On 30 November 2006 VTB and the Ministry of Agriculture of Russia signed a Cooperation Agreement to jointly implement the "Agroindustrial Complex Development" national priority project.
The Agreement was signed by Aleksey Gordeev, Minister of Agriculture and Andrey Kostin, Chairman and CEO of VTB.
The agreement is aimed at developing cooperation within the national priority project implementation in such spheres as financing the construction and upgrading livestock complexes, lending to purchase breeding stock, machinery and equipment for cattle-breeding, participation in financing the developing projects and programmes of industrial and social infrastructure of agroindustrial complex.
Under the Agreement, VTB will advance the national priority project in the regions of the Russian Federation using the VTB Group branch network. VTB participation together with other banks in forming the system of home finance and land mortgage lending in agricultural regions of Russia will become an important line of cooperation in future. It is also planned to offer settlement and cash servicing to organizations related to the national priority project implementation through the Bank's regional network.
"Today, the VTB Group share in agriculture lending market is about 10 %. By 2010, the volume of lending to Agroindustrial Complex is expected to increase 2-2.5 times and enlarge the VTB Group share in the lending market to 20-25%. Total volume of the VTB Group investments under the "Agroindustrial Complex Development" national project will exceed RUR 50 billion by 2010". - said Andrey Kostin, Chairman and CEO of VTB at the signing ceremony.
"The Agreement signed is a further step in the Bank policy to implement the national priority projects set by the Russian Government, added Andrey Kostin, - In August 2006, VTB and the Russian Ministry of Regional Development signed a Cooperation agreement in the "Affordable and comfortable housing to Russian citizens" national priority project. Such agreements are sure to be a firm basis for effective use of the VTB Group significant financial resources for successful national projects implementation".
It should be mentioned, that in VTB a comprehensive evaluation of specific projects in Agroindustrial Complex Development within the implementation of the Agreement with the Ministry of Agriculture of Russia will be made by VTB Committee on national priority projects headed by Konstantin Kozhevnikov, Senior Vice President and Member of the Board.