IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 21 Jun 2016 | Removal date: 21 Jun 2019
Still in force

Trade finance

According to a press release of 21 June 2016 of the state Russian Agency for Export Credit and Investment Insurance (EXIAR), it has accorded with VTB Bank the conditions for issuance of an insurance policy to cover a loan with beneficiary the Development Bank of Mongolia.
The purpose of this insurance policy is to cover an export financing deal for supplies of Russian oil products for Mongolia's grown mining sector.

This export financing deals consists of the following main steps:

  • EXIAR insures VTB Bank as part of the insurance policy.
  • The Mongolian government issues a guarantee to cover the three-year credit line at the amount of 300 million USD.

An exact list of the petroleum products that form part of the export financing deal is not publicly available. However, Mongolia is highly dependent on Russian oil (see the provided 2nd source for more details). For example, in 2015, the relevant year for identification of the affected trading parties, the main exports to Mongolia have been under HS code 2710. In addition, 92% of these exports under HS 2710 were from Russia. These facts have been used for the identification of the relevant affected trading partners, i.e. the other jurisdictions-exporters (in addition to Russia) under HS 2710 to Mongolia in 2015.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other
271020 Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the bas
399 Other wastes & scraps
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271099 Other

Please report this page in case you detect an inaccuracy in its content.