ANNOUNCEMENT 20 Feb 2014In February 2014, the government of the Russian Federation announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
1. 20 2014
At a government meeting chaired by the Prime Minister of the Russian Federation, Mr Dmitry Medvedev, held on 20 February 2014 measures for the development of the system of support for non-oil and gas exports were discussed. Mr. Medvedev declared that the country's exports structure is traditionally dominated by oil and gas, that these commodities need to be substituted by high-tech and science-intensive products and that a system of incentives and support for foreign trade operations must be developed. As a part of this comprehensive state-supported modernisation of the export sector, Mr Medvedev stated that 'access to long-term and relatively cheap loans as well as insurance and guarantees for export contracts' should be enhanced.
The Prime Minister also revealed the 2014 state plans for support of the Russian exporters: "Last year, Vnesheconombank provided guarantees worth 120 billion roubles. This made it possible to export Russian industrial goods worth over 600 billion roubles. '...' This year, there are plans to channel an additional 100 billion roubles into state guarantees. '...' We have created a mechanism for providing financial support from the Vnesheconombank and its subsidiaries for high-tech exports. This mechanism should be used. We should create favourable conditions for issuing loans to foreign buyers of Russian goods and services in line with market interest rates.
Non-financial mechanisms for supporting foreign trade operations continue to develop. The activities of Russian foreign trade delegations should become more purposeful. These trade delegations '...' should become really effective because otherwise no one will need them. Our missions at international economic organisations should also work efficiently. '...'
What else does Vnesheconombank have to focus on? It has to focus on supporting small- and medium-sized businesses and beginner entrepreneurs, who plan to produce hi-tech products and are interested in foreign markets. These clients should be offered specialised products - by specialised products I am referring to available credits that take into account their specific circumstances, including risks inherent in this type of business."
At this state meeting, the Russian government took the following key decisions related to support for non-oil and gas exports: