Moscow/Washington, March 3, 2008 —
IFC, a member of the World Bank Group, has agreed to invest in KuibyshevAzot,
one of Russia’s leading chemicals manufacturers, helping to create new
jobs by diversifying Russia’s petrochemical industry to include finished
IFC’s $20 million equity investment will help increase Russia’s value-added
exports and improve access to long-term financing that is critical for
the company’s future growth.
“IFC is an important partner in helping us strengthen competitiveness
through product diversification,” said Victor Gerasimenko, President of
KuibyshevAzot. “With IFC’s support we will also be able to expand into
higher-margin products while lowering our costs by modernizing our production
The investment supports a company operating outside Russia’s economic
hubs in the Samara region, 860 kilometers southeast of Moscow on the Volga
River. It is expected to boost the regional economy by creating jobs and
business opportunities for enterprises in Samara and other regions.
“IFC’s equity investment in KuibyshevAzot continues a relationship which
dates back to 2003,” said Somit Varma, IFC Director for Oil, Gas, Mining,
and Chemicals. ”The company first participated in IFC’s Russia Corporate
Governance Project, followed by long-term debt financing in 2005. We now
look forward to growing this relationship as an equity investor.”
As part of its corporate governance work, IFC has trained Russian companies
and advised managers on internationally accepted practices. IFC has also
helped improve corporate governance regulations at the national level in
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
Russia became a member and a shareholder of IFC in 1993. Since then
IFC has invested over $3.6 billion in the country, including $527 million
in syndicated loans, in over 150 projects across a variety of sectors.
IFC’s investment portfolio in Russia currently stands at $2.24 billion,
making it the largest country exposure for IFC globally. IFC has
invested in key sectors including banking, leasing, housing finance, infrastructure,
mining, agribusiness, pulp and paper, construction materials, oil and gas,
telecommunications, information technologies, retail, and health care.
For more information, visit www.ifc.org/europe.