Russian developer LSR Group said this week that it has signed a 'strategic partnership agreement' with North-West Bank, part of the Sberbank Group, which envisages the provision of new debt facilities to finance LSR Group's major development projects.

The agreement was signed by Alexander Govorunov, Chairman of North-West Bank, and Alexander Vakhmistrov, CEO and Chairman of LSR Group, at a ceremony in St. Petersburg.

'The agreement is aimed at expansion of long-term and mutually beneficial cooperation between LSR Group and Sberbank, including credit facilities for LSR Group's major projects as well as developing new mortgage programmes for residential housing under construction,' the companies said.

Sberbank said it will also consider providing financing for the construction of LSR Group's new brick factory.

LSG Group, which focuses on St. Petersburg, Moscow, Yekaterinburg and Ukraine, has RUB 6 bn (EUR 150 mln) of existing loan facilities from Sberbank. 'This cooperation not only defines our company as a reliable partner but also shows a great interest of large financial institutions in business development and implementation of significant investment projects in Russia,' said Vakhmistrov of LSR Group.