offices operate in Vietnam, Kazakhstan, Iran, Tajikistan, Argentina and Belarus; 4 of them were opened in 2016
REC Group takes a proactive approach to cooperation with foreign partners. Specifically, it is a party to various multilateral cooperation platforms where it can share experiences and best practices with other ECAs to the fullest extent and in most efficient way. Regular meetings in such a format help REC Group to be kept informed of the key trends in the export crediting and insurance markets and to lay groundwork for practical cooperation and implementation of joint export projects.
In pursuance of the arrangements under the Memorandum of Understanding on Cooperation among BRICS Export Credit Insurance Agencies (ECAs) signed in 2014 in Fortaleza (Brazil), EXIAR initiated creation of a new format of cooperation — BRICS ECAs Forum.
Holding annual meetings both at the level of ECAs CEOs and at the expert level
Discussing topical challenges and issues throughout the year
Joint perspective projects, including in cooperation with other international institution
Discussing the matters of settling losses and other technical aspects of expert credit insurance
As a result of 2016 meeting among BRICS ECAs CEOs, the General Provision on Cooperation was signed. Its text was drafted by EXIAR. In March 2016, EXIAR organized and held the first seminar at the level of experts as part of the BRICS ECAs Forum.
Further, as part of the Eurasian Economic Union (EAEC), EXIAR continues to work over the issues of providing state support to exports within the Union. EXIAR, together with agencies of other EAEC member countries and with involvement of the Eurasian Economic Commission, address the issues of expanding export operations within the EAEC.
With the growth of the support volumes and portfolio diversification, more attention is paid to the delivery of international projects in cooperation with partners from foreign countries. Such projects can be efficiently implemented largely thanks to such instrument as reinsurance. This instrument enables the parties to distribute risks among several ECAs or commercial reinsurers.
EXIAR, acting within its authority, can reinsure a portion of risks under the insured projects or provide reinsurance coverage to foreign ECAs, provided that the Russian side is also involved. Moreover, this scheme of cooperation offers the insurance coverage to Russian enterprises carrying on their export operations through foreign trading houses in those jurisdictions where EXIAR’s direct agreement does not apply. Totally, REC Group entered into more than 20 cooperation agreements with foreign ECAs and commercial insurers. In particular, in 2016, it signed the cooperation agreement with EIAA (Armenia), facultative reinsurance agreement with Asuransi Asei (Indonesia) and the framework agreement for support of Japanese companies’ subsidiaries in Russia with Japanese Export Credit Agency, NEXI.
Given that the REC Group’s companies operate in reliance on OECD Guidelines providing for recommendations and control mechanisms relating to the state supported expert crediting, REC Group’s representatives regularly act as members of Russian steering committees and advisory bodies on the matters of the relationship between Russia and OECD and attend meetings of OECD task forces for state supported export crediting at the international level.
Further, in 2016, REC Group’s representatives were involved in negotiating the export crediting issues, in particular, as members of the International Export Credits Task Force formed at the initiative of the USA and China to develop the most optimal international principles to regulate export credits. This task force encompasses both member countries and non- member countries of the OECD Arrangement on Officially Supported Export Credits and provides a platform to discuss in more detail the terms of export crediting and to develop international regulations under due consideration of interests of different countries and according to the best global practices.
Since 2012, EXIAR is a member of the Prague Club, which constitutes a platform for sharing experience and information among ECAs and is its active participant. In 2016, there was a merger between the Berne Union and the Prague Club, thus enabling the Agency to more closely cooperate with the lead
The first foreign office, which was opened by EXIAR in Belarus in 2015, continues to develop as a comprehensive center of excellence for REC Group as a whole. The office is in charge of assisting with implementation of Russian export projects in Belarus, including cooperation projects with involvement of Russian and Belarusian suppliers through building up a network of existing and potential importers of Russian products and liaisoning with financial institutions, local authorities and subsidiaries of Russian companies in Belarus.
In 2016, 8 transactions were executed with the assistance of the government with the volume of supported export amounting to more than $ 2,580.6 million. Also, in December 2016, the Strategic Cooperation Agreement was signed between REC and GPO Belenergo as part of joint delivery of projects in the sphere of development of the Belarusian power industry.
REC Group, together with the Russian Ministry of Economic Development, implements a concept of expansion of the network of trading houses to promote Russian exports in foreign countries. In order to ensure the maximum reach of Russian exporters and potential exporters, the concept provides for launching own, partner and mixed regional offices abroad. At the end of 2016, REC Group’s offices operated in Vietnam, Kazakhstan, Iran, Tajikistan, Argentina and Belarus. The key task is to search partners for Russian exporters on the foreign markets. More than 500 partner search requests are being concurrently processed with 252 requests having been successfully completed for 121 Russian companies.