BelVEB Bank’s open credits to build Belarusian nuclear station at $8.3bn

The Belarusian bank BelVEB has opened credits to the tune of $8.262 million for the Russian company ZAO Atomstroyexport within the framework of the Russian state loan for building the Belarusian nuclear power plant. The information was released by BelVEB Bank Chairman of the Board Pavel Kallaur on 12 June, BelTA has learned.

The united company OAO NIAEP – ZAO Atomstroyexport is part of the state corporation Rosatom and is the general designer of the Belarusian nuclear power plant and the general contractor in charge of building the facility.

“So far $369.5 million out of the sum has been spent. If the work goes faster, money will be spent faster,” said the executive.

In November 2011 the governments of Russia and Belarus signed the agreement on the state export loan of up to $10 billion to build the nuclear power plant in Belarus. The Russian state corporation Vnesheconombank and the Belarusian bank OAO BelVEB Bank are the agent banks in charge of servicing the loan. On 16 August 2012 BelVEB opened the first credit for transactions required for the contracts to build the Belarusian nuclear power plant.

At the same time the Belarusian Finance Ministry requested Vnesheconombank to lend up to $500 million for up to ten years to finance the advance payments the nuclear station project requires. It was stated in late 2012 that the commercial credit line was going through approval procedures on the Russian and Belarusian sides. It was assumed that the Russian bank Vnesheconombank (the parent company of Bank BelVEB) will allocate $460 million while Eximbank of Russia (part of Vnesheconombank Group) will provide $40 million.

Now the sides are close to getting the $500 million credit agreement ready for signing. The document will be signed by the Belarus government, Vnesheconombank, the Russian insurance company EXIAR, ZAO Eximbank of Russia, and OAO BelVEB Bank. BelVEB will act as the settlement bank for this loan.

The general contract to build the Belarusian nuclear power plant was signed in Minsk on 18 July 2012. The Belarusian nuclear power plant will have two power-generating units with the total capacity of up to 2,400MW (1,200MW each). It will be built at the Ostrovets site in Grodno Oblast.

OAO BelVEB Bank (Belarus) is a major bank, which is part of Vnesheconombank Group. The share of Vnesheconombank (Russia) in the authorized fund of BelVEB Bank is 97.52%, the share of the Minsk City Territorial State Property Fund is 2.29%.