The World Bank’s projects in Russia range in sectors and geography from strengthening of the banking and the financial systems to swine breeding, from the support of local socio-economic initiatives in Dagestan to improving preschool education in Yakutia.

The World Bank’s Board of Executives Directors adopted a new country strategy for Russia, for the implementation of which it can provide up to $5 billion within the next five years.

World Bank (WB) Russia executive director Vadim Grishin said that the main spheres of cooperation within the framework of the strategy include promoting the growth and diversification of the Russian economy, the development of social protection of the population, support for global and regional initiatives of Moscow, including within the framework of its chairmanship in the leading international organizations, including APEC and the G20 of world powers. Particular attention will be paid to the regional aspects of cooperation.

Specifically, according to Mr. Grishin, in fiscal year 2012, WB’s new projects are expected in the sphere of the protection of the Russian forest fund from fires, expansion of micro-financing, raising energy efficiency, and developing infrastructure, including sports. A special program is being prepared for the support of local initiatives in the North Caucasus and the Southern Federal Districts of Russia.

One feature of Russia’s cooperation with the World Bank is that in recent years Russia has acted not only and not so much as a borrower, but as a partner of World Bank, Grishin said. This is manifested also in the country’s role of a donor in a number of major international initiatives, including in the sphere of health, food security, and education development.

The discussion of a new program for Russia by the World Bank’s Board of Executive Directors was held “in a very benevolent and positive way,” said WB executive director. The strategy “has received unanimous support in content and in terms of funding and the timing,” he said. In his view, the flexibility and the innovative nature of the strategy, its conformity with the priorities of the Russian authorities, as well as its attention to Russia’s scale and the presence of an important regional dimension, have contributed to the strategy’s approval.

The document also gives an important role to the specialized agencies of the World Bank Group. The International Finance Corporation (IFC), working with private businesses, and the Multilateral Investment Guarantee Agency (MIGA), will continue efforts to attract foreign capital into the Russian economy.

Another important advantage of the World Bank’s projects is their well-known anticorruption component. Answering questions on this topic, Grishin said that Russia has long been interacting with the Bank in this regard. He added that WB’s own studies have shown that the state of affairs with corruption in Russia and throughout the region, according to WB classification, are not the worst in the world.

Finally, the expert drew attention to the fact that, if necessary, the “new strategy can become an additional factor in the anti-crisis economic resilience” of Russia. “Given the developments on the world markets and in the global economy, it may prove important,” he explained.

Meanwhile, WB said in a press release that the World Bank Group’s Board of Executive Directors on December 20 discussed a new Country Partnership Strategy (Strategy) for the Russian Federation for the period 2012-2016.

The Strategy serves as the business plan of the World Bank Group in support of Russia’s own development agenda. Following the previous Strategy, it also continues the shift to innovative modalities of engagement at the global, regional (i.e., less developed countries in ECA), and national (federal and sub-national) levels. It aligns the World Bank Group’s program with the emerging Russia’s “Strategy 2020” update and other strategic documents, which have already made progress towards a consensus view in the country. It has been designed to be a demand-driven and flexible document to enable the World Bank Group to provide a timely and sustainable response to changes in Russia’s economic priorities.

A Country Partnership Strategy Progress Report in 2014 will take stock of implementation and will allow the World Bank Group, in consultation with the authorities and other partners, to make mid-term adjustments in the strategy to ensure continued alignment with government priorities.

The Strategy was prepared in close dialog with the government of Russia and in consultation with the representatives of federal and local governments, the civil society, and business communities, think-tanks, academia, and other stakeholders. The main purpose of the consultations was to discuss progress achieved during the last Country Partnership Strategy period, to identify existing successful approaches to socio-economic development in Russia’s regions, and to learn in which areas or sectors the authorities would desire the most support.

“The Russian authorities are looking forward to developing further cooperation with the World Bank Group, where it can bring in the cutting edge institutional knowledge and best international practices,” said Vadim Grishin. “The authorities are open to innovative solutions, and praise the Bank Group’s readiness to align its involvement and activities to Russia’s long-term strategies in areas like social protection, financial intermediation, energy efficiency, infrastructure, governance, and regional development.”

The World Bank has built up and will continue to develop further a larger-than-usual portfolio of technical assistance and analytical activities, especially reimbursable technical assistance, that help strengthen capacity and transfer knowledge to Russian institutions. While reimbursable technical assistance has the advantage of being fully driven by the client’s demand, traditional analytical and advisory activities are better able to develop important or emerging topics that the Bank may wish to bring to the attention of the Russian authorities and the public.

“Russia represents an important part of IFC’s global business. It has provided a platform for development of innovative programs in the past, including housing and energy efficiency finance,” said Tomasz Telma, IFC’s Director for Europe and Central Asia. “The IFC plans to maintain a strong program in Russia with an emphasis on selectivity and focus on areas where it can have a considerable impact on strengthening and diversifying the private sector, contributing to the country’s sustainable and long-term growth.”

Russia is an extremely important partner for the Multilateral Investment Guarantee Agency, and is a country where MIGA has a long history of providing guarantees for private sector projects. Looking ahead, MIGA remains committed to encouraging developmentally sound foreign investments in Russia. It will also keep providing investment guarantees to Russian companies going to invest overseas.