Vladimir Putin's opening remarks:

Good evening, colleagues.

We have an extended and informative agenda today. We are to approve Vnesheconombank's annual report for 2010 and discuss a number of major projects that are partly financed by the bank.

It should be noted that Vnesheconombank shifted its priorities last year. As the overall economic situation stabilised and post-crisis growth began, it started to pay greater attention to long-term goals rather than emergency support measures for specific sectors and enterprises. First and foremost, I have in mind projects for modernisation and re-equipment and, naturally, for promoting small and medium-sized businesses.

Last year, the total amount of funds allocated by Vnesheconombank for engineering and infrastructure projects as well as for development projects grew by almost a quarter and totalled 350 billion roubles. These projects included the construction of the Boguchany HPP and the Novy Urengoi SDPP, the new passenger terminal in Vladivostok International Airport, the construction of the Kirill Lavrov and Mikhail Ulyanov ice-class tankers, and a number of other projects.

The portfolio of loans aimed at supporting the export of domestic hi-tech products reached 60 billion roubles. VEB reserved up to 250 billion roubles for mortgage development, including refinancing housing loans. VEB's participation in these programmes is expected to promote a further reduction of mortgage rates and the general development of mortgage lending in the country.

As of January 1, 2011, VEB allocated about 50 billion roubles through subsidiary structures for the promotion of small and medium-sized businesses, which I have already mentioned. I would like to ask you to continue to pay greater attention to these issues. Let me remind you that by 2015, we are to increase the financial support of small and medium-sized businesses to 250 billion roubles.

In general, I would like to thank VEB's team for their active work over the previous year. I believe that the bank has achieved quite satisfactory results and confirmed its position as Russia's key development institute. By the end of 2010, its net profit totalled 28 billion roubles.

Let me say a few words on our immediate objectives.

Vnesheconombank has participated in various regional activities, and it is necessary to augment these efforts in the regions. In November 2010, VEB established the Corporation for the Development of the North Caucasus in order to finance projects in the North Caucasus. The corporation has already been selecting potential facilities and programmes for financing.

Today, we are to approve the decision to open a line of credit for the construction of the first stage of the Arkhyz Health Resort in Karachayevo-Circassia. The project entails the construction of a world-class tourist cluster with modern infrastructure that can host up to 25,000 guests at one time. We plan to form a total of six recreational economic centres in the North Caucasus and in the south of Russia. Almost 60 billion roubles for their construction will be received in allocations from the federal budget. These facilities are in Karachayevo-Circassia, the Krasnodar Territory, and the Republics of Adygea, Kabardino-Balkaria, North Ossetia-Alania, and Dagestan. I would like to note that despite considerable expenditures on the Sochi Olympics, we should not neglect other regions, including the alpine tourist clusters in the south of Russia. These projects require good money, and I believe that this will give an economic boost to the region, create new jobs, and promote fiscal self-sufficiency.

Certainly, these are complicated projects. We will have to address a number of problems in the course of the work. However, we are sure that these initiatives will be quite effective and will create new jobs as well as improve the socio-economic standing of the region. Incidentally, our foreign partners are paying more and more attention to such projects. Did you know that a joint Russian-French project for the development of the North Caucasian tourist cluster is currently underway?

Today, we are also deciding upon the establishment of the Fund for the Development of the Far Eastern Federal District and the Baikal Territory. As we have agreed, it will be a Vnesheconombank subsidiary headquartered in Khabarovsk. I would like to stress that the fund should generate investment projects as well as informational and promotional support for the Far Eastern territories as a promising platform for Russian and foreign investments. This means that the fund should be the region's full-fledged development institution.

I expect the VEB's prestige to attract large Russian and foreign banks and investment companies. Until 2015, no less than 70 billion roubles will be allocated for the fund's projects; the first 5 billion roubles can be allocated in the current year.

And to conclude: at present, the establishment of the Strategic Initiatives Agency is underway. The projects that were submitted are being discussed by our experts. The positions of the CEO and the directors of its three areas of work will soon be announced. I think that Vnesheconombank should take part in the agency's work and provide abundant support to it, including financially. Certainly, I have in mind only those projects that are acceptable to the bank. The VEB has already decided to grant 100 million roubles to the agency in order to expand its work. Let us think of other support mechanisms for the promotion of those project proposals that are selected.