Moscow, April 29, 2004—The International
Finance Corporation (IFC), the private sector lending arm of the World
Bank Group, signed an agreement today to provide $15 million in long-term
debt to JSC Russkiy Mir and its subsidiary, JSC SFAT, for the purchase
of rail tank cars to expand their fleet. IFC’s investment is aimed
at providing long-term financial support for the expansion and modernization
of Russia's rail industry and the expansion of Russia's oil transportation
capabilities.
JSC Russkiy Mir and JSC SFAT are privately owned Russian rail transport
companies and have been active in the oil transportation market for over
ten years. The two companies lease rail tank cars to Russia's oil companies,
which utilize the cars to transport crude oil and oil products, and provide
rail car maintenance services.
Francisco A. Tourreilles, IFC’s Infrastructure Department Director, noted:
“IFC’s financing of JSC Russkiy Mir and JSC SFAT is part of the Corporation's
financial support of Russia's private rail industry. The Russian
rail industry is playing an increasingly important role in oil transportation
by removing bottlenecks and increasing oil exports. Over the next
five years, private investment in Russia's rail industry will play a critical
role in its modernization and expansion.”
“By supporting a leading private Russian rail car leasing company, this
investment will contribute to the development of the country’s transportation
infrastructure. We look forward to working with JSC Russkiy Mir and JSC
SFAT in supporting their future investments,” said Edward Nassim, IFC’s
Director for Central and Eastern Europe.
Michal Litwak, General Manager of SFAT, pointed out the importance
of having IFC as a partner, “Our group is committed to improve upon
the quality of transportation services available to Russia's oil companies
and having IFC as an investor is an important part of that commitment.”
Russia became a shareholder and a member of IFC in 1993. Since then IFC
has invested over $1.3 billion to finance nearly 70 projects across a variety
of sectors. IFC significantly increased its investment program in Russia
in the last two years, investing $217 million in FY02 (July 1, 2001 –
June 30, 2002) and nearly $500 million in FY03. 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.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC's worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.