Sberbank continues to broaden its collaboration with the largest Russian companies by focusing on the development of scientific-intensive areas of Russian industry and the domestic economy as a whole. An integral part of this strategy is the recent Partnership Agreement signed between the Bank and OJSC Svayzinvest. 

OJSC Svyazinvest is a national holding company whose primary task is to develop regional public telecom and IT networks throughout Russia.  The company holds large interests in telecom operators which provide basic services across the Russian Federation.  At present the company is the process of undergoing a merger aimed at setting up mega-regional telecom companies.  The main purpose of the merger is to sharpen competition and raise corporate governance standards in the industry.  

The ongoing merger and the intensification of competition focus on monitoring cash flows, operative management of payables and receivables, sources of investment resources and dictates the need to use a wide range of advanced banking services.  

The agreement, which was signed for a 5-year term between the Bank and the Company, specifies the ways and means for the partnership to be implemented on all levels, ranging from the central administration to telecom exchanges and branches, and a uniform approach for all Sberbank divisions in Russia in servicing the Holding's operators.  

Sberbank's role as the main strategic partner in the financial sphere is bound to get a boost as a result of this agreement.  Given the scale and diversity of areas addressed under the agreement, the Bank is in a position to offer Svyazinvest the full range of banking services: comprehensive cash settlement facilities, all forms of credits and loans, foreign economic activity, issuance and use of plastic cards and other important banking service solutions.  

One of the main steps taken towards implementing the agreement was the Bank's decision to take part in financing the Holding's centralized investment program.  The combined efforts of OJSC Svyazinvest, Sberbank of Russia and OJSC RTK Leasing have made it possible to lower the purchase price of telecom equipment by 15 - 20%, while paving the way to long-term finance options available in domestic currency. This in turn will allow the subsidiaries of Svyazinvest to raise their efficiency while lowering their credit risks.  The total amount of long-term loans extended by the Bank to Svyazinvest in 2002 is in the neighborhood of Rub 4 bn.  The centralized investment program should make it possible to enter 1.6 mn new lines into service across Russia.   

This partnership agreement once again aptly illustrates the crucial role of Sberbank in supporting key segments of the Russian economy.  The Bank is ready and willing to forge long-term alliances with promising and reliable business partners.