Execution of agreement between Roseximbank, OJSC “Power Machines” and the Ministry of Energy of the Republic of Belarus

On May 30, 2007 Roseximbank, OJSC “Power Machines” and the Ministry of Energy of the Republic of Belarus executed the trilateral framework agreement. From the Russian side the agreement was executed by Nikolay Gavrilov, Chairman of the Management Board of Roseximbank and Boris Vainziher, General Director of OJSC “Power Machines” and from the side of the Republic of Belarus – by Mikhail Mikhadyuk, Deputy Minister of Energy. Vladimir Semashko, First Deputy Prime-Minister of the Republic of Belarus also attended the ceremony of signing the agreement.

The agreement providing for development of the mutually beneficial cooperation between the parties in the sphere of energy sets forth the main principles of financing and guaranteeing the supplies of the Russian power engineering equipment performed by OJSC “Power Machines” for the power generating facilities of the Republic of Belarus, and provides for the extending by Roseximbank in the capacity of the bank-agent for the Russian Government in charge of providing the state support for the export of the industrial products the purpose loans secured by the Government of the Republic of Belarus.

The total volume of loans is set at the level of up to 2 billion US dollars for the period of 5 – 7 years. The maximum terms of the loans depending on the types of the exported goods vary between 5 – 10 years.

It is contemplated that the projects for reconstruction of the following facilities will be financed under the agreement: Minskaya HEGP-5, Brestskaya HEGP-2, Bobruiskaya HEGP-2, Vitebskaya HEGP, which implementation is provided for by the State complex program for modernization of the main industrial assets of the power generating system of the Republic of Belarus, energy saving and increase of the share of the Belorussian fuel and power generating resources in 2006 – 2010 years.

The execution of the agreement is an important step in the implementation of the measures supporting the export of the Russian industrial products on the state level.