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01.03.2013

BRICS cooperation for sustainability

BRICSSustainable region

The south of Russia plays to economy of the Russian Federation the same role, as the countries BRICS in global economy: low cash incomes of the population, but positive dynamics of all economic indicators increases a region share in economy of Russia. Foreign investors are usually begin acquaintance to the country in it capital. But after visiting of the southern Russia they have always spoke: «If Moscow is the center, the South is a pearl of Russia». The southern Russia is bordered with the rivers Don and Volga, Black and Caspian sea. Here comes the border between Europe and Asia. During ancient times here passed the well-known silk way.

In the South lives 16 % of the population of Russia (the BRICS countries account for 40% of the world's population and 18% of global GDP). Here 24 % of goods of agricultural industry of the country are produced. But it is the largest consumer market (retail trade turnover constitutes 14 % from the Russian Federation) and investment attractive region (12 % of all investments into Russia). In the last ten years, trade between these countries has grown by an average of 28% annually.

But a primary factor of successful dynamical development is businessmen, who even in a crisis had implemented 19 % of investments of all Russian SME.

Sustainable Bank

Center-Invest Bank is the largest regional bank in the southern Russia. It is really sustainable bank for a sustainable region. In 2007 it recognized Financial Times and IFC by their Awards. In 2011 this rank was confirmed by the magazine The New Economy. For Russian banks the IFRS reporting isn't obligatory, but Center-Invest Bank for 15 years in a row successfully audited in accordance with IFRS (PricewaterhouseCoopers).

The bank has investment rating В1 Moody's. The sustainable banking model used by Center-Invest Bank considers not only as social and ecological responsibility. Sustainable bank business is focused not on momentary speculative profit, and on long-term profit. Such model has allowed to successfully pass crisis and to recover the basic financial indicators for two years.

EE projects lending

More than 6 years Bank actively finances projects of energy efficiency and takes leading positions in Russia by this kind of crediting. Center-Invest Bank cooperates with international financial institutions under crediting energy efficiency projects. More than 200 projects are implemented and the total sum of such projects constitutes about 100 million dollars. Bank financed projects which are implemented in different industries: production of sweets, bread, packaging, agricultural products processing.

Energy efficiency in Russia: problems and decisions.

Russia is the rich country, in which there are many cheap power resources. Therefore their economy isn't so favorable economically. Adjustment of tariffs is based on the annual statement of costs, when the economy of costs at the supplier of power resources leads to decrease in tariffs. But the main problem of introduction energy efficiency technologies has social character: in production, distribution, use the control and adjustment of cheap power resources there is a considerable quantity of people which don't want to lose the work, the status as a result of transition to new energy efficiency technologies.

Center-Invest Bank's success in financing energy efficiency projects is attributable to the fundamentally new approach that we have developed for our customers in southern Russia: sustainable lending. This new strategy combines technical, financial and social engineering.

Cooperation BRICS for a sustainable development

All countries BRICS dream of investments into their economy from developed countries. But each country BRICS has his own investment experience which allows to solve effectively similar problems in other countries. For overcoming of barriers in cooperation between countries BRICS it is necessary to establish a visa-free regime. Such step becomes and for developed countries an indicative example as it is necessary to build modern civilized international relations. Further, cooperation of countries BRICS is not only trade between large multi-national companies, but trade between SMEs.

To promote such partnerships Center-Invest Bank has actively developed and used Internet technologies. Bank has updated the “Partner” Database, an online resource hosted by the portal MBDON.RU. Any company can use this database to find and select a partner from among 50,000 SMEs in the Rostov region. Since the start of the year, more than 35,000 users have accessed the site.

One of Center-Invest Bank's objectives is to help SMEs in southern Russia operate at an international level. To this end, the catalogue of Don companies has been made available in German, English and French, and work is underway on Chinese and Portuguese versions.