Russian Federation-Based Novikombank, Sanctioned By OFAC, Opens Office In Cuba.

New Conduit For Commercial Transactions Into And Out Of Cuba.

Helping Develop Further Investment And Financing For SME’s In Cuba And Connect Them With Entrepreneurs In Russian Federation?

On November 23, 2007, Vladimir Putin, President of the Russian Federation (2000-2008 and 2012- ), signed Federal Law № 270-FZ to create the State Corporation for the Promotion of the Development, Manufacture, and Export of High-Tech Products (Rostec). Moscow, Russian Federation-based Rostec is the majority shareholder in Moscow, Russian Federation-based Novikombank (Novikom).

Wikipedia: “Rostec comprises about 800 enterprises, which together form 15 holding companies: eleven in the defense-industry complex and three in civil sectors. Rostec's organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide… 2014 EU sanctions listing for Chemezov describes how Rostec subsidiaries supported Russia's annexation of Crimea.”

“On 24 February 2022 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Novikombank under E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy. Subsidiary companies were also sanctioned.”
“On 28 June 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 70 entities, many of which are critical to the Russian Federation’s defense industrial base, including State Corporation Rostec, the cornerstone of Russia’s defense, industrial, technology, and manufacturing sectors, as well as 29 Russian individuals.”
From OFAC: “State Corporation Rostec (Rostec) is a massive Russian state-owned enterprise formed to consolidate Russia’s technological, aerospace, and military-industrial expertise. Rostec is a holding company whose subsidiaries are engaged in a wide range of industries, including automotive, defense, aviation, and metals. In addition to leading Russia’s domestic defense production, Rostec also facilitates foreign trade in defense and related materiel as well as civilian and dual-purpose products. Rostec’s management umbrella includes more than 800 entities across a wide range of sectors… Rostec was designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy. As a result, all entities owned 50 percent or more, directly or indirectly, by Rostec are blocked, even if not identified by OFAC. Today’s action built upon previous designations of certain Rostec’s holdings pursuant to E.O. 14024 in recent months and Rostec’s previous addition to OFAC’s Sectoral Sanctions Identifications List (“SSI List”) pursuant to Directive 3 of E.O. 13662 following Russia’s 2014 invasion of Ukraine. Rostec is also sanctioned by Australia, Canada, the European Union (EU), New Zealand, Switzerland, and the United Kingdom (UK).”

From Novikom Internet Site:

”Novikom today: Since its foundation in 1993, Novikom has been financing strategic high-tech industries of the real sector of the Russian economy, facilitating implementation of ambitious national-wide projects, investing in the future of the country.

Our benefits: Bank of the Russian industry and high technologies. Novikom offers efficient financial instruments for leading national enterprises and is a reliable partner in addressing challenges facing the Russian industry.

2023 Assets: 530.5 billion Rubles (among twenty largest banks in the Russian Federation)
2023: 362 billion Rubles- credits issued to machine-building and hi-tech companies account for 85.6% of the loan portfolio of the bank.

Small And Medium-Size Enterprises (SME): Novikom maintains its comprehensive program of cooperation with small and medium enterprises. The small and medium business program of Novikom targets companies and individual entrepreneurs with an annual revenue of up to 2.0 billion roubles. The main benefit of the Novikom Program in terms of crediting are simple and clear credit and guaranty products meeting all requirements of business, individual work of personal managers with each client, short Time To Yes. We are ready to offer your company the whole range of banking services and we will be glad to see you among our clients. We strive to consider the needs of our clients in the most flexible way: in addition to standard banking and investment products and services we offer non-standard solutions, often acting as innovators in the Russian market.

The Bank’s full trade name: Joint-Stock Commercial Bank «NOVIKOMBANK»
Contracted name: JSCB “NOVIKOMBANK”
Date of state registration: October 25, 1993
Authorised capital: 11,750,822,000 roubles
Legal address: Russia, 119180, Moscow, 50/1, bld.1, Polyanka Bolshaya str.
Actual address: Russia, 119180, Moscow, 50/1, bld.1, Polyanka Bolshaya str.
Telephone: +7 (800) 250-70-07, +7 (495) 974-71-87
Telex: 611691 NVKOM
SWIFT: CNOVRUMMXXX
Reuters Dealing: NOVM
Код Reuters Dealing: NOVM
E-mail: office@novikom.ru
Web-site: https://novikom.ru/

Requisites
Correspondent account: 30101810245250000162 with GU of the Bank of Russia in CFO
BIK: 044525162
INN: 7706196340
KPP: 770601001
OGRN: 1027739075891

Statistic codes
OKPO: 17541272
OKOGU: 1500010
OKATO: 45286596000
OKTMO: 45384000
OKFS: 16
OKOPF: 67
OKVED: 64.19
Date of registration: August 15, 2002

Corporates

Novikom’s customer policy is focused on rendering technology-intensive banking services in all segments of the financial market. Since its foundation in 1993, Novikom has been financing strategic high-tech industries of the real sector of the Russian economy, facilitating implementation of ambitious national-wide projects, investing in the future of the country. State Corporation Rostec is a key partner of Novikom. The Bank provides services to more than 700 enterprises and holdings of the State Corporation, and manages its investment flows. Integration with Rostec contributes to the growth of Novikom capitalization and its further successful development as one of the leading financial institutions of the country.

Financial institutes

Services for financial institutions:

Settlements in rubles. An extended operating day is set until 19.00 Moscow time. Interbank and client payments are transferred without commissions. Interest accrued on LORO-balances; Establishment of correspondent relations. JSCB “NOVIKOMBANK” will be pleased to see your reputable bank among our correspondents. JSCB “NOVIKOMBANK” is ready to offer cooperation with your bank on beneficial terms; Financing of export-import contracts of partner banks’ customers on comfortable terms. It is practicable to provide own liquidity on a bilateral basis for these purposes. It is possible to attract blank credit lines from the world's largest financial institutions, if necessary. JSCB “NOVIKOMBANK” has vast experience in arranging financing of short-term export and import operations (letters of credit, guarantees, pre-financing) and it offers services in the structuring of trade finance transactions in close cooperation with the largest foreign financial institutions; A variety of Treasury operations allow to close FX-position for almost any pair of currencies or to hedge it with the help of swap deals by market quotes. We offer our own FX-platform. Having vast experience in the field and an impeccable business reputation, JSCB “NOVIKOMBANK” offers mutually advantageous cooperation on interbank, currency and equity markets. JSCB “NOVIKOMBANK” offers the opportunity to jointly build mobile, high-quality and optimal solutions for customers.

Transactions with securities

Novikom, being a professional participant of the securities market, performs the following operations: Broker activity (licence No. 177-06-439-100000); Dealer activity (licence No. 077-06-443-010000); Securities management (licence No. 177-10-203-001000); Custody operations (licence No. 177-06-450-000100). Novikom is one of the leading operators of the secondary bond market in terms of trade volumes in the MICEX, MICEX stock exchange, over-the-counter transactions, and MICEX REPO transactions. Novikom makes transactions with securities in the MICEX and RTS stock exchange and offers the following services: Brokerage operations; Storage and/or title record to securities; Trust management; Other transactions with securities.

Shares: Purchase/sale of Russian shares on customer request; Market-maker functions; Liquidity supply; Redemption of securities of various companies.

Bonds: Purchase/sale of bonds on customer request; Market-maker functions; Liquidity supply; Redemption of securities of various companies.

Conversion transactions: The bank has many years’ experience of working in the financial markets. For corporate and institutional customers the Bank provides a wide range of conversion services – spot, forward and foreign exchange options. Novikom endeavours to help its customers to find optimal and qualitative decisions for foreign exchange and interest rate risk hedging. USD/EURO conversion operations; Minimisation of expenses from conversion operations.

Broker service: Based on the licences of a professional participant of the securities market Novikom renders broker and depositary service to individuals: In the state securities market; In the Moscow Interbank Currency Exchange market of corporate securities (shares and bonds); In the over-the-counter market of corporate securities (shares and bonds). Customers are served based on broker service agreements. The Bank specialists provide the customers with all necessary information about market conditions and give consultation on the issues related to securities market transactions.

“Being in a state of constant growth, the Corporation creates conditions for further development of its employees, enterprises, and entire domestic industries, contributing to positive changes in the country as a whole." Sergey Chemezov, General Director

In accordance with the latest strategy, Rostec's mission is to improve people's lives by creating high tech, "smart" products

In its business operations, Rostec brings together the best traditions of the Russian engineering thought, the latest technological developments, and in-depth expertise. The Corporation successfully links science and manufacturing, develops advanced, forward-looking technologies, implements state-of-the-art know-how, and promotes productive cooperation between Russian enterprises. Rostec staff's wealth of experience and depth of expertise are instrumental in creating unique products and opening up new export opportunities. This is precisely why the State Corporation's overarching goal is to establish Russia's leading positions in the fields of high tech and engineering on the global scene.

Core Areas of Business: Having brought together under its umbrella many unique production facilities and technologies as well as a significant share of the country's scientific potential, Rostec became a reliable partner to the state in facilitating the innovative development of Russia's industries. The Corporation operates in the following areas: Automotive engineering and manufacturing; Aircraft engineering; Engine manufacturing; Metallurgy; Construction; Optics; Composite and other advanced structural materials; Medical equipment; Pharmaceuticals; Industrial biotechnologies; Radioelectronics; Instrument engineering and manufacturing; Information technology and telecommunications; Machine tool building and equipment manufacturing for industry upgrade; Arms and military equipment manufacturing.

Corporation's Mission: Facilitating the development, manufacture, and export of high tech products. Supporting Russian high tech industrial products designers and manufacturers on domestic and foreign markets. Retooling the production. Developing the country's scientific and human resources potential. Promoting the cooperation with major international and Russian manufacturers.

Corporation's Core Functions: Promoting and selling high- tech industrial products on domestic and foreign markets. Participating in the implementation of the state policy in the field of military and technical cooperation between the Russian Federation and foreign states as well as the State Armament Plan. Attracting investments to create competitive high tech industrial products. Advertising, exhibition, and marketing activities; showcasing civil, military, and dual-purpose products both in Russia and abroad. Supporting applied research in promising areas of scientific and technological development. Implementing advanced production technologies in order to improve domestic engineering designs and reduce the time and cost of product development and manufacture. Facilitating foreign trade in military commodities

The Corporation was established and is operating in accordance with Federal Law of November 23, 2007 No. 270-FZ "On the State Corporation for the Promotion of the Development, Manufacture, and Export of High Tech Products "Rostec." The Corporation is a legal entity established by the Russian Federation in the legal form of a state corporation. The Corporation's full name in the Russian language is Государственная корпорация по содействию разработке, производству и экспорту высокотехнологичной промышленной продукции «Ростех». The Corporation's abbreviated name in the Russian language is Государственная корпорация «Ростех». The Corporation's full name in the English language is State Corporation for the Promotion of the Development, Manufacture, and Export of High Tech Products "Rostec." The Corporation's abbreviated name in the English language is State Corporation "Rostec." State registration information : State Registration Certificate series 77, number 011483840, issued by the Federal Tax Service Directorate for the city of Moscow on December 3, 2007. Primary state registration number (OGRN): 1077799030847, assignment date December 3, 2007. INN/KPP: 7704274402/770401001.”

Russian State-Owned Novikombank Opens Havana Office

HAVANA, June 20 (Reuters) - Russia's Novikombank said on Thursday it had become the first bank from the country to open a representative office in Cuba as part of growing economic ties between the former Cold War allies. The Russian state-owned bank said in a statement that Cuba's central bank had granted it a license on June 7. There was no immediate comment from Cuban authorities or the central bank. "The opening of a Novikom representative office in the Republic of Cuba is not only a new stage for the bank, but also an important step in Russian-Cuban relations," board chairwoman Elena Georgieva was quoted as saying in the announcement. Since the Russian invasion of Ukraine, Moscow's already warm relations with the Communist-run Caribbean nation have strengthened into a "strategic partnership," with a number of possible investment projects in sugar, transportation and energy under discussion. Last week, a Russian navy frigate and a nuclear-powered submarine docked in Havana, a move widely seen as a show of force from Moscow amid tensions with the West over the Ukraine conflict. Cuban President Miguel Diaz-Canel has visited Moscow four times in the last few years. Novikombank said it planned to support Russian clients' trade and investment activity in Cuba. "The governments of both countries are increasing the volume of cooperation in every way," the statement said. Since 2022 Russian tourists have visited the island in greater numbers and oil and wheat shipments have provided some relief amid a grueling crisis characterized by shortages of basic goods, inflation and power outages that has sparked record migration. Cuba is one of just a handful of countries that accepts the Russian MIR credit card. Cuba first opened to foreign banks in the 1990s after the fall of the Soviet Union. Most European and Canadian banks have left in recent years due to the crisis and fear of U.S. sanctions. But that is unlikely to deter Novikombank, which is already under sanctions by the United States and other countries over the Ukraine war.

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