The government will change the model for managing development institutions

According to the decree of the government published on April 6, the clauses of the decree of Prime Minister Mikhail Mishustin of the end of 2020 on the reform of development institutions, in which the state corporation VEB.RF is endowed with the status of their manager, and the decree of March 2021, which consolidated this status of a state corporation, are recognized as invalid.

The reform of institutions was carried out by the government at the end of 2020. As a result, VEB came under the control of the SME Corporation (where VEB, as of February, had less than 30% ownership) and the Russian EXPORT Center (VEB's subsidiary), as well as those organizations in which it was not a shareholder, in particular, Rosnano, Skolkovo, the Fund for Assistance to the Development of Small Forms of Enterprises in the Scientific and Technical Sphere, the Fund for Infrastructure and Educational Programs and the Industrial Development Fund. At the same time, it was decided to liquidate six institutions, transferring their functions to VEB and executive authorities.

On February 23, 2020, VEB.RF came under blocking US sanctions - it was included in the Special Designated Nationals list, which, in fact, is the most severe variant of restrictions. The state corporation was included in the sanctions list along with its subsidiaries, including InfraVEB (specializes in investments in infrastructure), VEB Ventures investment fund, VEB Capital, VEB-Leasing (owns, in particular, aircraft ), the Sibuglemet coal group, the Russian Export Center (REC), etc.

Adding a company to the SDN means blocking its assets in US jurisdiction, a ban on DOLLAR transactions and any transactions with US counterparties (including through correspondent accounts). At the same time, sanctions do not automatically apply to structures in which a member of the list owns less than 50%.