Phl infra projects in Russia to get $1-B funding

MANILA, Philippines -  VTB Bank, one of the leading universal banks in Russia and majority owned by its government, has committed to pour in $1 billion to finance key infrastructure and other projects of Philippine companies to be developed in Russia and in former Soviet Republics.

The bank signed the memorandum of understanding (MOU) with the Philippines-Russia Business Council (PRBC), which is chaired by businessman Roberto de Venecia, one of the many deals bagged by the Philippine business delegation during a visit to the Eurasian country last week.

PRBC is among the business organizations that joined the delegation of some 200 Filipino businessmen to Russia that accompanied President Duterte’s official visit to Moscow.

The MOU is intended to establish a co-investment program, with a commitment of $1 billion wherein the two institutions would focus on investment opportunities in Russia and the Philippines.

“The deal with VTB Bank is one of the biggest accomplishments the council achieved from the visit,” De Venecia told The STAR over the weekend.

De Venecia signed the MOU on behalf of the business council while Riccardo Orcel, VTB’s deputy group CEO and deputy chairman of the management board signed for the bank.

According to the terms of the MOU, VTB will provide PRBC with a range of products and services to support PRBC-linked companies’ and their projects in Russia.

The projects will cover infrastructure, strategic ports development, commercial trade contracts, sales and service contracts, supply contract for gas, forest products, animal products, agriculture-related contracts, and other viable business arrangements.

VTB Bank is ?a global provider of financial services, comprised of over 20 credit institutions and financial companies operating across all key areas of the financial markets.

The bank’s global network is unique to the Russian banking industry as it enables the group to facilitate international partnerships and promote Russian companies aiming to engage with global markets.

It operates a large international network across CIS countries; Armenia, Ukraine, Belarus, Kazakhstan and Azerbaijan.

The majority shareholder of the VTB Bank is the Russian government though its Ministry of Finance.

De Venecia said PRBC’s agreement with VTB Bank is in response to the direction of President Duterte to improve? bilateral and trade relations with the Russian Federation.

“The PRBC considers it as a pressing need to advance our almost dormant relations with the Russian Federation,” De Venecia said.

He said that to create windows of opportunity for the Philippines, there is an eminent need to improve bilateral, diplomatic, trade, and tourism relations with the Russian Federation.

The ?Philippines stands to benefit from the initiative to encourage the participation of the business sector through the participation of the enlarged business delegation coordinated by the Department of Trade and Industry (DTI), he said.

PRBC is a business-related organization affiliated with the Philippine Chamber of Commerce and Industry (PCCI), with focus on developing direct bilateral business cooperation between the Philippines and appropriate business counterparts within the Russian Federation.