Russia's VEB will need new capital injection in future: Prime Minister

FILE PHOTO: Dmitry Medvedev, who was nominated by Russian President Vladimir Putin as the candidate for the post of Prime Minister, attends a session of the State Duma, the lower house of parliament, in Moscow Russia May 8, 2018. Sputnik/Alexei Druzhinin/Kremlin via REUTERS

MOSCOW (Reuters) - Russian state development bank VEB, which is to be the main vehicle to implement economic goals set by President Vladimir Putin earlier this month, will need a capital injection in future, Russian Prime Minister Dmitry Medvedev said on Tuesday.

Russia will need to spend at least 8 trillion rubles ($128 billion) over the next six years to meet economic goals set in new decrees that Putin signed after being sworn into the presidency at the start of May.

“The bank is in the new stage of development now - VEB should become the main instrument for realisation of tasks set by the President’s May decree,” Medvedev was quoted as saying by a government statement at a meeting of VEB’s board of directors.

Medvedev said he had already discussed VEB’s future capital injection with recently appointed VEB’s new head Igor Shuvalov, who is Medvedev’s former first deputy.

Russia’s 2018-2020 state budget currently sees state support for VEB at 100 billion rubles per year.

The size of the future capital injection for VEB, which reported a net loss of 287.7 billion roubles in 2017, will be decided by Russia’s finance ministry, Shuvalov was quoted as saying by TASS news agency after the meeting.

Reporting by Darya Korsunskaya and Polina Devitt; writing by Tom Balmforth and Polina Devitt; editing by David Evans