Moscow gets into Europe’s top 5 most attractive cities for investors

The Russian capital has climbed above Helsinki, Warsaw, Berlin and Stockholm to rank fifth among Europe’s most attractive cities for foreign investment.
The 2018/2019 ranking was compiled by Foreign Direct Investment Intelligence (a division of the Financial Times). It assessed 301 European cities and 150 regions.

London has maintained its leading position in the rating, but experts said that could soon change because of Brexit. Dublin has taken second place, and was followed by Paris, Amsterdam and Munich. The top 10 business-friendly cities also included Frankfurt, Zurich, Cambridge and Helsinki.

“Russia’s capital has improved its performance in the prestigious rating of attractive cities for investment in Europe. This year Moscow is among top five most interesting cities of the continent for making investments, and it has taken the first spot in the rating of Eastern European cities,” said the head of Moscow’s Department for Economic Policy and Development Vladimir Yefimov.

He explained that the Russian capital had attracted foreign investors due to benefits and preferences it provides. “Moscow has successfully joined the list of Europe’s leading megacities in terms of simplicity and convenience for doing business as a result of its comprehensive program on investment support.”

The city annually attracts around 50 percent of all foreign investment coming to Russia, the official said. Among the Eastern European cities, Moscow ranked first as the most attractive for doing business. It was followed by Warsaw and Bucharest.

The Financial Times’ service publishes the ranking of the ‘European Cities and Regions of the Future’ twice a year. It examines five main areas – economic potential, world of work, expenses of doing business, infrastructure, and environment for doing business. Every category is scored between 0 and 10 points. The total score determines a city’s final place in the ranking.

Moscow was seventh and 10th in the 2016/2017 and 2014/2015 ratings, respectively.


Krasnoyarsk Economic Forum, 12-14 April 2018, Krasnoyarsk

Krasnoyarsk Economic Forum (12-14 April 2018, Krasnoyarsk) is one of the most significant and anticipated economic events of the year not only in the Krasnoyarsk region, but also in Russia. The uniqueness of the Forum is in the creation of platform for discussion and constructive dialogue between business, government and society. The Forum is famous for the intensity of occurring discussions. It is here, where the bank of anti-crisis ideas was created during the financial crisis.
To see business programme press here.
To register press here.

Welcome words of Acting Governor of Krasnoyarsk Krai Mr. A.V.Uss:

“Krasnoyarsk Economic Forum has always been a place for substantive, in-depth discussions on Russia’s economic development strategies. The Forum has been successfully introducing new ideas on how to boost electric power industry, metallurgical industry, oil production and wood processing along with space industry, scientific research and technology. The Forum has made a valuable contribution to creating and maintaining public private partnership, discussing the region’s development trends and moving forward new concepts of Russia’s economy growth.

A number of landmark decisions on launching large scale investment projects have been made at the venues of the Forum. Now we are witnessing the results such as Lower Angara project execution, oil and gas fields development in the northern territories, renovation of city infrastructure in the capital of Winter Universiade-2019 and construction of the largest Siberian airport.

The 15th Krasnoyarsk Economic Forum “Russia 2018-2024: Implementing the Potential” will again address federal agenda issues. The 2018 is the year of upcoming presidential election, the year when the country’s development priorities must be defined. National prosperity can only be reached by boosting investment projects as well as making efficient use of human, scientific and economic resources of Russia. Thus, we can shape a future worth living for us and our descendants.

Siberia and Krasnoyarsk Krai in particular are notable for their unique competitive strengths that have already helped to put into practice lots of strategically significant concepts of the country’s development framework. Today, Krasnoyarsk Economic Forum is expected to come up with new breakthrough initiatives that will determine future development of the region on the federal scale. Being a moving force of the Yenisei Economic Zone it is able to become the core of the Eastern vector of Russia.

Economic issues relevant to Siberian macroregion are surely considered to be the matters of particular importance for the whole country. Leading experts, businessmen and government officials will gather to exchange views on such significant projects as the regional scientific and technological roadmap, formation of new economic growth areas in Siberia and sustainable transport systems of the future.

The attendees will also discuss how the government can support business community, how to introduce advanced technologies into metropolitan areas and use the experience of leading manufacturing enterprises in protecting environment.

Great attention is to be focused on economic cooperation with Southeast Asia and Euro-Asian Partnership members.

I wish all the participants and guests of the Forum to obtain great results at the discussion venues. I hope the decisions taken during the talks will pave the way for a breakthrough in the economy of Siberia and the entire country.”

General questions:

Questions related to the business program:

Questions about involvement in the forum:

Questions related to involvement in the exhibition:

Questions about partnering opportunities:

Media, advertising and PR inquiries:

Accommodation and transportation matters:

Participation in the youth program:


The Association of clusters and technology parks with support of the Ministry of Economic Development of the Russian Federation published an English version of its SEZ Business Navigator, which analyses the investment attractiveness of the Russian Special economic zones and ranks them.

According to Elmira Akhmeeva, Deputy Director of the Department for Regional Development of the Ministry, an English version of the Business Navigator lets not only Russian, but also foreign investors choose the most investment attractive areas for business development.

You can download it here
You can also see the SEZ production.

The Yalta International Economic Forum (YIEF), April 19-21, 2018

The Yalta International Economic Forum (YIEF) is an annual business event held in the Crimea (Yalta). Along with the Petersburg International Economic Forum, the Eastern Economic Forum and the Sochi Investment Forum it is one of the four biggest economic forum held in Russia. The forum is sponsored by the Government of the Republic of Crimea and the Yalta International Economic Forum Fund with the support of the Administration of the President of the Russian Federation.
The YIEF has established itself as an effective international venue for discussing socio-economic development issues with a topical agenda that addresses the modern challenges facing the world economy.
Main theme of the forthcoming Yalta International Economic Forum will be “Global Future. Future of Russia”. Meaningful dialogue on global economic affairs, adjusted for modern geopolitical, social and cultural environment provides the Forum to be inclusively diversified and comprehensible, transforming the collective intelligence into dynamic, contextualized knowledge. As foreign honour guests of the event will be invited representatives of Austria and Germany. Forum’s debates will focus on such issues as mastering tools of digital economy, international cooperation for territorial development, investments in high-tech industries, future power economy, preservation of cultural heritage, human well-being, ecology and many others.
Each year the Forum is attended by high-level Russian government officials, international experts, influential international and Russian businesspeople and economists, representatives of major business organisations and other opinion leaders. An important YIEF focus is the search for ground-breaking approaches and instruments to solve the tasks of social and economic development and discussion of the best world business practices. The discussions are built around the search for answers to modern challenges spanning a wide range of topics: the creation of a competitive, diversified modern market economy that does not depend on the export of natural resources, effective interaction between business and government, the development of competitive innovative production and modern technologies, tapping the human potential, and support of small and medium-sized businesses. International and inter-regional cooperation also looms large on the agenda.
The YIEF is the main showcase of investment opportunities and the investment potential of the Crimea. An important feature of the region is that it is the only Free Economic Zone on the territory of the Crimean Federal District. An exhibition of the CFD investment projects is a permanent feature of the YIEF. Would-be investors have a chance to talk with officials, including the head of the Republic of Crimea, Sergei Aksyonov, who chairs the YIEF Organising Committee. By tradition, the third day of the Forum is devoted to meetings between the regional government representatives and the business community.

Apply for participation

History Facts

More than 2200 people took part in the YIEF-2017, including 200 foreign participants from 46 countries. The biggest delegation of the Forum was from Italy – more than 50 people represented it.
The Programme of the YIEF-2017 featured 35 business events: 25 topical discussions, grand session on construction development and key event of the Forum – the Plenary Session, divided into 3 blocks: “World”, “Country” and “Human”. The part “World” was devoted to analyzing economic environment in Russia through the eyes of international businesspersons. Participants of the Plenary session considered the place of Russia in the world economy, collaboration experience with the RF as business partners and discussed opportunities for foreign investors in Russia.
Block “Country” featured outlook of an innovative economy formation in Russia, complying with demands of future. “Human” part disclosed social and environmental issues.
Agreement and memorandums on the total sum of 100 billion rubles were concluded within the YIEF-2017.
YIEF-2017, which took place on April 14-16, 2016 was attended by 1100 people: politicians, business community and economic experts. Among them, there were 70 foreign participants from 26 countries.
II YIEF resulted in 12 investment agreements for the total of 70 billion rubles and a new security mechanism for foreign investors, willing to work in Crimea. The biggest investment agreement in the newest history of Crimea was concluded on the sidelines of the Forum – on construction of a new airport terminal building in Simferopol international airport. The sum of investments is about 32 billion rubles.

600 people attended YIEF-2016 from 13 countries of the world. 5 new residents of free trade area of the Republic of Crimea and Sevastopol were declared within the Forum. The participants of the Forum also reached the agreements on receiving residential status for 33 subjects. The number of a free trade area reached 850.


Head Office in Yalta
Telephone: +7 (365) 423 06 90

Yalta International Economic Forum
Information Centre
+7 (812) 643 07 09 (Saint-Petesburg)

DALAGRO & FOOD PRODUCTS, 15-17 March 2018, Vladivostok

The 19th International Agriculture and Food Industry Expo “Dalagro & Food Products” will take place at Vladivostok on the 15-17 of March 2018. Dalagro and Food Products Expo offer a comprehensive range of food processing and cutting equipments which are manufactured by applying advanced technologies. The exhibitors find this exhibition to be the perfect business meeting place where the exhibiting companies get an opportunity to establish themselves and create their own brand name. Dalagro and Food Products Expo aims to benefit the mentioned sector by providing the branded range of products which are easy to handle and effortless to install. The attendees will get to see a wide range of economic products which are designed to provide complete satisfaction to the buyers. The event aims to bring the food processing, refining, packaging, storing and exporting sectors to achieve great success. The exhibitors get an opportunity to widen their marketing networks and increase their surplus levels.

Exhibitor Profile

Dalagro and Food Products Expo will exhibit Fruits, vegetables and other agricultural products, Meat and sausage products, Dairy and fat oil products, Fish and seafood, Seaweed products, Cereal products, flour, rice, Premium pastas and whole grain noodles, Sweets, bakery and confectionery, Pickled vegetables and mushrooms, Traditional foods, Natural spices and ingredients, Sauces, spices, and pastes and Soybean products. The purchasers will get to exhibit Convenience foods, Soups and broths, Alcoholic liquors, Mineral and medicinal waters, Beverages like juices, tea and coffee, Diet foods, Water cleaning solutions, Cooking equipment and technologies, Catering and cooking equipment, Agricultural technologies and chemical products, Labor protection and uniform, Training and education, Insurance, credits and leasing and lot more.

To attend press here

Contact details:

Management Team
Ms. Polina ABRITANOVA, Project Director
tel.: +7 423 2451-502, +7 423 2300-418,,
skype: press-dalexpo

International Team
Ms. Lydia LABYUK, International Projects Officer (Chinese available)
tel./fax: +7 423 2451-502

Technical Team
Mr. Sergey PRYANIK, Head of Technical Services
tel./fax: +7 423 2450-347


Russia’s real estate sector is starting to recover

Russia real estate sector is starting to recover after years in the doldrums, with the investment volume up 9% in 2017 to $4.6bn, reports JLL.

Russia’s real estate investments reached $1.9bn in the last quarter of 2017, up 88% y/y versus $1bn in last quarter of 2016, according to JLL calculations. This brought the full year volume to $4.6bn, up 9% from $4.3bn in 2016.

“In 2017, the market underwent both positive and negative changes. The Russian economy has been recovering,” Olesya Dzuba, Head of Research, JLL, Russia & CIS, said in a report. “The ruble traded within a narrow range. Inflation declined below the Central Bank target. Despite the raising concerns about the banking sector stability, a number of large deals closed at the year-end. These included the sale of Immofinanz shopping centre portfolio and the part of Sever-2 warehouse complex. We expect the investment volume to climb to $5bn in 2018, up 9% y/y.”

In 2017, the retail sector accounted for 40% of the total volume. Offices followed, with 34% of all deals. The retail sector dominated over the whole year, with the sale of the Immofinanz shopping centre portfolio to Fort Group supporting this in the fourth quarter.

“Moscow remains the main investment destination in Russia. In 2017, its share was close to the level in the previous year, at 79%,” JLL said in its report.

But higher investment activity was recorded in St. Petersburg, whose share had increased from 9% in 2016 to 16% in 2017. In absolute terms, the St Petersburg investment volume grew by 96% y/y, from $380m to $744m. Investors considered St Petersburg assets as an alternative to those in Moscow, increasing their activity in the Northern capital.

And foreigners are getting back into the market. The share of foreign investments increased from 6% in 2016 to 17% in 2017.

“In 2017, new foreign investors entered the market. At the same time, those who have already been present there became more active. The newcomers included the Chinese company Fosun Group, which purchased the Vozdvizhenka Centre office building in Moscow. Raven Russia, the British investment fund, which acquired assets both in Moscow and in St Petersburg, led the ‘old timer’ list,” Evgeniy Semenov, Regional Director, Head of Capital Markets, JLL, Russia & CIS, notes. “The investment market recovers gradually, with the share of restructuring deals dropping from 48% to 2% in 2017.”

Prime yields remained flat last year. As benchmarks for the market players, JLL analysts consider Moscow prime yields between 9.0-10.5% for offices and shopping centres and 11.0-12.5% for warehouses; St Petersburg prime yields were at 9.5-11.5% for offices and shopping centres and 11.5-13.5% for warehouses. Following key rate cuts by the Central Bank, the cost of bank financing will continue declining and will likely lead to yield compression this year.


AutoInvest® Conference, 28 February — 02 March 2018, Saint Petersburg

Annual International Conference on Investment Attraction to Automotive Component Industry AutoInvest®2018 is the first event of the year in the Russian automotive industry.

The business agenda of the 12th Annual International Conference AutoInvest®2018 is dedicated to prospects of automotive products export development, use of alternative fuels and innovative solutions for economic and ecologic efficiency of the Russian automotive industry as well as to cluster development of the automotive sector, sales strategies and automobiles service technologies.

The AutoInvest® conference has gathered more than 2500 automotive industry experts and professionals for the previous years. Top managers of leading OEMs and automotive components manufacturers, bodies of the public authority, representatives of scientific research institutes, automotive sector specific unions and associations. Representatives of business of Russia and foreign countries, bodies of the public authority, financial organizations from 15 Russia’s regions and 20 foreign countries.

The aim of the Conference is to establish a constructive dialogue between automotive components manufacturers, OEMs and authority in the areas of consolidating efforts to develop the automotive industry of Russia.

Saint Petersburg as a centre of automobile cluster of the North-West Russia is not accidentally chosen as a meeting place for key players in the automotive industry. Manufacture of leading world automobile concerns such as Ford, Hyundai, MAN, Nissan, Scania, Toyota is located in Saint Petersburg.

The International Conference AutoInvest® is an effective site to work out practical decisions on topical directions of the automotive industry development and enlargement of business cooperation in the automotive sector.

Taking into account the strategic importance of the automotive industry development the AutoInvest® Conference is supported by the Presidential Plenipotentiary Envoy to the Northwestern Federal District, the Ministry of Industry and Trade of the Russian Federation, Government of Saint Petersburg and the Leningrad region.

Paying special attention to the format of the event as the Russia’s largest business site for practical decisions in the area of the automotive business, organizers hold discussions of the topical issues of the industry development and specialized events. Among such events are the Suppliers Development School is a complex of specialized training seminars and consultations in the sphere of business development, exchange of experience and expansion of cooperation in the field of automotive components manufacturing for employees – Conference delegates, and B2B Meetings are direct negotiations with potential partners, in which heads and representatives of OEM’s purchasing departments, local suppliers of automotive components, materials and services participate .

To fully present a potential of the Russian automotive industry and opportunities for business cooperation the AutoInvest® Conference is accompanied by the specialized exhibition for professionals of the automotive industry.

Advantages of participation in AutoInvest®:

  • Government, automotive components manufacturers and OEMs are gathered in one place
  • Practical results for each participant
  • Topical agenda and a wide range of discussed issues
  • Highly competent speakers

Organizers of the Conference are North-West development and Investment Promotion Agency and National Association of Automotive Components Manufacturers.

The Conference is traditionally held under support of the industrial unions and associations such as NAMI, Association of Russian Automakers (OAR) and also the largest automobile companies such as MAN Truck & Bus Production RUS, Nissan Manufacturing RUS, Scania-Peter and others.

Conference Agenda is available here.


Project Coordinator

Ekaterina Orlova

tel.: +7 967 513 79 95


Speaker Manager

Artemiy Nikolaev

tel.: + 7 964 390 33 48


Delegate Manager

Marina Maslova

tel.: +7 960 240 02 50


PR Manager

Natalya Cherezova

tel.: +7 960 240 00 38


About Smolensk Region

Smolensk region is situated in the center of East European plain, on the western border of the Russian Federation. The region is a part of the Central federal okrug of the Russian Federation and according to the economic zones grid belongs to the Central economic area.

(Investment portal of the Smolensk Region.)

The area of Smolensk region in modern borders is 49.8 thousands square km, which is about 0.3% of the total area of Russia. The length of the territory from west to east is 280 km, from north to south it is 250 km. The administrative-territorial entities include 25 administrative districts and 2 cities of regional control: center of the region – Smolensk (318.0 thousands people) and Desnogorsk (31.9 thousands people). The largest cities of Smolensk region are: Vyazma (55.95 thousands people), Gagarin (27.7 thousands people), Roslavl (54.3 thousands people), Safonovo (45.3 thousands people), Yartsevo (50.9 housands people), Dorogobuzh (11.7 thousands people). The urban settlements include 15 industrial communities. The largest of them are Verkhnedneprovsky and Ozerny.

Smolensk region borders five regions of Russia: to the north – Pskov region and Tver region, to the east and south-east – Moscow and Kaluga regions, to the south – Bryansk region, and two regions of Republic of Belarus – Vitebsk region to the north-west and Mogilev region to the south-west. The length of the state border is about 1/3 of the entire perimeter, crossed by more than a hundred and a half of different types of roads. Smolensk region is a very important transportation and communication center. The following routes go through it:

– the shortest automobile roads and railways linking Western Europe with Central Russia (including the Moscow-Minsk highway);

– a lateral motor transport corridor “St. Petersburg – South of Russia”, essential for the country;

– one of the largest gas pipelines “Yamal – Europe”;

– high voltage power line “Russia – Belarus – Western Europe”;

– world fiber-optic telecommunication mains.

Being an area of exclusive geographic and political location and having the necessary territorial and material resources, as well as considerable technical and intellectual potential and a developed transportation and communication system, Smolensk region is one of the most favorable regions for developing logistic and terminal complexes.

The amount of foreign freight traffic going through the region is almost 2/3 of the entire Russian foreign freight turnover. The largest transportation junctions – Smolensk, Vyazma, Roslavl – have mighty warehouses with access ways and sorting stations. Beside the two country’s capitals, Moscow and St. Petersburg, Smolensk region is the only region where transportation and communication services can be provided in a complex on such level.

Administration considers the geographic location of the region and the forming infrastructure as one of the most important independent resources of the region’s development.

Lying in middle latitudes, in an area noticeably affected by Atlantic air masses, its territory is a water-parting of three large river systems of the European area of the country – Volga, Dnieper and West Dvina systems. These characteristics of the physical and geographic location determine the main features of the region’s nature: moderate continental climate, prevailing hills and minor rivers, wide-spread forests and sod-podzolic soils.

The climate is moderate continental. Summer is warm (average July temperature is 17-18 degrees Centigrade), winter is moderate cold (average January temperature is minus 8.5). Annual precipitation varies from 530 to 650 mm.

Mineral and raw material resources

Mineral resources play a significant role in the region’s economy, being the raw material base for the production of construction materials and road making. The leading position among the mineral resources belongs to brown coal, sand and gravel material, peat, fire clay, building stones, cement materials, bottom ooze, etc.

Structure of mineral and raw material resources of Smolensk region

building stones – 8,7%

carbonates – 3,5%

peat – 22,6%

ceramic raw materials – 3,8%

expanded clay raw materials – 0,7%

sand and gravel material – 25,6%

sand – 3,3%

tufaceous limestone – 0,4%

phosphorites – 0,6%

cement raw materials – 2,8%

brown coal – 26,7%

fire clays – 1,3%

The region’s mineral and raw material resources are also represented by fresh drinking and mineral underground water (52 fields) used for utility and drinking water supply.

To download presentation about  INVESTMENT opportunities.
Investment portal of the Smolensk Region.

Contact information:

Alexey Ostrovskiy Governor of Smolensk region
Address: 214008, Smolensk, Lenin square, 1
Phone: +7 (4812) 38-66-11
Fax: +7 (4812) 38-68-51

Department of Investment Development of Smolensk Region
Rostislav Rovbel Deputy Governor, Director of the Department
Address: 214025, Smolensk, Poltavskaya str., 8A
Phone: +7 (4812) 29-23-32
Fax: +7 (4812) 20-55-39

The first deputy head of Department Anton Afonochev
Phone: +7 (4812) 29-55-33

Deputy head of Department Sergey Kotelnikov (investment development)
Phone: +7 (4812) 20-55-19

Deputy head of Department Alexey Streltsov (development of industry)
Phone: +7 (4812) 29-51-15

Deputy head of Department Stanislav Kulazhnikov (strategic projects)
Phone: +7 (4812) 29-24-06

Division for state support of investment activities
Head of Division for state support of investment activities
Nadezhda Volkova
Phone: +7 (4812) 29-55-41

Division for investment projects support
Head of Division Yulia Nikiforova
Phone: +7 (4812) 29-55-25

Division for Development of Small and Medium Enterprises
Head of Division Ekaterina Syrchenkova
Phone: +7 (4812) 29 -55-11

Division for development of industrial parks
Head of Division Natalia Hromova
Phone: +7 (4812) 20-58-03

Division for strategic projects
Head of Division Demin Alexander
Phone: +7 (4812) 29-13-95

Division for development of industrial parks
Head of Division Natalia Hromova
Phone: +7 (4812) 20-58-03

About Vladivostok: DALEXPOCENTER CO., LTD

DALEXPOCENTER is an exhibition, convention, and trade mission company based in Vladivostok, Russia. A prominent player at Russia’s Far East tradeshow market since 1994, the company has produced over 160 tradeshows and over 150 meetings and conventions.
DALEXPOCENTER is a member of the Russian Union of Exhibitions and Fairs, Primorsky Chamber of Commerce and Industry, and Public Council of Primorsky Territory Businessmen.

Ms. Vera ERMILOVA, Director General is a Member of the Board at the Russian Union of Exhibitions and Fairs (RUEF) and a member of the Committee for Support of Manufacturers and Exporters at the Russian Chamber of Commerce and Industry.

DALEXPOCENTER‘s projects are supported by the Russian federal ministries, Primorsky Territory Government, City of Vladivostok, major professional associations of Russia, and the Russian Chamber of Commerce and Industry.

DALEXPOCENTER‘s project portfolio focuses on key sectors of the regional economy, such as
• construction,
• agriculture,
• food products,
• health and wellness,
• sports and leisure,
• electrical and power engineering,
• transport,
• security.

DALEXPOCENTER is creating opportunities for companies to develop new business and meet trade partners in Primorsky Territory, one of Russia’s most thriving and dynamic regions.

DALEXPOCENTER contributed to organizing large-scale international events in Vladivostok and abroad, including 2012 APEC Summit in Vladivostok, Eastern Economic Forum, 18th Local Governments Summit in Northeast Asia, Asian Congress of Event and MICE Industry, and Russia-China EXPO (Harbin International Trade Fair).

DALEXPOCENTER offers a full range of services for organizing tradeshows, conventions, advertising, and promotions, including
-booth construction & design,
-presentations & matchmaking,
-display and conference equipment,
-exhibition personnel,
-printing & publishing,
-hotel reservation,
-visa support,
-railway and airline ticket reservation,
-transportation services,
-translation & interpreting,
-customs and freight forwarding,
-sightseeing programs.

DALEXPOCENTER has great experience in executing and hosting business missions and b2b meetings to facilitate networking opportunities for Russian and international companies and to strengthen international trade cooperation in Pacific Asia.

DALEXPOCENTER has established strong partnership relations with international governmental agencies, professional associations, and trade fair organizers and is opened to any kind of cooperation.

Don’t miss tremendous business opportunities to access the fast-growing market of the Russian Far East through Dalexpocenter’s tradeshows!

Full 2018 event Calendar is available here

To contact: Dalexpocenter Co., Ltd

Ms. Lydia LABYUK, International Projects Officer (Chinese available)
tel./fax: +7 423 2451-502
Mailing address: PO Box 255, Vladivostok 690090 Russia
Tel./fax: +7 (423) 230-05-18, 230-04-18, 245-15-02
Oficial website:

Moody’s publishes a positive credit opinion on Russia’s International Investment Bank

Moody’s published a positive credit opinion on International Investment Bank (IIB) with the bank – formerly billed as the Soviet era’s answer to Europe’s EBRD – continuing to reinvent itself.
The international rating agency Moody’s Investors Services improved its credit opinion of IIB after meetings with the bank’s management in October.
Set up in Soviet times to foster cooperation and trans-border investment amongst the Comecon countries, the bank has been remaking itself over the last three years as a modern International Financial Institution (IFI) and the transition program officially came to an end at the close of 2015.
Moody’s noted a number of positive developments in its credit opinion that have had a positive impact on the institutional development and the operational activities of the IIB this year.
In May, 2017, Moody’s upgraded IIB’s rating outlook to positive from stable and affirmed IIB’s Baa1 issuer and debt ratings. In addition to the Moody’s Baa1 rating (outlook “positive”), IIB has been assigned ratings of BBB with a stable outlook from S&P and Fitch, as well as an A rating from the Chinese rating agency Dagong (outlook stable).
“The Moody’s opinion confirms the financial stability and the operational efficiency of the Bank. I would like to express my gratitude to the Agency for its positive evaluation of our efforts aimed at enhancing the role of the IIB as an effective multilateral financial institution, which operates in the interests of sustainable development of the economies of its shareholders,”, chairman of the IIB board Kosov said in a statement.
And the agency was pleasantly surprised by the “policy continuity” in the unanimous approval by the member states of the new development strategy that will start next year and run until 2022 as well as the board’s decision to re-elect the IIB’s chairman Nikolay Kosov for another five-year term.
The bank has been active in the last few years investing in the development of the economies of its member states and active development of local capital markets, including the issue of some pioneering local-currency bonds on local exchanges, its bank lending support programme with local partners and more recently its trade financing programme.
In the next strategic cycle IIB expects to deliver a two-fold asset growth and loan portfolio over five years, as well as delivering on more qualitative customer relations improvements, development of flexible products and service offerings in each of its member states.
The bank has also made progress in its risk management and liquidity management framework, according to Moody’s. This year IIB created an “Early Warning Mechanism” and extended the period for its liquidity buffer to 12 months from six months, which is intended to strengthen its stability during the stress tests.
But the proof of the pudding was the consistent assets growth, quality of the treasury portfolio, and funding diversification. IIB’s development assets, mostly loans, increased by around 38% y/y to circa €501mn in the first half of this year from €363mn in the same period a year earlier. The bank has also increased the Aaa-to-A3-rated assets in its portfolio – about 41% of the total volume as of June 30. At the same time, the IIB has expanded its funding to 11 countries as of the first half of 2017.