Deputy President of VTB Bank: ‘In the next two years the oil price will recover’
About how the second largest Bank of the country has managed to attract Rustam Minnikhanov to the conference, and how Kazan bank clients lost money due to the purchase of dollars
At the conference of VTB bank held on 17 March in Kazan Rustam Minnikhanov who was among the key speakers at the meeting presented the Republic's economic potential of the region, and the invited entrepreneurs had the opportunity to discuss the issues of cooperation with the Bank in Tatarstan with the top management of VTB. Meanwhile, the Deputy President and Chairperson of VTB Bank Management Board Mikhail Oseyevsky told Realnoe Vremya about the projects being implemented by the Bank in the framework of public-private partnership, and why the work of the Vnesheconombank should not be shifted on more successful state banks.
With President's participation
The main theme of the conference was the work of VTB Bank with the main sectors of Tatarstan's economy – IT, industry and agriculture. According to Mikhail Oseyevsky, the Bank met regularly with its partners, colleagues and clients in different parts of the country. It allows to exchange views on how to work together better in this difficult time. And the places, like Tatarstan, are especially important for the Bank due to their leadership in economic and social development.
In his turn, Rustam Minnikhanov thanked the leadership of the Bank for the choice of Tatarstan as the place to hold the event. Behind the scenes, the correspondent of Realnoe Vremya has managed to find out that it was quite difficult for VTB to organize the conference with the participation of the head of the Republic – it was allegedly easier to hold it in other regions.
In his opening speech, the President introduced the economic potential of the Republicto the guests of the conference. According to him, Tatarstan is one of the leading industrialized subjects of the country where major investment projects are implemented in the field of oil production, gas chemistry, mechanical engineering and agriculture. He also noted that VTB Bank is a longtime partner of our Republic.
'The Republic clients base in Tatarstan is more than 1 300 corporate clients from all sectors of the economy,' added Rustam Minnikhanov.
'In the next two years the oil price will recover'
The Bank's clients had space for dialogue with representatives of VTB. As Mikhail Oseyevsky reported, mostly businesspersons worried about the opinion of bankers on the macroeconomy and on monetary processes, as well as lending policy.
'We believe that in the next two years the oil price — the key driver affecting all the parameters of our life — will recover. It will lead to the strengthening of the ruble, reduced lending rates, extension of opportunities for investments in fixed capital, extension of opportunities for large companies, for small and medium business,' said Oseyevsky.
The speaker noted that today serious benefits are received by export companies or those companies that are engaged in import substitution, therefore, despite a significant number of issues appeared there is a window of opportunities that business and banks should take advantage of.
Toll bridges across the Kama River and the impossibility to refuse from Vnesheconombank as the development bank
Also, Mikhail Oseyevsky told about the projects being implemented by VTB bank in the framework of the public-private partnership. According to him, usually the work is implemented on objects of transport and engineering infrastructure. All of them are quite costly that require complex funding structure of financing, and most importantly – long-term money.
'The problem of long-term money, probably, is one of the most important. For example, in order to build a toll road, it is necessary to issue the credit for 10-20 years, but such deposits do not exist. Those deposits that VTB Bank brings today — it is a month or two. Therefore, the pension reform (to be exact, retirement money are the most long-term) is the source of infrastructure financing around the world,' commented the chairperson of VTB Bank Management Board.
Despite the existing difficulties, the Bank is currently engaged in the construction of toll roads: for example, the road Moscow — St. Petersburg of the toll bridge to Udmurtia across the Kama River. Oseyevsky noted that a big move forward appears only when the financial system is changed and pension funds become major players.
Also, Oseyevsky who is an active supporter of the development of the country through a large infrastructure financing, answered the question of Realnoe Vremya about whether Vnesheconombank, in connection with certain problems in its functioning, should abandon the model of Bank development in order to shift its work to the state banks with more successful experience.
'I can say that, undoubtedly, state development institutions exist in all countries, and I have not heard from anyone yet of the idea to abandon such tool – it is absolutely necessary. No doubt there will be some changes in the management system. I can say that we, as a commercial Bank, interact with the Vnesheconombank. We have a number of joint projects, therefore the mechanisms of interaction between development institutions and the banking system exist objectively, and whether there will be some changes – let's wait for the decision of the government,' said Oseyevsky.
A buffet dinner for 'friends' and the dollars purchase at 2 millions
The last event for the most part was closed to the press. The most interesting part, to be exact, the discussion on partnership with Tatarstan, was held behind closed doors. And after a half and hour of waiting of brief discussions with the chairperson of the Management Board of VTB Bank all the media had to leave: a lush buffet dinner exclusively for 'friends' started.
The correspondent of Realnoe Vremya managed to 'snatch' a part of the fun conversation of the guests at the banquet. A young mother was discussing with her friend her purchase at 2 million rubles. The woman was very upset that almost immediately after the purchase the rate has declined sharply. Her companion was sincerely sorry about the incident and quietly comforted her friend with the fact that 'the dollar will certainly grow'.
