world news - 09.06.2003
IFC and Finland to Continue Cooperation in Russia
This extension builds on the fruitful cooperation between
Finland and IFC, the private sector financing arm of the World Bank Group, in
Russia over the last two years. Within the framework of this cooperation, IFC,
Government of Finland and private sector currently provide technical assistance
to develop the private sector in Russia focusing on 1) forest sector
development, 2) leasing, and 3) information and communication technologies.
The initial cooperation agreement for Russia was signed by the
Prime Minister of Finland, and the President of the World Bank Group in Helsinki
in March 2001. Under this agreement IFC has implemented the above mentioned
three technical assistance programs in Northwest Russia with the following
objectives:
1) to introduce sustainable forestry management practices,
improve wood harvesting and transporting capabilities, foster the improvement of
the enabling environment to encourage investments in modern sawmills and
facilitate business partnerships between Russian and Finnish private firms in
the forestry industry
2) to develop the local leasing industry, provide training and
advice to Russian lessees and develop mutually beneficial links between Finnish
and Russian companies through leasing
3) to develop the local Information and Communications
technology industry in Northwest Russia and to assist Finnish companies to
develop relationships with Russian firms in the Information and Communications
technology sector
"It is vital to implement our cooperation with Russia as a part
of the wider European and international framework in a very close collaboration
with international financing institutions and organisations such as IFC in the
World Bank Group. There is a clear understanding of the increasing role of the
private sector in international cooperation. The Finnish government
wholeheartedly supports IFC’s technical assistance programs in the former Soviet
Union”, commented Ambassador Valtasaari. “At the same time, we in Finland have
learned to highly respect the experience and knowledge the Russians colleagues
bring to this cooperation. It is important that the programs implemented in
Russia draw on the know-how present in Russia and that they are carried out
together with Russian professionals."
“In its ten years of work in Russia, IFC has witnessed
first-hand that integrating its investments with advisory work not only ensures
financial sustainability of our projects, but also that Russian economy and
communities derive much greater benefits from them. That is why IFC is paying
increasing attention to technical assistance work around the globe. We are
grateful for Finland’s past and renewed support of our development efforts in
Russia and look forward to our continued cooperation,” commented Mr. Peter
Woicke, the Executive Vice President of IFC.
Together with the other EU-countries, Finland has actively
participated in efforts to support the political and economic transition process
in Central and Eastern Europe since early 1990's. Finland’s assistance programs
are regarded as a national contribution to the European Union Northern Dimension
Policy. In implementing the cooperation, half of the grant allocations is
channeled through the International Financing Institutions (IFIs). According to
the independent evaluations, cooperation with the IFIs has proven to be
beneficial to all parties. Based on this positive experience, Finland would like
to continue and improve this cooperation. Cooperation with IFC has been carried
out with the Ministry for Foreign Affairs and Ministry of Trade and Industry of
Finland. Neighboring area cooperation between Finland and Russia aims at
increasing mutually beneficial cooperation. It supports the process of political
and economic change in Russia and promotes Russia's participation in European
interaction. In 1992-2003 over 1000 projects have been realized.
The mission of IFC is to promote sustainable private sector
investment in transition economies, helping to reduce poverty and improve
people's lives. IFC finances private sector investments in the emerging markets,
mobilizes capital in the international financial markets, helps clients improve
social and environmental sustainability, and provides technical assistance and
advice to governments and businesses. Since its founding in 1956 through FY02,
IFC has committed more than $34 billion of its own funds and arranged $21
billion in syndications for 2,825 companies in 140 developing countries. IFC's
worldwide committed portfolio as of FY02 was $15.1 billion for its own account
and $6.5 billion held for participants in loan syndications.
Russia joined IFC in 1993. Since then IFC has invested over
$770 million to finance 68 projects across a variety of sectors. IFC
significantly increased its investment program in Russia in the last fiscal year
(July 1, 2001 – June 30, 2002), investing $315 million in 20 projects worth $741
million. IFC’s increased activity reflects the improving investment climate in
Russia, greater opportunities in an increasingly broad range of sectors, and
stronger foreign investor interest.
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