Pilot Financial Initiative


Pilot Financial Initiative (PFI):

 The Pilot Financial Initiative (PFI) was an open platform for financial cooperation launched on the initiative of the Russian CBSS Presidency to attract partners and funds to finance  innovative small and medium businesses as well as PPP projects to upgrade social, municipal and regional infrastructure, energy efficiency, nature protection in the geographic area of CBSS. A Memorandum of Understanding (MoU) outlining the Initiative was signed between the Secretariat of the Council of the Baltic States, KfW Development Bank (KfW Entwicklungsbank) and the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) on the sidelines of the Baltic Sea States Summit in Stralsund, 31 May 2012.

imageIn 2012 KfW and Vnesheconombank signed two Credit Agreements on extending to Vnesheconombank of 110 million USD and after that 65 million USD for on-lending to projects in the field of environmental protection, innovations and modernization in the North-West of Russia (Saint Petersburg, the Leningrad region, Pskov region, Novgorod region, Kaliningrad region). The Credit Agreement on extending 65 million USD is aimed to support an essential modernization of the urban solid waste system in the City of St. Petersburg. Modern waste sorting and recycling facilities will be installed, thus increasing waste treatment efficiency and overall waste treatment quality in the city.

On November 22, 2012 the International Conference with the focus on new financing possibilities for small and medium enterprises and public -private partnerships took place in Kaliningrad.  Read more…

“We must create the right conditions for business figures to be more actively involved in investment projects with regional significance, and we need to focus on their environmental aspects. Incidentally, the issue of loans by two state development banks, namely, KfW of Germany and Russia’s Vnesheconombank, for small and medium-sized businesses in northwestern Russia is a good example of this. Other major banks, including the Nordic Investment Bank and the Nordic Environment Finance Corporation (NEFCO), which have substantial experience of regional operations, should also join these projects“, stated  Prime Minister Dmitry Medvedev at the High Level Conference on the Protection of the Environment of the Baltic Sea Region in Saint Petersburg, 5-6 April, 2013. The meetings with Nordic Investment Bank (NIB) and Nordic Environment Finance Corporation (NEFCO) were conducted in February 2013 as a step towards broadening the PFI geographic area of action and involving new international financial institutions.

The latest Annual PFI Steering Group Meeting  took place on 23 October 2017 at the KFW Representative Office in Moscow, with the discussion focusing on:

  • Possibilities to restart the activity within PFI
  • Expansion of the consortium by including new members
  • Information on the PFI program implementation in terms of financing of waste management project in Saint-Petersburg, project Kolpino
  • Question of participation of Belarus Development Bank at the PFI
  • Activities of NEFCO in Russia


– Memorandum of Understanding

– Vnesheconombank and KfW Bankengruppe entered into a Credit Agreement under the Program of the Council of the Baltic Sea States (CBSS)  Press release 13 December 2012

– International Conference in Kaliningrad offers new financing possibilities for Small and Medium Enterprises and Public Private Partnerships Press release 26 November 2012

– The Russian Vnesheconombank and the German KfW Bankengruppe will sign the first finance facility agreement for support of SMEs dealing with innovative projects in the Baltic Sea area Press release 8 November 2012

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