EXIAR increases support for exports and investments – Government decree approves amendments to rules governing export insurance
Amendments to the 'Rules for Activities Related to Insuring Export Credits and Investments Against Commercial and Political Risks', governing EXIAR's operations, have been approved by the Russian Government in Decree No. 1204 dated 14 November 2014.
These changes enable EXIAR to cover up to 100% of an organisation's risk value in particular instances. These new rules will apply to certain strategically important export projects covered by EXIAR in a bid to increase the competitiveness of Russian exporters. EXIAR's Board of Directors will exercise control over applying this increased level of insurance support. The Board will also adopt a new internal document specifying the procedure and regulations governing the selection of export projects qualifying for 100% insurance coverage.
Raising the level of insurance support offered by the Agency to 100% is essential in order to assist exporters operating in a highly competitive global environment. In addition, the legal capacity for the Agency to provide 100% insurance coverage is vital for multilateral international projects. In such instances, foreign ECAs cover 100% of the insurance value with regards to overseas partners, while EXIAR is required to provide a symmetrical level of coverage proportional to Russia's involvement in the deal.
The ability of the Agency to cover up to 100% of a project's risk value does not contravene WTO or OECD regulations, including the OECD Arrangement on Officially Supported Export Credits – the organisation's key document on international trade finance and insurance.
The Government decree also introduces a number of amendments based on EXIAR's experience over the first few years of operation. This is in an attempt to bring the legal and regulatory framework in line with the Agency's practical operations, and also stems from the necessity for EXIAR to modify its range of services in order to meet the needs of Russian export projects.
The revised rules will therefore enable EXIAR to not only offer insurance support to exporters, Russian investors and banks, but also to factoring and leasing companies, international development banks and other financial organisations. These amendments will provide the Agency with increased opportunities to render support to exports and investments abroad, thereby meeting the needs of Russian exporters and the requirements to develop the Russian financial services market.
They also further clarify the Agency's reporting procedures, in keeping with current federal regulations.
The first edition of these rules were originally adopted by Government Decree No. 964 in 2011 – the year the Agency was established. The rules form a fundamental document which regulates EXIAR's activities as they pertain to export credit and investment insurance against commercial and political risks.
Russian Government Decree No. 1204 dated 14 November 2014. (Russian only)
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011 as an open joint-stock company. EXIAR’s mission is to support Russian high-tech exports by insuring export credits against commercial and political risks, as well as Russian investments abroad against political risks. To date, the agency has insured shipments of Russian non-commodity goods around the world worth a total of more than RUB 200 billion.Vnesheconombank is the sole shareholder of EXIAR. The agency's charter capital is RUB 30 billion.
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