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
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
For more information about the Association
of Regional Banks of Russia, please visit http://www.asros.ru/.