On 16 June 2016, the first day of the St. Petersburg International Economic Forum, VTB Group and Rostec State Corporation signed a RUB 100bln factoring agreement to finance Rostec’s energy saving and efficiency programmes.
The agreement was signed by President and Chairman of VTB Bank Management Board Andrey Kostin, CEO of VTB Factoring Anton Musatov, and Sergei Chemezov, CEO of Rostec Corporation.
Under the agreement, Rostec’s programme to improve energy efficiency within the group will be funded with long-term factoring financing as well as other instruments aimed at improving business efficiency. The long-term financing will be provided for up to 7 years.
“Today, Rostec and VTB Group are at the forefront of a new era in the history of Russian factoring,” President and Chairman of VTB Bank Management Board Andrey Kostin said. “We help companies to introduce energy-efficient upgrades without upfront investment, while they make factoring payments from their savings on fuel and energy resources. Russia is in dire need of modernisation and technological overhaul. We see a huge new market here, and we are happy to have found a respected partner in Rostec Corporation.”“Rostec manufactures a wide range of energy-efficient equipment and is developing a network of “smart cities” which includes various technological features,” CEO Sergei Chemezov said during the signing ceremony. “At the same time, the corporation includes more than 700 companies that need to improve their operational efficiency and optimise costs by reducing fuel and energy spending. VTB’s factoring financing of our energy saving and efficiency programmes is an example of how innovative financial solutions can benefit our business.”
Established in 2007, Rostec State Corporation promotes the development, production and export of high-tech industrial products for civil and military purposes. It is composed of 663 companies, currently structured as nine holding companies in the defence industry and six in civilian industries, as well as 32 companies under management. Rostec’s portfolio includes internationally known brands such as AvtoVAZ, Kamaz, Russian Helicopters, VSMPO-AVISMA, and Others. Rostec companies are located in 60 regions of the Russian Federation and supply products to over 70 countries. Rostec’s revenues amounted to RUB 964.5bln in 2014.