Mikhail Oseevskiy: the EEU as the major economic role player shall seek for its niche in the global market environment

The Euro-Asian Economic Union (EEU) as the major economic role player shall seek for its niche in the global market environment, - Deputy President and Deputy Chairman of VTB Bank and Chairman of "Special Economic Zones" OJSC Management Board Mikhail Oseevskiy told reporters in Yerevan.

 

Responding to ArmInfo question on a possibility to create integrated industrial clusters in the states of the new economic union aimed at improvement the country industrial power, Oseevskiy mentioned that 

except for specific industries and the Military and Industrial Sector the economies of the former USSR countries became more private and currently the authorities shall not try to invent by themselves but 

to form the the industrial policy considering the demands and opinion of the business. "Currently, the situation globally becomes more and more competitive, new players and new countries are arriving to the scene, technological re-division is underway and each country tries to find new partners, implement new ideas. 

 

The EEU, as a major economic entity should seek for its niche in this market situation. Of course the integration available during the former USSR times is no more available and, apparently, it should be 

formed anew, but on other grounds, based on the demands of the business", -mentioned the Deputy CEO of VTB Bank. According to him, the capital is flowing to the areas where it is interesting, where 

the business is effective and feels comfortable, therefore, people are needed that are able to formulate the ideas and then the State and such entities as VTB Bank are called to support these ideas. "Why I think that Armenia has certain advantages? Because there is widespread and wealthy Diaspora, representatives of which have capital and required competences to restore and development of 

Armenian industry. We the Bankers shall mandatory be in contact with the businesses, set close contacts with them in order to catch and support the idea". "Such heavy-weight institutional investors as VTB Bank, in case if the interests coincide, are ready to take very serious part in implementation of major projects, provide long-term financing within the common economic union", - Oseevskiy mentioned.

 

To note: the Deputy CEO of VTB Bank is in Armenia in order to hold consultations with the Government and the CBA on the matter of elaboration of a modified strategy of the Bank operation in Armenia, 

which would be submitted to the review of the Observation Board of VTB group in September 2015. The Observation Board of VTB group is headed by Aleksey Ulyukayev, the Minister of Economic development of the Russian Federation. Within the frameworks of the new strategy related to the new quality of integration of the EEU member-states, VTB Bank is not excluding the matter of provision of Rouble loans to the Armenian companies operation in the Russian market. "Currently, we see that it is not that easy to manage the situation when the credit is nominated in USD, the self-cost of the goods is formed in AMD and the sale is made in Russia for Roubles. Therefor, we will offer to our clients to move to direct crediting in Roubles aimed at decrease of Currency rate related risks", Oseevskiy mentioned.

 

To remind: recently Nairit factory the industrial flagship factory of the Armenian industry has stopped its operations and it seems for a long time, which had 13% of the global market of polycloroprene rubber in the past. The Armenian experts think that it was the last fact of de-industrialization of Armenia, which was one in the past. According to them, Euro-Asian economy development path would support the restoration of the heavy industry under proper run of industrial policy, which is able to, at least, partially restore the failed integration links available in the USSR territory.  According to the Financial Rating of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), as of 1 July 2015 the corporate loan portfolio of VTB Bank (Armenia) totaled 131.3 bln AMD, total loan book - 214.8 bln AMD. In the corporate loan portfolio of the Bank, the share of trade was over 17%, industry - 16%, construction - about 9%, agriculture - over 7%. SME lending made up 46% of the loan book. As of 1 July 2015, the total assets of the Bank amounted to 316.6 bln AMD.