World Bank's MIGA Hosts Investor Forum
Event highlights benefits of non-commercial risk insurance
MOSCOW, March 1, 2006—Russian investors interested in opening up businesses in emerging markets can offset potential non-commercial risks to their investments with help from the Multilateral Investment Guarantee Agency, a member of the World Bank Group. That was the key message of an investor forum held today in Moscow.
The event, hosted by MIGA and the Russian Association of Industrialists and Entrepreneurs (RSPP) and organized with help of the World Bank and thePrivate Sector Liaison Program (PSLO), drew some 75 Russian investors representing all sectors. Kicking off the event were Yukiko Omura, Executive Vice President of MIGA, Viktor Vekselberg, Chairman of the International Committee of RSPP and Chairman of the Board of the "Renova Group" of Companies, and Alexander Shokhin, President, RSPP.
Omura's comments focused on how MIGA's political risk insurance can help Russian investors overcome the types of risks they may confront in developing countries, including breach of contract, war, civil disturbance, and terrorism, currency transfer restrictions, and expropriation.
"MIGA's involvement in a project offers comfort to investors and lenders, protecting investments against harmful government actions, mediating disputes at the first sign of trouble to keep investments going, and ensuring prompt payment of claims," she said.
Omura highlighted the improved financial terms encouraged by MIGA's coverage, including better access to project finance, lower borrowing costs, and longer loan tenors. "Investors and lenders also gain the added benefit of MIGA's extensive country knowledge, as well as our social and environmental expertise," she said.
Outflows of foreign direct investment from the Russian Federation have increased substantially over the past few years. Of this amount, roughly a third involves Russian investment in the energy sector. "Given the ongoing growth in demand for power in developing countries, it is critical for us to tap into new investment sources, such as Russian investors, to meet this need," said Omura.
Also presenting at the event were Kristalina Georgieva, Russia Country Director for the World Bank, Arkady Dvorkovich, Head of the Expert Department of the President of Russian Federation, Peter Cleary, General Counsel, MIGA, Grigory Rapota, General Director, Eurasian Economic Community, Alexey Likhachev, Deputy Chairman, Economic Policy, Business and Tourism Community, Andrey Kuznetsov, Executive Director of RSPP and Private Sector Liaison Officer in Russia, Igor Vdovin, Chairman, National Agency for Investment (NADI), Elena Palei, Senior Underwriter, MIGA, and Greg Answermino, Director of Corporate and Investment Banking, Standard Bank.
"Russia's private sector is essential for the growth prospects of its neighboring countries. We at the World Bank Group are looking for ways to support Russian companies able to make a positive contribution to the development of the region, and MIGA's guarantees are well suited to provide such support," said Kristalina Georgieva.
Vekselberg stressed that stable economic growth in Russia has spurred Russian investment abroad, but noted that Russian businesses are not taking full advantage of the tools being offered by the World Bank Group, and MIGA in particular, to encourage investment in developing countries.
During the forum, MIGA and NADI announced the launch of a regional version of MIGA's FDIPromotionCenter—an online knowledge-sharing and learning portal for investment promotion professionals. The centerpiece of the portal is a toolkit that provides a step-by-step guide to investment promotion. The regional FDIPromotionCenter, which is in Russian, incorporates local case studies and best practices. NADI plans to use the toolkit and portal to train investment professionals and officials in the region.
For information
In Moscow: Marina Vasilieva, , tel 7 495 7450000 ext. 2045
In Washington, DC: Angie Gentile, , 202.473.3509