Meeting with Gazprombank Management Board Chairman Andrei Akimov

Meeting with Gazprombank Management Board Chairman Andrei Akimov

Vladimir Putin met with Chairman of the Management Board of Gazprombank Andrei Akimov in the Kremlin. The discussion focused on the bank’s current operations, the development of infrastructure projects and R&D financing. * * * President of Russia Vladimir Putin: Mr Akimov, Gazprombank is one of the country’s largest banks, one of its leading financial institutions, ranking among the top three. Chairman of the Management Board of Gazprombank Andrei Akimov: That is correct. Vladimir Putin: In terms of assets and lending volumes. Andrei Akimov: And capital. Vladimir Putin: And capital. Your assets total 17.6 trillion rubles, correct? Andrei Akimov: Yes. Our capital amounts to 1.8 trillion rubles. Vladimir Putin: How would you assess the bank’s current position? Andrei Akimov: With your permission, I will give you a brief overview of the bank’s operations. First, however, I would like to make one important point. As someone working in the banking sector, I can see that Russia’s banking system is in a very stable and resilient position. This is the result of the efforts of the Central Bank and the Government and, importantly, your personal attention to economic and financial matters. I say this in all sincerity. Last year, we posted a profit of 130 billion rubles. Our main priorities are maintaining financial stability, supporting economic development with a focus on future trends, and creating new, high-tech, well-paid jobs. Ultimately, all these efforts will contribute to improving the wellbeing of our citizens. A distinctive feature of our loan portfolio is that 95 percent of it consists of loans to major industrial borrowers representing virtually every sector of the national economy. These include mechanical engineering, which has traditionally been one of our key areas of focus, as well as the chemical industry, nuclear engineering, and agriculture. We are one of the largest lenders to the agricultural sector. Another important point is that we maintain a very constructive dialogue with the Central Bank. Together, we are carefully examining and analysing… Vladimir Putin: That is good to hear. Andrei Akimov: We are assessing the financial position of our borrowers, following [the Central Bank’s] recommendations and working together to develop solutions for managing risks, the size of our balance sheet and the creation of reserves where necessary. We attach great importance to the development of infrastructure projects. We have invested well over a trillion rubles and are keen to continue developing this sector, which serves as the economy’s “blood vessel.” This includes bridges, roads and tunnels, including those built for Russian Railways, as well as research and production infrastructure. One example is the construction of a modern campus on Sakhalin, which will accommodate 2,500 students. Accommodation for 1,500 students has already been completed. These are our priorities. It is also worth noting VEB’s involvement in all these projects. The development bank acts as a partner not only to us, but also to… Vladimir Putin: It holds an equity stake, correct? Andrei Akimov: Absolutely correct, Mr President. It is an equity partner. This is a very significant form of participation and partnership. The same applies to other investors and partners: this is the foundation on which these projects are built. As for the Central Bank, we are working to develop new regulatory frameworks and financial instruments to fund scientific research and facilitate its transition to industrial production. This is a complex challenge because the entire process, from initial research to industrial implementation, cannot rely solely on interest-bearing debt financing; it also requires investment in equity. I am hopeful that, given the Central Bank’s constructive approach, we will be able to develop a workable solution. We are also working closely with the Ministry of Science and Higher Education to build a platform for this. We have formal agreements with more than 100 universities across Russia. We help transform promising scientific developments through expert evaluation, provide early-stage funding, and guide projects towards full-scale scientific and industrial implementation. Furthermore, we have established several centres focused on quantum technologies and the development of energy storage production. Crucially, we have also established a centre for biomedicine, which employs more than 40 highly qualified international professionals who have come to Russia. In total, more than 50 people are involved in our scientific projects. This is an important point, as it demonstrates the appeal of both our research and our scientific work. Overall, Mr President, we are optimistic about the future. We are confident that banks are ready to finance further development, provided there is an appropriate easing of monetary policy. There are reserves and resources available. Last year, depending on the methodology used, banks provided between 50 and 70 trillion rubles in financing to the economy. I am therefore confident in the potential of the banking system and fully expect it to remain in a strong position. Vladimir Putin: Very well.