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FACTBOX-Russian-German deals agreed at govt consultations

Published 07/16/2009, 09:35 AM
Updated 07/16/2009, 09:40 AM
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July 16 (Reuters) - Russian President Dmitry Medvedev and German Chancellor Angela Merkel held talks on Thursday as part of regular government consultations involving officials from several ministries and companies.

The following deals were signed:

FINANCING SUPPLY

Framework agreement worth around 500 million euros ($704.7 million) between Russian state-owned bank VEB and German state-owned bank Kreditanstalt fuer Wiederaufbau (KfW) on financing supply to Russia.

KfW will give VEB a 500 million euro loan to finance the delivery of equipment from Germany and other European countries for Russian projects, said VEB head Vladimir Dmitriyev. They include the construction of an associated-gas processing plant in Tobolsk that will cost about 30 billion roubles ($936.3 million) and the construction of a timber-processing plant that will cost about 40 billion roubles.

SUPPORT FOR SMALL FIRMS

Agreement on exchange of six loan agreements between KfW and Russian partner banks as part of a Russian-German initiative to support small and medium business.

AIRPORT CONSTRUCTION

Memorandum of Understanding between government of St Petersburg, VTB bank, VTB Capital and Fraport AG on reconstructing and operating Pulkovo airport in St Petersburg.

Fraport said last month a consortium of itself, Russia's VTB and Greek Horizon Air Investments plans to invest 1.3 billion euros to build an airport terminal at Pulkovo by 2013 capable of serving 17.5 million passengers a year, which could be increased to 22 million.

RAILWAY ENGINES

Agreement of intention to create a joint venture in Russia to produce a new generation of railway engines between the Russian Railways company, Siemens and Sinara Group.

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Siemens said in May it plans to set up a Russian joint venture to build locomotives with Sinara Group. The joint venture would be organised on the basis of Sinara's production facilities near the city of Yekaterinburg, in which Siemens is to get a 49 percent stake.

LOGISTICS

General agreement on creation of centre of international logistics between Russian Railways, Deutsche Bahn, St Petersburg University's High School of Management, European Business School and St Petersburg Transport University.

ENERGY

Joint declaration by Russian Energy Minister Sergei Shmatko and German Economy Minister Karl-Theodor zu Guttenberg on energy cooperation.

Documents registered for a new Russian-German Energy Agency.

SCIENTIFIC COOPERATION

Inter-government agreement on scientific and technical cooperation.

FIGHT AGAINST SERIOUS CRIME

On the sidelines of the talks, interior ministries are also signing a memorandum on strengthening the joint fight against serious crimes. (Reporting by Oleg Shchedrov; Editing by Rupert Winchester)

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