Russian President Vladimir Putin appointed Wednesday Vladimir Dmitriyev chairman of the newly established state corporation, Vnesheconombank, the Kremlin press service said.

Putin decreed May 17 that state-controlled foreign economic bank Vnesheconombank (VEB) be enlarged into a state corporation, the Federal Bank for Development and Foreign Trade, by incorporating Roseximbank and the Russian Development Bank, the RIA Novosti news agency reported.

Designed to promote the competitiveness of the Russian economy, its diversification and investment incentives, the new bank could increase its capital to at least 70 billion rubles (2.7 billion U.S. dollars) if need be on government instructions.

The new Vnesheconombank will mostly provide retail banking services, issue bonds and securities and give insurance guarantees against political and commercial risks facing export loans.