History

Modern agribusiness production systems are capital intensive. As such, a large portion of capital used in agribusiness is borrowed. Credit is necessary to facilitate input purchases and can be a significant cost of production. The availability and use of credit plays a significant role in the sustained profitability of agribusiness enterprises.

The agrarian credit system in Russia goes back to 1882 when the first specialized banks –‘Peasant Land Bank’ and ‘Gentry Land Bank’ – were established. During the Soviet period about 90% of all long-term loans were extended to agribusiness. At that time the sector included 35,000 offices all over the USSR and employed 110,000 people.

Russian Agricultural Bank (RusAg) was set up in 2000 under the special Decree of the President of the Russian Federation with the mission to be the conductor of the state credit and financial policy in agribusiness sector, to facilitate a strong performance by clients, to invest in the core businesses and technology and to be the basis of the national credit and financial system of agribusiness in the Russian Federation.

100% of RusAg’s shares are controlled by the Russian Federation, represented by the Federal Agency on Federal Property Management which holds the Bank’s issued and outstanding ordinary shares (71.3% from total share capital), the Ministry of Finance of the Russian Federation which holds the Bank’s issued and outstanding preference shares (7.65% from total share capital) and the State Corporation “Deposit Insurance Agency” which holds the Bank’s issued and outstanding Type A preference shares (21.05% from total share capital).

Since its establishment in 2000, Russian Agricultural Bank has made considerable efforts to grow from the unknown newly established Bank to one of the top 5 financial institutions of the Russian Federation. It has established the second largest branch network in the country and became a leader in agribusiness lending. Through its regional branches and additional offices RusAg offers a highly varied range of financial services and products. Such a position nearby its broad customer base coupled with the diversity of its activities enables RusAg to achieve stable results and to respond to the changing needs of its clients.

KEY HISTORICAL EVENTS

2000

  • Set up in 2000 by the Presidential Decree to implement state policy in agribusiness and facilitate development of rural areas.

2001

  • Two state capital increases of RUB 430 million and RUB 2 billion.
  • Compensations distribution in Federal Program “Reconstruction of the economy in Chechnya”.

2002

  • Launch of lending program for personal household plots owners.
  • Obtaining license on attraction of retail deposits.
  • State capital increase of RUB 994 million.

2003

  • Capital reached RUB 4.9 billion.
  • The Bank as a State Agent embarked on the program aimed at financial rehabilitation of agribusiness enterprises.

2004

  • Moody’s Interfax Rating Agency assigned RusAg national scale ratings.
  • First Ruble bonds issue.

2005

  • Moody’s Investors Service and Fitch Ratings assigned RusAg ratings at investment grades.
  • First Eurobond issue of USD 350 million.
  • Capital increase of RUB 6.1 million.

2006

  • No. 729 by The Banker.
  • No. 2 by branch network.
  • State Agent in the National Project on Agribusiness Development.
  • Capital reached RUB 20.9 billion.
  • Over 40% share in agribusiness.
  • Joined Top 10 largest banks by total assets.

2007

  • No. 472 by The Banker.
  • Over 50% share in Agribusiness.
  • Best Financial Borrower 2007 in the Central and Eastern Europe by Euromoney magazine.
  • No. 6 by net assets and shareholder equity.
  • Authorized capital reached RUB 27.7 billion.

2008

  • No. 372 by The Banker.
  • No. 4 by capital and assets.
  • Key Bank in State Program on Agribusiness Development 2008-2012.
  • Best Local Trade Bank in Russia by Trade Finance Magazine.
  • 58% share in Agribusiness.
  • Capital increase by RUB 2 billion and RUB 31.5 billion.

2009

  • No. 276 by The Banker.
  • Leader in regional branch network development by the Association of Russian Banks.
  • Capital increase by RUB 45 billion.
  • RusAg’s bonds included in the first class quotation list “A” of the MICEX Stock Exchange.
  • No. 3 among 100 most reliable banks of the Russian Federation in March 2009 by the Forbes magazine.

2010

  • No. 196 by The Banker.
  • RUB 825 million capital increase.
  • RUB 1 billion capital increase.
  • No. 2 among 100 most reliable banks of the Russian Federation in May 2010 by the Finance magazine.
  • No. 4 among the largest banks of the Russian Federation in terms of assets and capital according to Kommersant.
  • Laureate of the annual National Banking Premium in the nomination “Leader in lending to the real sector of economy”. 

2011

  • No. 212 by The Banker.
  • RUB 40 billion capital increase.
  • No. 3 among the most reliable banks of the Russian Federation according to Forbes banking ranking.
  • No. 4 among the largest banks of the Russian Federation in terms of assets and capital according to RBC Rating and Interfax.
  • Ranked 1st in terms of SMEs loan portfolio increase among the largest banks of the Russian Federation.
  • Key Bank in State Program on Agribusiness Development 2008-2012.
  • Over 3 million customers.

2012

  • No. 2 largest branch network in the Russian Federation according to RBC Rating.
  • No. 4 among the largest banks of the Russian Federation in terms of assets according to Expert RA.
  • No. 189 by The Banker.
  • RUB 40 billion capital increase.
  • Key financial institution implementing State Program on Agribusiness Development 2008-2012. Total amount of financial resources provided in terms of the Program exceeded RUB 1.7 trillion.
  • Over 70% share in the seasonal field works financing.

2013

  • No. 159 by The Banker
  • Key financial institution implementing State Program on Agribusiness Development 2013-2020.
  • RUB 30 billion capital increase.

2014

  • No. 159 by The Banker
  • Key financial institution implementing State Program on Agribusiness Development 2013-2020.
  • Over 6 million customers.
  • 2 capital increases totalling RUB 30 billion.
  • Total loans extended by RusAg under the State Programs on Agribusiness Development and Market Regulation for Agricultural Products, Raw Materials and Foodstuffs 2008-2020 amounted to RUB 2.5 trillion.
  • RusAg debuted at number 337 totally and number 7 among Russian banks in the list of Top 500 Banking Brands.

2015

  • 2nd largest branch network in the Russian Federation.
  • Ranked No. 4 among Russia’s largest banks in terms of capital.
  • Ranked No. 262 by The Banker in terms of Tier 1 capital.
  • Key financial institution implementing the 2013-2020 State Program on Agribusiness Development.
  • 2 capital increases totaling RUB 78.8 billion.
  • Total loans extended under the National Priority Project “Agribusiness Development” and within the framework of the 2008-2020 State Programs on Agribusiness Development amounted to RUB 3.5 trillion.
  • 5.6 million customers.