The Framework Agreement and the Supplementary Letter thereto lay down the main legal terms on which the European Investment Bank (EIB) will operate in the Russian Federation.
The EIB is an international financial institution created in 1958 under the 1957 Treaty of Rome that created the European Economic Community. The authorised capital of the EIB is made up of contributions of its member states.
The EIB’s core activity is to finance projects connected with support of the backward regions of Europe.
In rendering financial support for various projects the EIB can use its own funds as well as attract additional resources acting as a mediator in the international capital markets.
The Framework Agreement would enable Russia to enlist the services of the EIB in obtaining long-term and comparatively cheap loans required to implement infrastructure projects.
Some provisions of the Framework Agreement differ from the Russian rules (granting of tax benefits for the assets, property and incomes of the EIB, a special currency conversion procedure, the granting of legal and administrative immunity to EIB assets and its officials, etc). In this connection the Framework Agreement is subject to ratification in accordance with Law 101-FZ “On the International Treaties of the Russian Federation” of July 15, 1995.