A signing ceremony was held in the splendid Youssupov Palace, Saint Petersbourg, on 27 June 2003, where a credit agreement was entered into between Vneshtorgbank and Nordic Investment Bank (NIB), Helsinki, Finland.
Vladimir Dmitriev, Executive Vice President and Deputy Chairman, for Vneshtorgbank, and Claes de Neergaard, Chairman, and Jon Sigurdsson, President, for NIB, signed the agreement.
The agreement envisages opening a ?20 million credit line for a 15 year term on Vneshtorgbank involving long-term financing for environmental projects in north-western Russia. It is the first agreement concluded by NIB with a Russian commercial bank with no guarantees from the Russian Government.
The Agreement enables Vneshtorgbank to finance medium- and long-term projects intended to retrofit manufacturing capacities at key regional companies and also to foster environmental programmes.
Under this credit line, one of the first projects being considered by Vneshtorgbank is to grant a loan to the Leningrad Regional Administration for water facilities development and modernisation programme in several regional towns such as Gatchina, Kirovsk, Pikaliovo, Tikhvino. Total project cost is ? 5 million.
Nordic Investment Bank was established in 1976 as a result of multilateral agreement entered into between Nordic countries and it is designed to support development and investment. Governments of Denmark, Finland, Iceland, Norway, and Sweden own the 100% stake.