EXIAR and Eximbank of Russia embark on first joint export support project
The Russian Agency for Export Credit and Investment Insurance (EXIAR) and Eximbank of Russia have signed an export working capital credit insurance contract. It is the first deal of its kind between the two organisations.
As part of the contract, EXIAR insured Eximbank of Russia's export financing of the St Petersburg-based Baltic Russian Power Company (BaltRusEnergo). Financing has been provided to BaltRusEnergo to fulfil an export contract worth USD 4.6 million with the commercial company Taze Enjam (Turkmenistan), involving the delivery of modular boilers to Turkmenistan in order to reconstruct steam boilers in the country.
Export working capital credit insurance is a product designed to protect a Russian bank from the risk of a default on a loan provided to a Russian exporter to fulfil an export contract.
Following a presidential order, work is currently under way to establish a credit and insurance export support centre at EXIAR. This will involve the full incorporation of available credit and insurance export support tools, as well as fully transferring ownership of Eximbank of Russia to the Agency. The credit and insurance export support centre will offer comprehensive credit and insurance solutions, as well as credit and/or insurance products separately, depending on the particular aspects of an export project. The aim of the new centre is to foster an environment conducive to ensuring sustained growth of non-commodity exports from the Russian Federation.
The Russian Agency for Export Credit and Investment Insurance was established in 2011 as an open joint-stock company. The agency's charter capital is RUB 30 billion. Since its inception, EXIAR has insured over RUB 198 billion worth of exports.
Eximbank of Russia is an agent bank of the Russian government which provides financial (guarantee) support for exports of industrial products manufactured in the country. It offers comprehensive financial support for Russian export projects and provides a full range of services for companies engaging in international trade. Since 2007, Eximbank of Russia has been a fully owned subsidiary of Vnesheconombank.