Russian Agricultural Bank, as the key lender to Russian agribusiness, puts a high priority on corporate social responsibility.
The Bank’s sustainable business practices link back to its mission, vision, and values and are targeted at ensuring national agribusiness development, domestic food security, Russia achieving the status of the world's leading food producer and exporter, increasing financial literacy, and upgrading the overall welfare of the country’s rural population.
This is achieved through supporting small- and medium-sized enterprises (SMEs) and young professionals, developing rural territories and mid-sized cities, promoting innovations and resource-efficient technologies in agribusiness, financing priority import substitution projects, facilitating investments and improving the investment climate, diversifying the product range, increasing access and affordability to high quality financial services, reducing the environmental impact of the Bank’s activities, and promoting the rational use of arable land.
The business and society partnership is an integral part of successful sustainable development for any organization.
RuAg’s overall strategic approach to sustainability is determined by its mission and is reflected in its long-term strategic goals. The Bank’s sustainable business practices are made up of the following:
As the backbone financial institution for agribusiness financial support, Russian Agricultural Bank, for more than 12 years now, has participated in sustainability programs focused on social aspects and initiated by the Russian Government. The Bank has been specially designated as the key financial institution for implementing the State Program on Agribusiness Development.
The State Program encompasses numerous key focus areas – all aimed at respective sub-sector development. The key focus areas are as follows:
· Lending for various purposes, such as: machinery, livestock, grain, fuel, and fertilizer purchases, land, warehouses and facilities leases with priority given to agribusiness producers, farmers, agricultural consumer cooperatives, food processing companies, fisheries and aquaculture producers, and markets and shopping facilities;
· Financing seasonal field work. The Bank accounts for 71% of total seasonal field work financing. RUB 190 billion in loans was issued for this purpose in 2015;
· Lending to agricultural credit and consumer cooperatives. This type of support contributes to closer cooperation and integration in rural areas. Credit and consumer cooperatives are an important vehicle for rural financial stability;
· Financing investment projects for constructing and upgrading greenhouses, and livestock and fish breeding facilities. Since 2013, Russian Agricultural Bank has provided credit support to 753 investment projects;
· Developing all forms of small business, including family-operated farms and start-ups. Fostering agribusiness start-ups creates new jobs for young professionals and keeps qualified personnel in rural areas;
· Federal and regional programs, whereby agricultural producers receive subsidies to partially compensate for interest expenses on loans.
In addition, the Bank is involved in implementing numerous special purpose federal sub-programs:
· Sustainable development of rural areas. This program is aimed at upgrading living standards, stimulating investments into agribusiness, strengthening positive attitudes towards rural life, and developing non-agricultural production and employment. It also promotes the creation of high tech employment opportunities;
· Social development of rural settlements;
· Conservation and restoration of soil fertility, reclamation of arable land;
· The Federal Project Finance Program. This program is designed to boost domestic production in real economic sectors. In particular, as part of the State Project Financing Program, the Bank has already implemented seven large-scale agribusiness investment projects. Total refinancing for these purposes received from the Bank of Russia at below-market interest rates exceeds RUB 16 billion;
· Support for export-oriented businesses in cooperation with the Russian Export Insurance Agency (EXIAR). This provides customers with the opportunity to work within the framework of the Customs Union (in a unified economic area) via its sales and service channels;
· State program for residential construction development. The program supports residential construction for certain categories of citizens, and enhances the quality of utility services;
· State program for automobile industry development.
SMEs are the key economic growth driver in many developed countries. They also play an increasingly important role in Russia’s social and economic development. Currently, the Bank offers more than 30 lending programs tailored to this business segment. Since the start of the State Program on Agribusiness Development in 2008, Russian Agricultural Bank has provided approximately RUB 440 billion in loans to small businesses.
The Bank signed a Cooperation Agreement with the Federal Corporation for SME Development (formerly – the Credit Guarantee Agency), incorporated to support small- and mid-sized enterprises and forge a national system of guarantee institutions. Russian Agricultural Bank is included in the SME Lending Stimulation Program. The Program stipulates refinancing from the Bank of Russia to selected commercial banks which will be backed by a surety/guarantee issued by the Corporation. The funds will be provided at a reduced interest rate.
Russian Agricultural Bank also cooperates with public organizations in promoting SME development, including OPORA-Credit, a financial Internet project (www.opora-credit.ru) launched by OPORA ROSSII, an all-Russian public organization focused on SME development.
Increasing the availability of financial resources for small businesses and the rural population is a task of paramount importance at the federal level and is predictably one of the Bank’s key priorities. Higher banking sector penetration increases sector competitiveness, thus promoting social equality, and inclusive and sustainable economic growth.
In 2015, the Bank grew its agribusiness portfolio RUB 34.8 billion, supporting the sector’s development across its footprint. During the year, Russian Agricultural Bank continued to focus on upgrading product and service offerings to meet the requirements of all types of entities working in rural and semi-urban areas: farmers, household plot owners, and larger agricultural enterprises.
In almost every region, Russian Agricultural Bank provides financial support to entrepreneurs employed in trade, tourism, household services, and other services not directly related to agribusiness. Thanks to this, the commercial sector, in fact, is also engaged in developing rural territories. About 50% of the Bank’s offices are located in rural communities and small towns. The Bank increases the operational efficiency of its POS setup, location and overall business processes, thus satisfying the real needs of local communities.
In line with national development priorities, the Bank places a special focus on financing promising investment projects in the Far East that facilitate better social and economic conditions in the Region and enhanced environmental activity. In particular, in 2014, the Bank concluded an agreement with the Kamchatka Development Corporation.
Russian Agricultural Bank leverages its countrywide footprint and strengthens liaisons with regional authorities, SME financing funds and guarantee agencies in the territories in which it is present to prepare and implement regional development strategies and federal policies in economic, social, educational, and other spheres.
As part of this effort, the Bank signed 82 bilateral cooperation agreements with Russian regional authorities to implement the 2013-2020 State Program on Agribusiness Development.
Russian Agricultural Bank is a financial partner of the Strategic Initiatives Agency. This partnership promotes socially important projects, with a focus on innovations and upgrading the agribusiness investment climate.
The Bank regularly hosts roundtable discussions that bring together regional authorities and potential investors in agribusiness and related spheres. The Bank’s specialists also engage in disseminating and incorporating ecological practices and environmentally responsible policies into corporate culture.
As a corporate citizen committed to meeting societal needs and expectations, Russian Agricultural Bank extends tangible help to local communities via charitable activities, sponsorships, and donations. The Bank promotes philanthropic activities, emphasizing key priority areas for Russia’s social and economic development and defined by Bank shareholders – namely, developing the country’s health care and education system, preserving Russia’s cultural and historical heritage, and promoting spirituality.
In 2015, Russian Agricultural Bank engaged in philanthropic activities in four key areas relating to community support, education, spiritual education, and sports and physical education.
The Bank views the protection of the environment and engendered species as a civic duty for responsible corporations. In 2015, the Bank proceeded with carrying out the Amur Tiger Protection Project. Russian Agricultural Bank became the primary sponsor of its mass media campaign, which effectively combined the resources of a commercial and non-profit entity to increase the number of Amur tigers in Russia and expand their habitat. Later, the Bank launched a payment card that gives cardholders a unique opportunity to help conserve this rare species without incurring any expenses.
Raising funds in favor of the victims of Lionrock Typhoon
As the Lionrock typhoon struck the Russian Far East – the Maritime Territory - a state of emergency was declared. 13 municipalities and some 2,500 houses were flooded with a dozen roads blocked from floodwater, and 17 settlements cut off communication.
Monetary funds can be transferred to the special account opened by the Primorsky Charity Fund for Children and Maternity Assistance "Mama".
Account details of the Primorsky Charity Fund for Children and Maternity Assistance "Mama":
Tax Payer Identification Number: 2540110192
Tax Registration Reason Code: 254001001
The Far-Eastern branch of PJSC Rosbank in Vladivostok
Correspondent account: 30101810300000000871
Settlement account: 40703810445510000020
Bank identification code: 040507871
Payment purpose: donation for the flood victims.