EKSAR looking to support Russian exporters, mainly in Asia
MOSCOW. Feb 7 (Interfax) - The territorial priorities in OJSC Russian Agency for Insuring Export Credits and Investments (EKSAR) strategy lie in Asia, including China and India, the agency's general director, Pyotr Fradkov, said during a roundtable meeting devoted to discussion of the role of export insurance agencies in stimulating the mutual trade of Commonwealth of Independent States countries.
Fradkov said that according to the adopted strategy, regions have been prioritized where plans call for supporting Russian exporters. A limit has been assigned to each territory, in the context of which the agency will be insuring the interests of exporters abroad.
The total amount that might be expended by EKSAR is 300 billion rubles at the present time.
Agency support for Russian exporters in Asian countries could be effected at within 106 billion rubles, in Commonwealth of Independent States countries within 64 billion rubles, and 54 billion rubles is reserved for insuring exporter interests in Latin America.
Fradkov said the amount of insurance support is distributed by sector. Transport machine-building gets 105 billion rubles, the Russian chemicals sector 29 billion, energy 34 billion rubles, and aviation 31 billion rubles.
The agency insures exporters against risks associated with commercial credits and where political risk is involved, he said.
"The law allows EKSAR to cover up to 95% of losses associated with political risks arising and up to 90% of commercial risks," Fradkov said.
Political risk could involve unfavorable abrupt changes to law and regulations and bans on converting exporter sales revenues made in other countries.
Risks involving commercial credits, as a rule, in classic export insurance are associated with delays in making contracted payments of over 180 days, or counteragent bankruptcy.
An export insurance agency was set up in Russia later than in other countries, including CIS states, back in 2011 and is pretty much just getting to speed.
The organization is not an insurance market outfit regulated by the Federal Financial Markets Service (FFMS). EKSAR has its own legal base that is based on a number of governmental resolutions and makes use of domestic normative acts.