Annual Report 2014

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Depository Activities

In 2014, Vnesheconombank's Depository marked the 15th anniversary since it was established within the Bank's structure. Over this period, Vnesheconombank has gained extensive experience in conducting depository activities related to the instruments of the Russian and global securities markets.


Depository services provided by Vnesheconombank are noted for their universal character, a broad range of products offered to clients in relation to depository operations
with securities, prompt and accurate processing of settlement instructions due to highly automated operational processes, a customer tailored and flexible approach to the clients' needs that is ensured through the system of account managers.

Client Servicing

Over the reported period, 53 new clients' depository accounts were opened
with Vnesheconombank. As at 01.01.2015, the number of clients' depository accounts opened with Vnesheconombank was running at 576.


Over 2014, Vnesheconombank effected 31,518 settlement operations over depository accounts on the clients' instructions, demonstrating an 11% increase on the previous year (28,402 operations).


Given the corporate actions by the securities issuers whose titles to securities were recorded on customer depository accounts with Vnesheconombank, 5,972 operations were effected over the period under review, with the yield equivalent to USD 1.13 bn transferred
to customers.


In 2014, securities of 583 issues were accepted for depository servicing
by Vnesheconombank (in 2013 — 532 issues). The number of issues of issue-grade securities increased over the reported period to reach 3,000, whereas the Russian issuers' securities accounted for 30.2%, and foreign and international securities — for 69.8%.

Servicing Sovereign Internal Currency Debt

Over the year under report, Vnesheconombank, performing the functions of servicing sovereign internal currency debt, settled the public debt towards the blocked and special currency account holders amounting to USD 2.74 mn.


In 2014, Vnesheconombank drawing on the federal budget funds made payments
under the V Series Minfin Bonds totalling USD 1.79 mn, including USD 1.24 mn
in redemption of the principle debt and USD 0.55 mn — in redemption of the coupon yield.


With a view to improving the quality of its functions of an agent for the Russian Federation Government to service the sovereign internal currency debt, the Bank upgraded the automated system of settlements with the Russian Federation Ministry of Finance and Russian corporate holders of blocked and special currency accounts. The measures taken are aimed at ensuring prompt and faultless settlements.

Functions of a Paying Agent for Corporate Bonds Backed by State Guarantees of the Russian Federation

In the period under review, Vnesheconombank performed the functions of a paying agent
for 21 issues of Russian corporate bonds totalling RUB 174 bn (at par value) and maturing before 2032.


The bonds were issued against the guarantees of the Russian Federation to attract resources to finance investment projects by OJSC AHML, OJSC ROSNANO, OJSC United Aircraft Corporation, OJSC Western High-Speed Diameter, LLC North-Western Concession Company, State Company Avtodor, and OJSC Main Road.


In 2014, drawing on the issuers' funds, Vnesheconombank effected RUB 16.5 bn worth
of coupon yield payments and payments in redemption of the bonds.


Furthermore, Vnesheconombank entered into an agreement to perform the functions
of an agent for the Russian Federation Ministry of Finance as the guarantor of obligations
of OJSC AHML under the new bond issues of the A28-A30 series amounting to RUB 15 bn and maturing in 2029-2033.

Development of Depository Services

In the period under review, Vnesheconombank started performing the functions of a tax agent for dividends paid to the clients on the shares of Russian issuers.


As at the end of 2014, Vnesheconombank had electronic document management system
in place with all the 20 registrars keeping the accounts of Vnesheconombank as a nominee holder.


Since 2014, Vnesheconombank has been posting a calendar of foreign issuers' upcoming corporate events on its website. This will help the Bank's clients stay informed and monitor the deadlines to submit their applications.


Furthermore, VEB website contains information and guidance materials concerning taxation of income from securities in the USA, Canada and France. The guidance materials provide information on taxation procedures, applicable tax rates, documents and procedures required to obtain a preferential tax treatment for income from foreign securities.