Export support in 2019

Russian non-resource non-energy exports in 2019

According to REC, Russian non-resource non-energy export (NRE) volumes reached $155.1 billion in 2019, which was 0.5% more than in record-breaking 2018. NRE demonstrated rather slow growth due to a slowdown in world trade in a whole (resulted in a poor demand, in particular, for ferrous metals, and a decrease in prices for several important goods), growth of protectionism and trade wars.

Dynamics of non-resource exports in Russia, $ billion

Russian NRE is mainly focused on the CIS countries, East Asia, Europe. Middle East, Africa and America are also of significant importance.

Russia’s NRE by industry, $ million
2018 2019 Growth Rate, %
Chemical industry25,37424,687-687-2,7%
Metallurgy and precious metals47,08347,8807961,7%
Timber industry11,86111,068-793-6,7%
Pharmaceuticals, perfumery, cosmetics1,4891,73824916,7%
Consumer industry1,3121,4391269,6%
Other industries7,3518,8671,51620,6%
Agroindustrial complex25,96325,630-333-1,3%
Fat-and-oil industry3,1744,06789328,1%
Meat and dairy67187920831,1%
Food and processing industries3,5173,97545813,0%
Other agricultural industries2,9533,41846515,7%

Metallurgy and precious metals, pharmaceuticals and cosmetics, and other industries are among those that have demonstrated growth in 2019 (growth in consumer and aromatic by-products exports). Slack economy caused a decline in the chemical and timber industries. At the same time, they showed an increase in the physical volume of export.

Agroindustrial complex showed a decline caused by a decrease in grain exports compared to last year due to a heavy crop of 2017-2018 and high prices in 2018. However, the fat-and-oil industry showed a growth of 28% due to the heavy crop of oilseeds and the development of processing. The meat and dairy industries are characterized by a 30% growth due to an increase in the supply of chicken meat and by-products to China. The food and processing industry showed an increase in the supply of confectionery, sugar, and milling products.

REC’s support in 2019

> 11 thousand
thousand unique exporters obtained support in 2019
> $ 19.5 billion
total exports supported by the REC Group in 2019

The aggregate exports supported by the REC Group, which implements the function of a unified institution, reached $19.5 billion, which is 14% more than the target volume for 2019. At the end of the year, more than 11 thousand unique exporters obtained support, which is almost 10% higher than the same figure for last year.

The fundamental feature of the REC Group’s product offering is to follow up exporters until the deal closure and to provide support for its implementation is a «one-stop-shop» manner. The existing product line allows exporters to obtain necessary resources and financing, contacts, skills and competencies as quickly and efficiently as possible to initiate or support the implementation of export deliveries.

Financial support

The purpose of insurance and credit guarantee support for exporters is to develop export activities and create conditions to help Russian exporting enterprises to get access to global commodity markets. The activity is carried out by providing instruments aimed at the insurance of export credits and investments against business and political risks, as well as loans and guarantees.

The integration of EXIMBANK OF RUSSIA and EXIAR in the REC’s corporate structure makes it possible to align their financial products. Thus, the integrated line of credit and insurance products of the REC Group allows providing comprehensive financial support to Russian export-oriented enterprises both in terms of risk coverage and financing for the implementation and development of export activities.

Insurance support

EXIAR’s main goal is to increase the scope of insurance support provided to Russian NRE exporters as part of the improvement of the competitiveness of Russian products on global markets.

The Agency provides a comprehensive set of export insurance support instruments in coordination with other companies of the REC Group, state and interstate institutions and commercial organizations both in the Russian Federation and abroad.

The Agency outperformed a number of target performance indicators in 2019. Supported exports amounted to $18.4 billion, more than 400 unique exporting companies obtained support. EXIAR JSC traditionally focuses on supporting industries that provide the largest stable volumes of Russian non-resource non-energy exports (metallurgy, engineering, chemical industry, agroindustrial complex, etc.)

The country and industry structure of insurance obligations speaks for the diversification of risks assumed by the Agency. In terms of geography, the major volume of assumed obligations accounts for the CIS countries, Europe, Latin America.

Liability structure under the accepted obligations by region
RussiaCISLatinAmericaEasternEuropeWesternEuropeAsiaAfricaAs of 01.01.19As of 01.01.20NorthAmericaPacific basincountriesand Australia0%5%10%15%20%25%
Liability structure under the accepted obligations by industry
As of 01.01.19As of 01.01.20EngineeringproductsChemicalproductsMetalproductsServicesand worksFoodTimber and paperproductsFuelOtherindustries0%20%40%60%

In 2019, short-term receivables insurance continued to be one of the most demanded products offered by the Agency. This product primarily attracts the companies that regularly deliver goods to foreign counterparties on a deferred payment term of up to a year.

In 2019, short-term receivables insurance products were used by exporters from various industries. The key demand accounted for chemical (including fertilizers), metallurgical, agroindustrial, engineering industries. The past year is characterized by growing demand for the said insurance product on the part of food and beverage producers. The same is with the exporters of timber products. It is worth noting the increased demand for the said product on the part of manufacturers of building and finishing materials. The geography of supplies declared by exporters, which use short-term receivables insurance product, remains diverse and includes Europe, Latin America, the CIS, Asia and Africa From a large number of projects supported in 2019, the following ones deserve special attention:

  • Short-term receivables insurance contract with Resource Group with a turnover of $12.8 million. Resource Group is primarily engaged in poultry farming. The Agency supports the export shipments of the Resource Group to the countries of the Middle East and Southeast Asia, thereby helping to increase trade turnover with existing counterparties or grant a delay to those counterparties, with which the company has previously done business on a prepaid basis.
  • Short-term receivables insurance contract with Whirlpool RUS LLC. The company is one of the world’s largest manufacturers of household appliances. Whirlpool Group owns two factories in the Lipetsk Region, which produce refrigerators and washing machines, as well as one of the largest logistics centers for household appliances in Europe. Under the concluded contract, Whirlpool RUS LLC obtained insurance coverage for the supply of goods under Indesit, Hotpoint Ariston, Whirlpool, KitchenAid trademarks to Kazakhstan, Kyrgyzstan, Belarus, Mongolia and Armenia.
  • Short-term receivables insurance contract with the Russkaya Kozha Group. Agency’s insurance coverage is required to protect the Group against delivery non-payment risk, as well as to ensure the possibility of fundraising. The REC Group also actively supports the expansion of the Russkaya Kozha Group’s export activities using its agent and non-financial support tools, in particular, within the product transportation support program. The products of the Russkaya Kozha Group are traditionally recognized by experts at European leather exhibitions. Today, leather produced by six companies of the Group is supplied to Portugal, Spain, Germany, Poland and other countries. It is also acquired by Italian shoe manufacturers and Indian and Turkish manufacturers of leather goods, who are experts in quality leather.
  • Export supply insurance contract with the RUST Group, the manufacturer and the largest exporter of alcoholic beverages. The contract concluded with EXIAR JSC covers more than 20 countries. Russian Standard Vodka occupies 30% of the Russian market of premium vodka and supplies its products to more than 85 countries.

The insurance products for the financial institutions have been highly demanded in transactions for the support of the Russian exporters or foreign buyers. In 2019 a number of successful transactions were implemented within the framework of insurance of loans granted by Russian financial institutions for the purposes of the fulfilling the export contracts for supply of railway coaches to Kazakhstan, as well as supply of food, beverages and household goods to various European countries, fish products to the Netherlands, rough diamonds (originated in Russia) to Belgium. The significant support also has been provided by means of export factoring insurance in various export transactions connected with the food industry, chemical products, automotive, metallurgy.

The most successful projects were:

  • Comprehensive support contract for the supply of Russian metal and agricultural products to Turkey with the participation of Turkish DenizBank A.S. The deal is unique for both the Russian and Turkish markets. This is the first project to finance two-way trade in national currencies.
  • Joint project with Hungarian Export Credit Insurance PLC (Magyar Exporthitel Biztosito Zrt.) The project provides for insurance coverage for financing the Russian-Hungarian project for the supply of passenger cars of various classes to the Arab Republic of Egypt for Egyptian National Railways. Joint Russian-Hungarian proposal that includes the production and supply of passenger cars and the provision of related financing to the buyer has allowed to implement one of the largest Russian export engineering projects. Hungarian Export-Import Bank and EXIMBANK OF RUSSIA JSC are the creditors under the project. TRANSMASHHOLDING JSC represented by TVZ JSC (Russian production site), Transmashholding Hungary Kft (contract holder) and Dunakeszi Jarmujavito Kft (Hungarian production site) is responsible for the production and supply of passenger cars. This is the largest export project for TRANSMASHHOLDING JSC.
  • The first-ever project for Russia and Uzbekistan on the supply of vegetable oils on deferred payment terms. The Agency supported the supply of oil and fat products carried out by Ingredients JSC to Namangan Universal Savdo Invest, which is a wholesale supplier of vegetable oils and other food products to the Uzbek market. The Uzbek company claimed for a 180-calendar-days deferral. Financing within the framework of export factoring was provided by EXIMBANK OF RUSSIA JSC against insurance coverage of EXIAR JSC.

The Agency’s financial stability is within the set limits. Capital adequacy indicator grew from 1.39 to 1.45 in 2019. The estimated probability that the Agency will be able to fulfil independently all its insurance obligations with a 10-year horizon amounts to 97.2%, which is comparable with the credit ratings of Baa/BBB assigned by the international credit rating agencies.

Credit and guarantee support

EXIMBANK OF RUSSIA (Bank) provides Russian exporters with a wide range of banking services: lending, participation in bond issues, provision of guarantees, documentary operations. The Bank’s services are available to exporters of Russian goods, works or services, Russian manufacturers, exporting products through their trading houses abroad or agents, foreign buyers of Russian products, foreign financial institutions and are aimed at financing contracts for the purchase of Russian goods (works or services).

The Bank offers financial products, including those supplemented by insurance products of EXIAR JSC, which help to fill the gaps on the market both in terms of product types and in terms of the level of the client’s credit risk and geography of export supplies at all stages of their implementation.

In 2019, the Bank’s product line was supplemented by SME-focused financial instruments. To accomplish the objectives set by the REC Group for the period 2020-2024, within the framework of the «International Cooperation and Export» national project the Bank focuses on increasing the volume of export support for SME exporters and expanding the client base represented by small and medium-sized businesses. When developing products for SMEs, the main focus is to ensure that the Bank will be able to promptly respond to customer requests with a reduced package of documents. In 2019, an out-of-the-box solution for SME exporters called «Export Standard» was introduced as part of pre-export lending products. The product provides for the financing of not more than 10 million rubles and a VAT refund guarantee for up to 5 million rubles for small exporters under a simplified procedure, with a standard package of documents and a shorter time for issuing such guarantees.

Also EXIMBANK OF RUSSIA JSC actively promoted a new product called «Non-recourse export factoring against the EXIAR’s coverage» (financing against the assignment of a monetary claim), which is part of post-export financing instruments.

According to the Russian Association of Factoring Companies, at the end of 2019, EXIMBANK OF RUSSIA JSC was ranked second in terms of the volume of transactions among the participants of the Russian factoring market that provide international factoring services.

The most successful projects were:

  • Loan agreement with Atomstroyexport JSC under «Financing of export contract costs» product. Under this agreement, the Bank finances the costs under the export contracts concluded by Atomstroyexport JSC to supply equipment for the 3rd and 4th power plants of Kudankulam NPP in India and construct Ruppur NPP in Bangladesh.
  • Non-recourse framework factoring agreement against the EXIAR’s coverage concluded with SIBUR Holding PJSC. This is the first time when the Bank supports the client’s export projects implemented on a deferred payment basis. The list of countries is not limited. The agreement allows to serve both debtors from the CIS and foreign countries. Transactions are carried out with the support provided by EXIAR JSC, which provides insurance coverage for receivables, against which financing is granted. This allows EXIMBANK OF RUSSIA JSC to provide SIBUR Holding PJSC with financing in the currency of a contract in the amount of 100% of the delivery amount immediately after shipment and completely cover the risk of default of foreign buyers.
  • Credit facility agreement with EuroChem Trading GmbH (Switzerland), a trading company of the Eurochem Group. The Group is one of the world leaders among manufacturers of nitrogen, phosphorus and potash fertilizers. The credit facility is used by the borrower to make payments under the ammonia purchase agreement concluded between the borrower and EuroChem-North-West JSC (exporter). The subject of delivery under the export contract is liquid ammonia, produced by the exporter at the plant in Kingisepp (Leningrad Oblast). EuroChem-North-West JSC is a new facility of the EuroChem Group, which was officially opened in June 2019 during the St. Petersburg International Economic Forum. The new ammonia production facility is the largest in Europe and Russia in terms of production plant capacity.
  • Credit agreement with A.S. Mill Products H.K. Limited. The company is a key supplier of products of Kamensk Uralsky Metallurgical Works JSC (KUMZ JSC) to Asian markets. KUMZ OJSC manufactures high-tech products from deformable aluminum and magnesium alloys, which are widely used in various industries, including aircraft and shipbuilding, oil and gas industry, etc. The signed agreement is aimed at increasing the export volumes of KUMZ JSC to Asian markets as part of the enterprise’s strategy.
  • Credit agreement with one of ALROSA’s standing customers, Dali Diamond, an international diamond producer. The credit agreement between EXIMBANK OF RUSSIA and Dali Diamond provides for the opening of a revolving credit line to finance the purchase of raw diamonds from ALROSA. The risks under the agreement are covered by EXIAR JSC.Dali Diamond is an international company with the headquarter in Antwerp. The company manufactures and trades diamonds for three generations and is one of ALROSA’s core customers.

In 2019, the Bank demonstrated positive results in a number of areas:

  • The export support volume under credit and guarantee support reached $1.9 billion, taking into account transactions against the insurance coverage of EXIAR JSC, which is 10% more than last year indicator.
  • The credit portfolio of export support amounted to 94.7 billion rubles as of 1 January 2020, demonstrating a 19% increase as compared to last year ( 79.2 billion rubles as of 1 January 2019).
  • Over the past few years, the Bank has consistently demonstrated positive net profit dynamics. According to 2019, net profit amounted to 3.5 billion rubles.
  • The Bank ensured a safety margin and a liquidity level sufficient to support exports amid the volatility of financial markets and sanctions.

By increasing the volume of support provided, the Bank seeks to minimize risks and optimize the quality of its portfolio. For example, the actual indicator of the average reserve ratio for the loan portfolio of 2019 remains at a stable low level of 2.0%. More than 70% the portfolio for 2019 belongs to 1st or 2nd quality categories. The Bank highly diversified export support both by industry and by region.

In 2019, the Bank mainly supported engineering, metallurgy, chemical industry and agroindustrial complex.

Structure of export supported by EXIMBANK OF RUSSIA in 2019, by region
Structure of export supported by EXIMBANK OF RUSSIA in 2019, by industry

In 2019, the increase in the number of supported exporters exceeded 40%. The Bank supported 293 exporters from 41 regions of the Russian Federation.

Non-financial support

exporters were provided with non-financial support

Non-financial support is mainly focused on small and large non-exporting companies. Non-financial support is carried out through the development of a product offering with maximum standardized products and an increase in the share of online services, which will allow to easily scale product sales.

Most often clients applied for educational services. Many companies applied for research, export deliveries support, partner search and certification services:

  • REC JSC held a meeting with Basis LLC in its office to discuss the marketing of goods to the Republic of Belarus. Following the results of the meeting, the company applied for the consultation of the REC’s representative abroad and the high-level buyer search. Based on the results of the services provided, the company managed to find a buyer and conclude the contracts for the supply of equipment for food packaging to the Republic of Belarus.
  • During the reverse business mission under the auspices of the ESC for the Rostov region, a negotiations were organized for the Uzbek company with the Concern Pokrovsky to reach agreements and conclude export contracts for the supply of products (beet-root sugar). The parties agreed on the possibility to increase the volume of export by the Rostov company with the products of EXIMBANK OF RUSSIA JSC (export factoring).
  • INGREDIENCE JSC was provided with the services allowing to search for and select a potential partner in the Republic of Uzbekistan (fat and oil products).
  • With the support of REC in 2018, PLODOIMPORT LLC (food products) managed to enter the Chinese market and increase exports. This helped the company to win Exporter of the Year 2019 Award (nomination «Exporter of the Year in agroindustrial business» in the SME category). In 2019, the exporter was provided with consulting services on e-commerce, and searched for a foreign buyer. Within the framework of the Anuga Food Fair (Germany), agreements of intent were signed with the support of the REC Group to launch cooperation with German and Australian retail chains.
  • With the participation of the Moscow office of REC JSC and the representative office in Tashkent negotiations were organized with the Uzbek company operating on a deferred payment basis. The transaction was structured using the Bank’s financial support instrument.
Structure of services provided in 20191
EducationalservicesResearchExportdeliveries supportFree salecertificateSearching for partners36%25%24%13%2%
Supported exporters by regions
030060090012001500180021002400Central Federal DistrictVolga Federal DistrictSiberian Federal DistrictNorthwestern Federal DistrictSouthern Federal DistrictUral Federal DistrictFar Eastern Federal DistrictNorth Caucasian Federal District38%17%13%11%8%6%4%2%

Educational services

Educational services are provided by ANO CPE Export School of Russian Export Center JSC (the REC Export School), an educational organization established within the REC Group.

To support and boost the development of export activities of Russian enterprises in 2019, the REC Export School implemented a number of acceleration programs that involved enterprises of the military-industrial complex of the Republic of Udmurtia, representatives of partner companies of SIBUR petrochemical holding, export-oriented companies of the Republic of Tatarstan (jointly with KPMG). Following the results of participation, the companies managed to convert 50% of arrangements into concluded export contracts.

certificates of advanced training were issued by the Export School in 2019.

Acceleration programs of the REC Export School are a set of group training modules and information and consulting services, which are provided to participating companies individually in the mentoring format. These programs allowed 25% of participants to conclude export contracts within the first 12 months of training. As part of the program, each company develops plans to enter 3 export markets (from creating a base of potential buyers, choosing sales channels and promoting products to the selected markets to structuring the financial terms of transactions and using the instruments of state support).

Moreover, in 2019, representatives of 159 companies-participants in the «Labor Productivity and Employment Support» national project underwent specialized training under the Export Growth Accelerator program powered by the REC Export School and implemented jointly with the Ministry of Economic Development of the Russian Federation. Based on the results of the training, 37 companies signed 65 contracts for foreign trade supplies to the CIS countries, Europe and the Middle East within the first 8 months. This program is implemented by the Export School under Decree of the Government of the Russian Federation No. 513 dated 26 April 2020.

In late 2019, the REC Export School launched a new acceleration program called «Export Boost» for small and medium-sized businesses experienced in export activities. A pilot program was launched in 6 regions of the Russian Federation. 56 SMEs were selected under the developed methodology to participate in the program.

According to the results of face-to-face and online training, the REC Export School granted 1,069 certificates of advanced training in 2019.

In 2019, the REC Export School supported 5,160 exporters by providing its educational services.

International certification

REC assists companies in obtaining documents for the introduction of Russian products on international markets, confirming that the products comply with the requirements of foreign regulations and international standards. REC provides advisory services on the foreign market requirements, which Russian products shall comply with, including voluntary requirements, the fulfillment of which is necessary to conclude foreign trade contracts, as well as on conformity assessment.

REC provides information on international conformity assessment bodies, including certification bodies and testing laboratories accredited (in some cases «notified») in foreign countries, operating within the framework of international and regional organizations and certification systems, with the help of which companies can obtain the necessary documents on conformity assessment (declarations of conformity, certificates, test reports, etc.) to introduce Russian products on foreign markets. REC issues a free sale certificate to exporters of Russian products required by foreign regulations. In 2019, REC provided support to 229 exporters, including 152 SME exporters. Export support volume amounted to $38 million.

In 2019 with support under the program for the adjustment of export goods
were provided with support
856 exporters
еxport support volume amounted to
$ 38 million

Intellectual property

REC provides any company that plans export activities with an opportunity to receive a free qualified advice on a wide range of intellectual property issues, including:

advisory services were provided to
exporting companies
  • analytical materials on the current situation with intellectual property;
  • recommendations on patent and legal protection;
  • information on possible procedures for the legal protection of objects of patent law and trademarks abroad;
  • recommendations for choosing a procedure for the legal protection based on information on registered trademarks, objects of patent law and countries of intended export of products/technologies;
  • services for the preparation of a list of required documents and the calculation of approximate costs of registration of objects of patent law and trademarks abroad;
  • assistance in the preparation of license agreements with foreign partners, etc.

Sectoral export planning

As part of sectoral planning, a database of investment projects was developed. The database includes 1,894 projects with a total budget of 14.5 trillion rubles, the implementation of which will ensure an increase in non-resource non-energy exports of up to $76.9 billion by 2024. The said database made it possible to develop a sectoral planning report, including 82 proposals on state support measures provided to non-resource non-energy exports.

Agency support

Acting as a proxy of state support, REC performs a number of agency functions. According to 2019, support was provided to 1,385 exporters.

The most popular services included the participation in congress and exhibition events, the compensation for transportation costs, as well as licensing.

Structure of services provided by REC JSC as an agent in 2019
ExhibitionsTransportation ofindustrial productsMade in RussiaСертификация продукцииLicensingTransportation of AIC productsMade in Russiamanufacturer certificationAIC promotion39%20%14%11%7%7%2%

Promotion of high-tech products to foreign markets

Carrying out its activity under Decree of the Government of the Russian Federation No. 342 dated 28 March 2019, REC acts as an agent that distributes subsidies for partial compensation for the costs associated with high-tech, innovative and other products and services promotion to foreign markets.

As part of the use of subsidy funds, Russian export-oriented companies participated in 107 events (including 70 foreign exhibitions, 12 business missions and 25 local events and international congresses). In 2019, REC supported 107 events versus 104 in 2018.

Wide sectoral coverage of events was also ensured. Russian exporters participated in engineering, chemical, timber, oil and petrochemical, agroindustrial, pharmaceutical and cosmetic, IT, tourism, creative exhibitions, etc.:

  • China International Import Expo 2019 was held in China (Shanghai) on 5-20 November 2019. 43 exporting companies took part in the exhibition. Russian exhibitors occupied 1,256 m2. 518 business meetings were held.
  • SIAL 2019 was held in the PRC (Shanghai) on 14-16 May 2019. 66 exporting companies took part in the exhibition. Russian exhibitors occupied 894 m2. More than 350 business meetings were held.
  • GITEX 2019 was held in the UAE (Dubai) on 6-10 October 2019. The exhibition was attended by 27 exporting companies. Russian exhibitors occupied 416 m2. More than 270 business meetings were held.

Business missions are another important support instrument that allows to form a base for the development of Russian exports and the promotion of individual companies on specific markets. During the events, Russian participants have the opportunity to comprehensively assess the potential of cooperation with the selected country, as well as to establish initial contacts with potential buyers and partners. Business missions are conducted as per geographic priorities for promoting Russian non-resource exports and taking into account the needs of business community.

On 14-15 August 2019, a comprehensive business mission of Russian industrial enterprises to the Kingdom of Thailand took place.

That business mission covered multiple Russian export-oriented companies from various industries, in particular, IT and digital technologies (including cybersecurity and smart city technologies), transport engineering and infrastructure, pharmaceuticals and biotechnology, agroindustrial complex (food industry, agricultural machinery, agricultural technologies), investment and finance industries.

On 17-18 September 2019, there was held a business mission of 15 Russian food industry enterprises (food, confectionery, chocolate, cheese, dairy and meat products, snacks, etc.) and IT companies to Vietnam (Ho Chi Minh City). The business mission was held at the permanent demonstration and tasting pavilion.

During the business mission, 10-15 target meetings were organized for each Russian company.

As a result of the B2B meetings, thanks to effective business matching, the relevant agreements were reached on several export contracts worth more than $10 million. The exporters also highly appreciated the pavilion, which provides the opportunity to host events and conduct negotiations, as well as the REC office in Vietnam.

On 22-24 October 2019, there was held a specialized business mission of IT companies to the Republic of Belarus (with the participation of the Digital Business Confederation of the Republic of Belarus, the Infopark Association, the Administration of the High-Tech Park of the Republic of Belarus) within the framework of BANKIT-2019. The event was attended by representatives of the high-tech sector. During the business mission, a cooperation agreement was signed within the framework of the «Orsha Region Development Program for the period until 2023» project.

The geography of congress and exhibition events supported by REC includes almost all regions of the world, namely Western Europe, Eastern Europe, North America, Latin America, East Asia, Southeast Asia, South Asia, Middle East, North Africa.

Promotion of agroindustrial products to foreign markets

To promote agricultural products to foreign markets, currently, 3 demonstration and tasting pavilions with Russian food products operate in the UAE (Dubai), China (Shanghai) and Vietnam (Ho Chi Minh City).

The pavilions are an effective tool for Russian companies promotion. They serve as the points of presence of Russian manufacturers on the target markets.

Subsidies for partial compensation of export credit interest

In 2019, a new export support program was announced within the framework of the Rules for the provision of subsidies from the federal budget to organizations for partial compensation for interest under export credits and other similar financing instruments, as well as partial compensation for the insurance premium under export credit insurance contracts approved by Decree of the Government of the Russian Federation No. 191 dated 23 February 2019.

The program ensures the implementation of a mechanism to support non-resource Russian exports and is held with the participation of the Ministry of Industry and Trade of the Russian Federation.

Within the framework of the program, 34 applications were submitted by the commercial banks for subsidy agreements. Following the examination of the said applications, the Ministry of Industry and Trade of the Russian Federation and REC JSC concluded 15 tripartite agreements on the provision of subsidies from the federal budget for partial compensation for interest under export credits and other similar financing instruments, as well as partial compensation for the insurance premium under export credit insurance contracts.

SME support

Taking into account the goal to increase the share of SMEs in the Russian economy, REC sets the objective of unlocking the export potential of SMEs and increasing the number of exporters in this segment.

In 2019, the Group continued to actively develop products and programs aimed at creating favorable conditions for sustainable SME share growth in Russian exports.

The first stage of the introduction of a special line of financial support instruments for SME exporters was accomplished: a pilot credit-guarantee conveyor was launched, the first «out-of-the-box» credit, guarantee and insurance products were developed, a special incentive package was developed to serve new exporters’ settlement operations under export contracts. The development of the financial product line for SMEs contributed, in particular, to an increase in the share of the small and medium-sized businesses in the structure of exporters supported with credit guarantee instruments (48% of the total number of supported exporters, which 11% more than in 2018).

As part of SME support, 8 acceleration programs were launched on the basis REC and partner infrastructure aimed to assist the participating companies with deal closures.

From 2016, the REC Export School implements a basic training program in the form of export workshops called «Organization of export activities of Russian enterprises.» The program is aimed to train novice exporters, mainly SMEs, from the Russian regions. In 2019, the program was implemented through operators in 67 regions of the Russian Federation. During the reporting period, almost 600 workshops were held, in which more than 3,600 companies took part.

The share of SMEs in the total number of exporters supported by the REC Group reached 80 %. SME exporters were mainly interested in educational services, research, searching for partners.

One of the priority objective for 2020 is the further improvement of the product line for SME exporters, as well as the increase in the volume of financial support for SME exporters.

Support services provided to SME exporters
Educational servicesExport deliveriessupportAgency supportResearchSearching for partnersFree salecertificateInsuranceCredit and guaranteeservices36%21%21%12%7%1%1%1%
80 %
is the share of SMEs in the total number of supported exporters