VEB took part in raising 4 billion rubles for the development of the Cherepovets industry

In the monotown of Cherepovets on the territory of the Cherepovets industrial park, two large industrial facilities were opened.

Part of the funds for the construction of infrastructure for the park was allocated from the Fund for the Development of Monotowns, which belongs to the VEB.RF Group. Over 400 million rubles of the Fund’s funds were spent for these purposes. In total, about 4 billion rubles were attracted to the economy of Cherepovets, and 1,000 jobs appeared.

A plant for the production of steam and hot water boilers “NORD” and an enterprise for smart electricity meters “NARTIS” were opened in Cherepovets (over 100 and 250 jobs, respectively). The MONOTOWN.RF Foundation provided the construction of the engineering and transport infrastructure of enterprises, the total cost of which is estimated at 1 billion rubles. 400 million of this amount are the funds of the Fund. In 2018, a plant for the production of fibrolite boards and wall panels of the company “Fibroplite” began to work in the park. To implement this project, the Fund provided a preferential loan for 950 billion rubles at 5 percent.

The Governor of the Vologda Oblast Oleg Kuvshinnikov and the Mayor of Cherepovets Vadim Germanov took part in the opening ceremony of the factories. The meeting was also joined via video link by the chief managing partner for urban development VEB.RF, CEO of the Single-industry Towns Development Fund Irina Makieva and representative of the Federation Council from the regional executive power Elena Avdeeva.

As Makieva noted, Cherepovets is included in the TOP-10 single-industry towns of the Russian Federation several times, he also received support from the Fund. Among other things, the city takes part in the project to implement the Sustainable Development Goals together with the capital. In this regard, VEB is going to invite Cherepovets to the program for the hundred largest cities of the country, in which the capital of the region already participates, in order to continue working on the development of single-industry towns and improving the quality of life of local residents.

Irina Makieva, Chief Managing Partner for Urban Development of VEB.RF, General Director of MONOGORODA.RF, noted that all the Fund’s instruments will be kept within the VEB perimeter. Such instruments include loans at 0 percent for projects ranging from 5 to 250 million rubles, as well as loans at 5 percent for larger projects (250 million – 1 billion rubles). The Fund’s instruments include non-refundable subsidies for the construction and reconstruction of infrastructure facilities. VEB.RF will be waiting for applications from new residents of Cherepovets and business representatives from other single-industry towns.

The head of the region said that with the opening of the enterprise, the needs for equipment for heating systems throughout Russia are met. Relatively recently, about 60 percent of such equipment was supplied from abroad, and now the entire volume will be produced by Russian enterprises, which will cover the need for it throughout the country. As the governor noted, the gasification and post-gasification programs, which were previously launched by the President of the Russian Federation, will be implemented using Cherepovets equipment.

In his speech, Kuvshinnikov drew attention to the fact that the infrastructure built with the help of the Fund contributed to the attraction of new residents to Cherepovets and the prompt commissioning of investment projects.

The organization is included in the VEB.RF Group, which works to achieve national development goals. The consolidation of public and private investment resources to create comfortable living conditions for citizens and the breakthrough development of Russia in the field of industry, infrastructure, non-commodity exports, small and medium-sized businesses, the urban economy, innovation and information technology is a priority for the Group.

The Russian government had previously decided to liquidate the Fund. This decision was made as part of the implementation of the reform of development institutions. MONOGORODA.RF continues to accept applications until the transfer of existing obligations to VEB.RF. Projects that the organization does not have time to finance will be submitted to VEB for consideration.