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1.

THE NATIONAL EXPORT SUPPORT INSTITUTION


The Russian Export Center JSC was established in 2015 as the main platform for building an integrated, effective development institution dedicated to creating a nationwide system of export support.

Though certain elements of the REC that provided direct financial and non-financial support to exporters had existed before as separate entities, it was only in 2016 that the Russian Export Center took shape as a single entity (see “Integration”).

The legal status and the functions of the REC in the sphere of export support are determined by Federal Law 185-FZ “On the amendments to the Federal Law “On the Bank of Development” and part 2 Article 970 of the Civil Code of the Russian Federation” of 29 June 2015.

>8.9

billion USD amount of exports supported in 2016 (excluding the Yamal LNG deal)

1.1

Strategy

The mission of the REC is to provide support and to facilitate the development of non-commodity exports by participating in state policy and creating an integrated, effective development institution.

The philosophy behind the export support provided by the REC Group is to complement the available solutions to fully realize the potential of non-commodity exports. The REC Group fills the market gaps left by the other commercial institutions in terms of both financial and non-financial support.

Under the priority project titled “System measures for the development of international cooperation and export”, the key role in creating the nationwide system of export support is assigned to the REC. This role includes three main functions. The REC Development Strategy 2019 approved on 24 January 2017 is congruent with the business model and the Development Strategy 2021 of Vnesheconombank Group.

Стратегия развития РЭЦ на перспективу до 2019 года, утвержденная 24.01.2017, согласуется с бизнес-моделью и стратегией развития ГК Внешэкономбанк до 2021 года.

The basic mid-term development area for the REC Group as regards organizational change is ensuring further modernization of the technology infrastructure, development of online services and online channels of export support.

FUNCTIONS OF THE REC GROUP IN THE NATIONAL SYSTEM OF EXPORT SUPPORT

SUPPORT

A single export support and development institution

  • Financial (insurance, guarantee, etc.) support of exports of goods and services
  • Non-financial support of exporters and export-oriented enterprises (finding partners, educational project, etc.)
DEVELOPMENT

Agent of the Russian government on functions, services and subsidies

  • Subsidy allocation
  • Participating in public functions and provision of public services
HEADQUARTERS

Headquarters of the priority program “International cooperation and export”

  • Coordinating the efforts of the participants to ensure that the goals in the prioritized areas are met
  • Participating in the optimization of the regulatory framework
  • Removing the administrative barriers and developing the export environment

KEY PERFORMANCE INDICATORS MET BY THE REC IN 2016

СSTRATEGIC INITIATIVES OF THE REC

DEVELOPING THE INFRASTRUCTURE OF THE EXPORT ENVIRONMENT

Create a perfect regulatory environment and the export infrastructure for the Russian exporters

MAINTAINING AND INCREASING RUSSIA’S NON-COMMODITY EXPORTS

Provide direct support to exporters and Russian investors abroad, facilitate projects related to non-commodity exports

DEVELOPING THE EXPORTS CULTURE

Increase financial awareness and shape the export culture in Russia to extend the list of potential exporters, with a focus on smaller scale exporters

CREATING A DEMAND FOR RUSSIAN GOODS AND SERVICES

Work with the current and potential customers of Russian exports, as well as promote Russia’s image abroad

FACILITATING THE INSTITUTIONAL DEVELOPMENT OF THE REC

Promote internal organizational change aimed at achieving high standards of service quality and ensuring the efficiency of REC’s activities as a development institution, as well as financial stability

1.2

Integration

In 2016 the REC Group successfully completed the integration of its companies, which made it possible for the Group to exceed its key performance indicator targets in the reporting period. The primary aim of the integration was to increase the quality of the services and to improve customer satisfaction. The aim was achieved through the development and introduction of uniform export support principles. Another benefit of the integration was that the corporate governance was streamlined, since most of the redundant corporate functions were successfully eliminated.

EXTERNAL EFFECTS OF THE INTEGRATION

As the result, all the companies of the REC Group — the REC, EXIAR and Eximbank of Russia — now operate under one brand and act as a single window for the Russian companies seeking export support.

A key effect of the optimization and reorganization was improved customer satisfaction that was achieved by developing and standardizing the business processes and by ensuring the transparency of the requirements applied to the business processes.

In particular, the integration made it possible to accept all company documents in a single package: once the front office has requested the data, it shall be stored in a shared database. This resulted in lower transaction costs and made it easier for the exporters to communicate with the companies of the REC Group on issues related to the financial and non-financial support and the educational project.


THE KEY BUSINESS PROCESS OF THE REC GROUP

NEW CONCEPT OF PROVIDING SERVICES TO THE EXPORTERS IN A ‘SINGLE WINDOW MODE’

INTERNAL EFFECTS OF THE INTEGRATION

A COMMON GOAL
PROFESSIONAL AND COMPETENT EMPLOYEES
SHARED VALUES AND CORPORATE CULTURE
UNIFIED RULES AND PROCEDURES
7%
increase in the amount of exports supported per employee in 2016

In addition to the advantages it offered to the clients, the integration helped streamline the Group’s business processes and corporate governance of the REC Group. Below is the list of key effects of the integration for the REC Group:

1

A unified strategic planning system, uniform corporate-wide KPIs for the companies of the Group, a unified motivational system, including individual goal maps for the employees

2

A fully aligned functional organization

3

A single front office, an integrated CRM system and request management business process

4

Streamlined back office, new risk management approaches, a single document package for all companies, etc.

5

Uniform performance quality standards

6

Uniform labor conditions and employee benefits

2016 saw significant improvement of the REC technology infrastructure, including the introduction of new services for the exporters and new internal IT solutions. The new instruments helped considerably increase the automation of operations and the quality of services.

Developing the CRM system enabled the REC Group to form a unified client base, ensure basic support of front office, client operations, request processing, non-financial services provision and partner accreditation, as well as to monitor the implementation of the integrated ongoing plan of projects and activities across the Group.

As the result of the integration, the Group developed a uniform methodological approach to credit risk assessment and created a risk limit assessment and approval procedure to be used by all of its companies, as well as a unified risk base calculation procedure.

The integration included amalgamating the centers of excellence, collective loan approval bodies (the Credit Committee), forming a single macroeconomic function, as well as standardizing and automating the credit risk assessment process.

As part of the integration, new approaches to the employee development were elaborated for business units and corporate functions. In the administrative sense, the effect of the integration was moving all employees to a single location — the office buildings of the World Trade Center in Moscow (12, Krasnopresnenskaya Embankment, entrance 9).

The integration resulted in increased productivity of the REC Group calculated as exports supported per employee. In 2016 this indicator increased by 7% compared to the previous year.