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Tuesday, March 19, 2019

VTB provides guarantees to United Shipbuilding Corporation's Finnish joint venture

VTB Bank recently signed an agreement with Arctech Helsinki Shipyard, United Shipbuilding Corporation's joint venture in Finland.

VTB will provide bank guarantees to finance Arctech's participation in a state tender for an ice-breaking vessel. Arctech was announced as the winner of the tender, held by the Finnish Transport Agency, on Jan. 22.

Bank guarantees for approximately $166 million will be issued simultaneously with the signing of the contract for the icebreaker, which will be built jointly by Vyborg Shipyard and Arctech Helsinki Shipyard.

"VTB Bank and USC have developed a consistent long-term partnership, while cooperation between Vyborg Shipyard and Arctech Helsinki Shipyard is a positive example of fruitful Russian-Finnish cooperation in the construction of ice-class vessels," Valery Lukyanenko of VTB Bank's management board said.

United Shipbuilding Corporation is Russia's largest shipbuilding company. The federally owned corporation, established in 2007, includes approximately 60 shipyards, design bureaus and ship repair plants, which build 80 percent of the country's ships and vessels

Arctech Helsinki Shipyard is a Finnish company established in 2010. It is a parity venture between Russia's United Shipbuilding Corporation and STX Finland.