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Sberbank of Russia to finance $3.6 billion worth of transportation projects in Kazakhstan

Photo courtesy of Kazakhstan Temir Zholy© Photo courtesy of Kazakhstan Temir Zholy©

Sberbank of Russia will provide $3.6 billion to finance projects of Kazakhstan's national railway company Kazakhstan Temir Zholy (KTZ), Tengrinews correspondent reported from the 27th plenary session of the Foreign Investors Council (FIC) chaired by the President of Kazakhstan. FIC is an advisory body working to improving the investment climate in Kazakhstan and address issues of foreign investment into the country. 

The signing ceremony was attended by Kazakhstan’s Prime Minister Karim Massimov. The agreement was signed by the head of KTZ Askar Mamin, the President of Sberbank of Russia Herman Gref and the Chairman of the Board of the bank’s subsidiary in Kazakhstan Alexander Kamalov.

“As part of the second phase of the industrialization program, Kazakhstan has ambitious goal pertaining to diversification of the economy that require a substantial amount of investments. Sberbank is ready to offer a new form of cooperation within the framework of public-private partnership and provide financing for large industrial and infrastructure projects jointly implemented by state-run, private companies and development institutes," German Gref said.

The total amount of investment will make $3.6 billion. The funds will be used for a whole range of projects, including the Western Europe - Western China transport corridor in Russia, transport and logistics centers in Kazakhstan, sea port infrastructure, especially in Aktau, and trunk railway lines in Kazakhstan.

“By signing the Memorandum, we express our readiness to provide high-quality banking services and financial support to KTZ,” Kamalov said.

In addition, Sberbank of Russia and its subsidiary signed a memorandum of cooperation with Astana EXPO-2017 company, the Kazakh national company responsible for organizing the international fair in Kazakhstan in 2017. The bank expressed its readiness to finance some of the EXPO 2017 projects and provide banking services to subsidiaries of Astana EXPO-2017 company.

Reporting by Altynai Zhumzhumina, writing by Dinara Urazova

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