VSC was privatized in 1994. At present, VSC is majority owned (57%) by a Russian individual, owner of the Corus Group Holdings Ltd. (BVI) and two other Russians, owners of Anhee Resources Inc. (BVI). Corus Group is a diversified company with its main activities including oil trading and transportation, ownership of a network of gas stations, leasing of rail tank cars and shipping. Anhee Resources is primarily involved in maritime shipping and ship management in Russia and abroad. The remaining shares are held with the Government of Russia (25.5%) and small individual shareholders, including present and former employees of the company.

The IFC supported project includes the construction of up to 8 new 5,190 dead weight ton (“dwt”) dry-cargo river and sea vessels for about $65 million. The proposed IFC investment involves an A Loan for IFC’s own account of up to $27 million and a syndicated B Loan of up to $20 million.

27.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	27.0
Equity

* These investment figures are indicative

VSC is headquartered in Nizhny Novgorod, a city of 1.5 million people and a large industrial center located on the crossroads of major north-south and east-west multi-modal transportation routes. The Volga Basin (Volga River plus tributaries) occupies an area of 1,380 square km with a total population of over 40 million people. At present, VSC is an integrated river and short-sea shipping company with a total fleet (operational plus laid-up) of over 300 vessels active in international and domestic trade and passenger transportation.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this projected consisted of appraising technical and environmental information submitted by the project sponsor, and site visits by IFC staff. The following potential environment, health and safety impacts of the project were analyzed:

- Environmental, health and safety management systems;
- Vessel safety and pollution control;
- Oil/hazardous cargo spill prevention and control;
- Shipbuilding/repair yard pollution control and hazardous materials and waste management;
- Environmental contamination; and
- Employee health and safety.
Location of environmental documents in locally affected community
Volga Shipping Company 15A, Markina sq., Nizhny Novgorod, 603001, Russia

The project will play a significant role in attracting investment to a privately owned shipping company and it will contribute to the development of Russia’s strategic North-South (Northern Europe to South Asia) transportation corridor. IFC’s assistance is important to support VSC’s effort to modernize its fleet. IFC will provide affordable long-term financing which is currently difficult to obtain in Russia. In addition, IFC will function as a catalyst by arranging additional financing through its B Loan program.