The list of insurers on EXIAR (Export Insurance Agency of Russia) contracts has been specified in the framework of the roadmap for supporting exports and access to foreign markets. This innovation provides a regulatory basis for insuring export projects implemented with the participant transnational and regional financiers.
Submitted by the Ministry of Economic Development.
Reference
The resolution was drafted to implement a plan (“roadmap”) to support exports and access to foreign markets, endorsed by Government Decree No. 259r of 25 February 2014 (hereinafter referred to as the “Roadmap”).
Item 11 of the Roadmap envisages amending Government Resolution No. 964 of 22 November 2011 on the procedure of export credit and investment insurance against entrepreneurial and political hazards with the aim of establishing instruments for the Export Insurance Agency of Russia (hereafter referred to as “EXIAR”) to provide 100 percent insurance protection of particular export projects.
Such protection is necessary for export projects implemented in close competition with foreign suppliers. To be competitive, Russian manufacturers need state financial support in the form of insurance protection on terms similar to those provided to their competitors by foreign export crediting agencies.
EXIAR 100 percent protection conforms with WTO and OECD standards, particularly the OECD Arrangement on Guidelines for Officially Supported Export Credits – the basic document in the state funding and insurance of foreign trade.
The signed Resolution specifies the list of insurers on EXIAR contracts to provide a regulatory basis for insuring export projects implemented with participant transnational and regional financiers – primarily development banks, and projects funded recurring to non-credit tools, including leasing, factoring and forfeiting.
These amendments extend the opportunities of export and foreign investment support depending on Russian exporters’ demands.