The Russian Agency for Export Credit and Investment Insurance (EXIAR) and SVEZA-Les LLC executed a short-term accounts receivable insurance policy as part of the supply of plywood to 52 countries of the world.
The insurance policy assumes the protection of the interests of SVEZA-Les LLC from possible financial losses in the event of a foreign buyer's default.
“We are glad to cooperate with the world leader in birch plywood production. The Sveza Group exports over 70% of its products, including unique ones used in the construction of skyscrapers and Olympic facilities, high-speed trains and LNG tankers. By effectively using support instruments, the company increases export supplies and reaches new foreign markets. It’s worth noting that two plants of the Sveza Group were among the best in the All-Russian Exporter of the Year Award 2020. Enterprises in Kostroma and Uralsky were awarded in the category “Major Business,” Nikita Gusakov, General Director of EXIAR JSC, Senior Vice President of REC.
“For the majority of our regular customers, EXIAR’s instruments are one of the most effective ways to secure foreign economic activity without reducing the volume of supplies. Due to the pandemic and the global economic crisis, they have become even more relevant. Cooperation with EXIAR JSC provides us with a possibility to gain a foothold in habitual markets, start operating with suppliers from new countries more safely, and, in general, more effectively manage the entire system of credit risks, including accounts receivable insurance instrument,” Aleksandr Danilov, Director for Economics and Finance at Sveza.
For a long time, the Sveza Group has been successfully using EXIAR’s financial instruments to insure its foreign economic operations. The companies began to cooperate in late 2018, and since then regularly renew the contract.
Accounts receivable insurance provides a supplier with flexible payment terms in overseas markets. This instrument allows preserving comfortable conditions for buyers during a period of instability in the world markets and concluding a contract for deliveries on a deferred payment basis faster, even without experience.
Besides, EXIAR JSC conducts due diligence on new and existing customers in the changing market conditions. With the dynamically developing export supplies of Sveza, this is a great advantage of cooperation.
In addition, amid the first wave of the coronavirus pandemic last year, EXIAR has supported its exporting clients. It did not cancel insurance limits for buyers and automatically extended the deferred payment period. All this made it possible to secure product flow in the critical conditions of lockdowns introduced in many countries.
Sveza is a Russian company that produces high-quality customized products from renewable forest resources. Sveza is the world leader in the birch plywood market. Its products won the trust of consumers in more than 90 countries of the world on five continents. The company's plywood is used in the construction of skyscrapers, Olympic facilities, mainline trailers, high-speed trains, LNG tankers, sustainable furniture and stylish interiors. https://www.sveza.ru/
EXIAR JSC is part of the REC Group, which, in turn, is part of VEB.RF. The REC Group and VEB.RF are actively involved in achieving the goals of the "International Cooperation and Export" national project, according to which the volume of NRE export must grow by 70% in monetary terms by 2030.