir Dmitriyev said at the signing ceremony.
The agreement will be realized as new projects appear that need support from HSBC, Dmitriyev said. "We have several projects that could be carried out using resources provided by HSBC." In particular, the credit could be used to buy British Rolls Royce engines for Russian Tu-204 planes, which would then be exported, he said.
"HSBC is working both with the Russian government, providing credit, and with major Russian banks. The bank has a significant presence on the Russian market, being the organizer of several projects. We therefore maintain a strong relationship with HSBC and believe that [this relationship] will successfully develop in the future," Dmitriyev said.
Richard Cole, head of the global project and export finance group of HSBC, who signed the agreement on behalf of HSBC, stressed the importance of the Russian market, saying that HSBC's operations in Russia were a strategic priority for the bank.
The credit will be guaranteed by leading European export credit agencies, without a sovereign guarantee from the Russian government.
