Moscow Russia, June 26, 2012—IFC, a member of the World Bank Group, signed a cooperation agreement with the Association of Regional Banks of Russia to help regional commercial banks develop new products and know-how to expand financing for capital repairs, energy-efficient renovations, and the modernization of multi-family buildings.

Through its Russia Residential Energy Efficiency Project, IFC will advise the association, known as ASROS, on developing financing plans for homeowner associations, housing-management companies, and energy-servicing companies that will support the renovation of multi-family buildings. IFC will also help ASROS develop training curricula, conduct workshops, and disseminate best practices among member banks.  

“Developing best practices in residential energy-efficiency finance opens new business opportunities for regional banks,” said Anatoly Aksakov, ASROS’s President and member of the State Duma, Russia’s parliament. “Interest among our member banks is always high in participating in such programs because they trust IFC and value its international expertise. I am confident of this program’s success.”  

Russia’s residential-housing sector consumes 20 percent of the country’s electricity and 60 percent of its heat. About 60 percent of Russia’s multi-family apartment buildings need repairs, including 96 percent of apartment buildings older than 25 years. The cost for capital repairs in Russia to the year 2035 is estimated at up to 1.7 billion Russian rubles ($53 billion).  

“The need for capital repairs in Russia is enormous, and local commercial banks can play a vital role in providing financing for capital repairs and energy-efficiency modernization of multi-family buildings," said Rolf Behrndt, IFC Regional Business Line Manager for Access to Finance in Europe and Central Asia. "IFC can help banks strengthen expertise in this area. Together with ASROS, we also can provide advice to the federal government and State Duma on legislative improvements.”

The IFC Russia Residential Energy Efficiency Project aims to stimulate investment in the energy-efficient renovation of residential multi-family buildings and to reduce carbon dioxide emissions. The program is being implemented with financial support from Finland’s Ministry of Foreign Affairs and Ministry of Employment, and the Global Environment Facility, in partnership with the European Bank for Reconstruction and Development.

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