Moscow, June 17, 2008 - World Bank Group President Robert B. Zoellick today said the institution planned to expand its cooperation with Russia in addressing global problems such as climate change and the food crisis as he completed his first trip to Moscow where he met with President Dmitry Medvedev and Prime Minister Vladimir Putin.
"What started as a relationship between lender and borrower fifteen years ago has evolved into broad-based global cooperation,"Mr. Zoellick said. "We now work together on sharing knowledge and international best practices to advance Russia's social and economic development. We are also partners for international development to overcome global problems such as climate change and increasing food prices that severely affect the poorest countries."
Based on the Joint Country Partnership Strategy of December 2006, the World Bank Group focuses on direct cooperation with Russia's regions, either through direct lending without federal guarantees, or through the provision of fee based services. In addition, the Federal Government and the World Bank have agreed to develop an instrument to allow the application of the Bank's project design and management and its operational guidelines for selected Federal funded projects. The Bank and the Russian Federation are working together to strengthen Russia's emerging international role as a provider of assistance to developing countries.
"The Bank aims to provide the knowledge services that are best matched to Russia's priorities. The new government is not resting on its success, and is now looking to broaden and diversify economic growth. We are looking forward at how best we can support Russia's development plans," said Mr. Zoellick.
Since 2007, the World Bank Group has moved to direct cooperation with 17 of Russia's regions and municipalities in the framework of the Regional and Municipal Development Program endorsed by the Government. The new instruments have already helped introduce, among others, Public-Private Partnerships schemes for the implementation of infrastructure projects in St. Petersburg and in the city of Kazan; strengthened regional administration capacity in the Khanty-Mansijsk, including a diagnostic of the public finance management system; and financing for healthcare infrastructure development in the Voronezh Oblast.
During the visit, Mr. Zoellick signed a Memorandum of Understanding between the World Bank Group (IBRD and IFC) and the Russian Development Bank/VEB to confirm the mutual intent to work together on joint financing of infrastructure projects, strengthening appraisal and supervision capacity in VEB, developing systems for managing social and environmental impacts, as well as identifying carbon finance opportunities and enhancing the growth and sustainability of small and medium enterprises.
"We are pleased to be partnering with the Russian Federation, and congratulate Russia on its macroeconomic achievements that provides for a solid basis to weather challenges ahead," said
Zoellick. "Russia's active involvement is needed to tackle global issues and Russia requires international know-how to modernize its economy so that all Russians may benefit."
Between 1999 and 2007, annual real GDP growth in Russia averaged 7 percent, accelerating to 8.1 percent in 2007. The key challenge ahead lies in maintaining the balance between macroeconomic stability, especially addressing inflation through appropriate monetary and fiscal policies and investing in the country's future, particularly in infrastructure, education, and health.
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