RU

1.

RUSSIAS’S EXPORT INSURANCE AGENCY


Building a comprehensive export support system and improving some of its areas is one of the key priorities in the development of the export potential of Russian high value- added goods and services. In developed countries, as well as in many developing ones, the functions of financially supporting national exports are performed by specialized institutions — the export credit agencies.

8.68

billion USD — amount of insurance support provided in 2016

+50%

increase in the number of exporters supported in 2016

Building a comprehensive export support system and improving some of its areas is one of the key priorities in the development of the export potential of Russian high value-added goods and services.

Building a comprehensive export support system and improving some of its areas is one of the key priorities in the development of the export potential of Russian high value-added goods and services. In developed countries, as well as in many developing ones, the functions of financially supporting national exports are performed by specialized institutions — the export credit agencies.

The Russian Agency for Export Credit and Investment Insurance (EXIAR, the Agency) was officially registered on 13 October 2011 as a joint- stock company with Vnesheconombank as its sole shareholder. Since 2015, the Agency’s sole shareholder has been the Russian Export Center JSC established by Vnesheconombank, with a view to implement the order of the Russian government [i], as a key institution for the state support and development of non-commodity exports in Russia. Within the REC Group, EXIAR and the State Specialized Russian Export- Import Bank (Eximbank of Russia, which in turn became a fully-owned subsidiary of the Agency in 2014) function as a one-stop shop providing a comprehensive toolkit of financial and other kinds of support to Russian exporters and investors.

EXIAR’s special status as a national ECA is outlined in the Federal Law “On the Bank for Development“ [i] . The law stipulates that the Agency is not subject to Russian legislation on running insurance operations — EXIAR is exempt from requiring a license as an insurance company.

The underlying operating principles of the Agency, requirements for ensuring financial stability, and the procedure and form of monitoring its activities are laid out in the Rules for Activities Related to Insuring Export Credits and Investments against Commercial and Political Risks [i] (hereinafter referred to as the Rules). A new edition of the Rules was prepared with direct involvement of the Agency’s experts and subsequently approved in 2016. The new edition enabled EXIAR to perform the following functions:

  • Cover the obligations of foreign contractors, in particular by means of guarantees and sureties, in relation to projects of national and strategic importance, or to projects regarded as a priority for the Russian economy;
  • Insure the property interests of Russian, foreign and international financial organizations that finance projects on the creation and modernization of export- oriented production facilities in Russia and related infrastructure.

1.1

Development strategy

mission

EXIAR's mission is to create a comprehensive credit and insurance toolkit with the aim of increasing the competitiveness of the Russian business in the global markets, acting in coordination with the other state institutions.

strategic goal

The Agency’s main strategic goal is to increase the volume of export support and ensure the widest possible access of various groups of the Russian business to the insurance support offered by EXIAR.

In 2015, the Agency’s Board of Directors approved the Development Strategy of EXIAR for 2015–2017 with an outlook up to 2020. The document outlines EXIAR’s mission, goal and key operational objectives, and defines priorities for the development of the Agency and the strategic targets (STs) for the period up to 2020.

The Agency acts as a center for the development of mechanisms of supporting Russian exports that applies global best practices while taking into account the requirements of the Russian legislation and the needs of Russian exporters. In addition, the Agency acts as the center of expertise on entrepreneurial and political risks faced by Russian exporters and investors abroad.

In line with the Strategy, EXIAR’s Board of Directors defined company-wide key performance indicators. The main KPI target — the amount of insurance support provided — was set at USD 6.6 billion for 2016. The actual performance was USD 8.68 billion, which is 32% higher than the target and amounts to more than one third of the ST for 2015–2017.

EXIAR’s main quantitative strategic targets

Indicator 2017 2020
Total supported (insured) non-commodity exports per year USD 10 bln USD 22 bln
Total supported (insured) non-commodity exports, cumulatively USD 22.7 bln in
2015–2017
USD 51.9 bln in
2018–2020
Number of unique exporters supported per year (excluding SMEs) 140 250

EXIAR’s key quantitative strategic targets



6.6
2016: target

BILLION USD

8.68
2016: actual

BILLION USD

amount of insurance support provided, 2016

140
2017

250
2020


number of unique exporters supported (excl. SME exporters)

22.7
2017

BILLION USD FROM 2015 TO 2017

51.9
2020

BILLION USD FROM 2018 TO 2020

total volume of non-commodity exports supported (insured)

10
2017

BILLION USD

22
2020

BILLION USD

annual volume of non-commodity exports supported (insured)

In line with the Strategy of the Agency, EXIAR’s Board of Directors defined company-wide key performance indicators.