MOSCOW, RUSSIA- (June 10, 2003) Earlier today, the U.S. Trade and Development Agency (USTDA) awarded a $170,658 grant to the Agency for the Development of International Cooperation, an office of the Cabinet of Ministers of Tatarstan, to fund Phase I of a feasibility study on the development of an investment bank. The grant was conferred in a signing ceremony held in Moscow. The Deputy Chief of Mission at the U.S. Embassy in Moscow, John R. Beyrle, signed the grant agreement on behalf of the U.S. Government. The Director of the Agency for the Development of International Cooperation, Pavel Emikeev, signed the agreement on behalf of the Grantee.

Tatarstan is an autonomous republic that is a constituent member of the Russian Federation. It has substantial economic potential and possesses considerable natural resources, including oil, rich agricultural land, and a well-developed industrial infrastructure. Tatarstan is a net contributor to the Russian Federation's budget, and has among the highest per capita incomes in the country, after Moscow and St. Petersburg.

The USTDA grant awarded today will fund a study that will define the goals of the bank. Among the main tasks will be an analysis of the funds required and how to obtain them, a risk assessment, and an operational plan. The project is significant because there are currently few banks that offer loans to businesses in the region.

If established, the bank will make financial resources available to companies seeking to invest in Tatarstan. The Tatarstan Investment Bank, as it would be known, would provide both debt and equity financing to existing companies and creditworthy new companies, including medium-sized businesses. The bank is expected to assist in structuring investment projects through the attraction of credit resources within Tatarstan and from outside sources. The bank will be located in Kazan, the capital of Tatarstan, Russia.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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