Investors flock to VTB forum on what Russian economy has to offer

The 14th VTB Investment Forum "Russia Calling!" was held on Dec 7 and 8 at the World Trade Center in Moscow with the theme Making Deglobalization: Uniting Sovereign Economies.

A large number of attendees proposed that after the sanctions imposed by Western countries, the Russian market underwent some structural changes. In the past, large foreign funds were the barometer, but now domestic investors are playing a major role.

On the first day, Russian President Vladimir Putin delivered a speech at the forum. He said that in the first 10 months of 2023, the Russian economy grew by 3.2 percent, surpassing the level before Western sanctions were imposed. Putin expects that by the end of this year, Russia's GDP will increase by at least 3.5 percent.

He stated Russia should establish a platform for scientific and educational cooperation and investment within the framework of the BRICS grouping. He emphasized the Russian economy should not dwell on these restrictions, but look forward, move forward and carry out extensive cooperation in fields such as education to cooperate with its economic partners.

Elvira Nabiullina, minister of economic development of the Russian Federation, said at the forum that in addition to the changing situation in the stock market, the role of investors is different from the past. She mentioned that securities issuers entering the market must realize that they are attracting future co-owners of the companies. This is a completely different mechanism.

"Due to the blockade of foreign securities, investor confidence has declined. This is a blow to the retail market and domestic investors," Nabiullina said. But in her opinion, there is enormous potential for the development of the Russian capital market. Nabiullina noted that it is crucial to maintain investor confidence at present.

Additionally, she mentioned an incentive mechanism that has been implemented since mid-2023, aimed at encouraging banks to support technological modernization and import substitution projects. "Now, the total amount of loans issued under this mechanism has reached 220 billion rubles ($2.43 billion). It is estimated that the number will soon reach 10 trillion rubles."

VTB Bank First Deputy President and Chairman Dmitry Pyanov also mentioned that significant changes are taking place in the stock market. "The VTB Bank has repeatedly emphasized that, in addition to debt, the healthy development of companies also requires equity. There has been a huge change in the structure of shareholders. Previously, it was large foreign funds that controlled the market, but now the rise of individual domestic investors is becoming prominent. It is an understatement to say that such a trend is fundamental, which is clearly seen in all our daily operations."

Andrei Kostin, president and chairman of VTB Bank Management Board, pointed out that around 300 foreign representatives from 20 countries participated throughout this term of VTB Investment Forums. "For many years, the main goal of the forum has remained unchanged. Firstly, it is to attract foreign investments into Russia and provide the international investment community with comprehensive information about business opportunities in Russia, as well as the efforts made by the government, central bank and regional authorities to improve the business and investment environment," Kostin said.

For the first time, exclusive closed meetings with the participation of more than 1,000 retail investors were held on the second day of the forum. The participants in these meetings were able to talk with top business managers and discuss the prospects of financial markets and the challenges the investment community is facing.

The VTB Investment Forum "Russia Calling!" has been held since 2009. Every year, the event attracts reputable participants, including government officials, heads of Russian and international companies, and investors. The forum agenda includes some of the most topical issues related to the global economy, finance and business industries. More information is released on its Shanghai office page https://vtbbank.cn/cn/.