Vnesheconombank participates in investment activity, extends export credit facilities and provides guarantee support for Russian exporters upon exporting Russian industrial products (products, works and services) in accordance with the Memorandum on Vnesheconombank’s Financial Policies.
EXPORT SUPPORT IN VNESHECONOMBANK GROUP
As a parent organization, Vnesheconombank is responsible for coordinating its subsidiaries’ activities on supporting exports in order to achieve maximum synergetic effect. To achieve such effect the Bank has to use various instruments for providing financial and non-financial support for both typical and the most complicated export projects in any non-raw materials economic sector.
- In 2011, the Bank established OJSC the Export Insurance Agency of Russia (EXIAR), (OJSC EXIAR) which provides insurance support for Russian exporters. The Russian largest leasing company OJSC VEB-Leasing and CJSC ROSEXIMBANK - agent bank for extending state guarantees – operate within VEB Group.
- In 2013, an Export Financing Department was created within Vnesheconombank.
- In 2014, the Committee for Exports and Foreign Economic Strategy under Vnesheconombank’s Supervisory Board started to operate. The Committee is responsible for giving assistance and recommendations to Vnesheconombank’s Supervisory Board for it to coordinate measures for providing comprehensive support for exports at Vnesheconombank and its subsidiaries as well as in foreign economic activity (hereinafter – FEA) to improve the regulatory framework for regulating funding of Russian exports and FEA and promoting interests of Vnesheconombank and Russian companies in FEA.
While undertaking its activity, Vnesheconombank gives top priority to optimizing business processes and to a comprehensive approach to decision-making. The Bank’s key objectives in this respect are to provide better access to Vnesheconombank Group’s financial products and reduce time for processing customers’ requests.
In order to upgrade the mechanism for interaction between participants in Vnesheconombank Group, they developed a Procedure for Vnesheconombank and its subsidiaries to provide financial support for supplying Russian high technology products to foreign markets. The Procedure makes it possible to reduce time for processing foreign customers’ and Russian exporters’ requests as well as to set competitive interest rates on credits to fund Russian exports among other things through providing insurance coverage by OJSC EXIAR. This Procedure regulates interaction in providing export financing (a credit to the buyer) of finished products as well as limits a total period for making a decision on funding individual export supplies of Russian high-technology products to 90 days from a date of receiving a relevant request by the Bank provided that a complete set of required documents is submitted.
Vnesheconombank is also responsible for working out other decisions on enhancing export support in VEB Group.
In order to support national non-raw materials exports Vnesheconombank extends export credits to foreign purchasers of Russian products, works, services (non-credit institutions), foreign banks that extend credits to purchasers of products, states, governments and executive authorities of foreign states to purchase products. Vnesheconombank also provides credit facilities to Russian exporters to cover expenses on manufacturing products to be further supplied to foreign purchasers (pre-export financing).
EXPORTS GUARANTEE SUPPORT
Vnesheconombank provides guarantee support for Russian exporters of Russian products (goods, works and services).
The product line of Vnesheconombank’s guarantee products includes:
- advance repayment guarantees;
- due performance guarantees;
- tender guarantees;
- payment guarantees;
- guarantees in the form of standby letters of credit;
- counter guarantees as a security for any types of direct guarantees of other banks (Russian and foreign ones) - advance repayment guarantees, due performance guarantees, tender guarantees and others;
- VAT refund guarantees; guarantees in favor of customs.
Upon providing guarantee support for export contracts of Russian companies, Vnesheconombank cooperates with counterparties all over the world. Vnesheconombank’s world-wide geography of cooperation as part of providing exports guarantee support allows Russian companies to participate in export projects even in those countries known for a high level of political risks and objective obstacles to implementing contracts as well as in the countries where Russian commercial banks are not present.
Vnesheconombank’s direct guarantees are accepted by many foreign counterparties all over the world.
FUNDING FOR PROJECTS ABROAD
Vnesheconombank provides support for Russian direct investments abroad by way of participating in funding investment projects and acquiring assets in foreign countries in order to make the Russian economy more competitive.
While implementing major projects abroad, Vnesaheconombank operates at the intersection of state and private sector interests promoting the overall development of the national economy and implementing principles of public private partnership.
Vnesheconombank provides all-round support for Russian exporters without limiting itself to financial solutions being offered. In 2013, the Russian Government appointed Vnesheconombank as coordinator for exports comprehensive support.
A new mechanism for offering export services is a “single window” system allowing exporter companies and foreign purchasers of Russian products to fill in a request, submit a package of documents as well as get projects approved remotely inside Vnesheconombank Group. This solution makes it possible to make products offered by Vnesheconombank and its subsidiaries more accessible.
Now a technical solution of the said task is being developed. Relevant software and service are to be introduced into Internet networks until the end of 2014.
Information service to support exporters
Information consulting Internet service for Russian participants in foreign economic activities is functioning at Vnesheconombank’s site. Russian companies have the opportunity to promptly receive information on main issues of funding exports within Vnesheconombank Group among other things for them to be able to identify potential instruments for funding various projects.
You can see the rules for providing information and the list of standard requests as well as make a request with the use of the said service by going to the link.
Promoting interests of Russian exporters
Vnesheconombank gives high priority to creating favorable conditions for Russian companies’ export activities. To accomplish the said objective we participate in international exhibitions, workshops, business councils, intergovernmental commissions and other advisory agencies. The Bank participates in upgrading the legal and regulatory framework for supporting exports and cooperates actively with the business community to discuss topical issues of enhancing exports, working out joint proposals for future activities and searching for business partners for Russian companies.
Vnesheconombank participates actively in promoting interests of Russian companies abroad through working in a number of business associations. Being in charge of the Coordinating Committee for Economic Cooperation with Sub-Saharan Africa (Afrocom), business councils with Sweden, Brazil, Slovakia and Bahrain, Vnesheconombank helps Russian companies to tap foreign markets, promote their products, works services as well as raise investments for the Russian economy.