Czech Export Bank Will Provide Finance for Modernization of Urals Enterprises

07.04.2009 — News

THE SVERDLOVSK OBLAST.

The Sverdlovsk Oblast Government will sign a cooperation agreement with the Czech Export Bank. The agreement was reached on 7 April 2009 during the meeting of Eduard Rossel, the Governor of the Oblast and Martin Říman, the Minister of Industry and Trade of the Czech Republic.

The Sverdlovsk Oblast Government will determine the list of enterprises in need of production modernisation and then the credit limit will be determined, Mr. Rossel told RusBusinessNews. One of the conditions for granting the loans is the use of Czech equipment. Its share in the modernization process is to be at least 50%. The scheme has been tested on the OAO NPK Uralvagonzavod (Nizhniy Tagil) that received 1 billion Euro worth of investments from the Czech Republic.

Martin Říman pointed out that the financial crisis slowed down the implementation of investment projects, indeed, but that there are examples of successful development nevertheless. On 6 April, the OAO Magnitogorsk Metallurgic Combine and the Czech Export Bank signed a contract for the supply and assembly of metallurgical equipment from the Czech Republic worth 155.5 million US dollars.

According to Eduard Rossel, the Sverdlovsk Oblast is still interesting to foreign investors even in the time of crisis. Until 14 April 2009 the agreement with the China Development Bank will be finalised; this has a goal of attracting 1 billion Euro. He pointed out that 13.5 billion US dollars worth of foreign money was invested into the economy of the region in 2008. It is planned that by 2020 the figure will reach 25 billion dollars.