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Sustainability Report 2013


Support to Exports

To launch a robust accelerated growth and ensure its competitive edge, the Russian economy needs to push its export opportunities and diversify its exports. Moving Russian complex manufacturing products to external markets becomes increasingly critical, along with a wider sales geography and stepped-up exports. We view our support to exports of high-tech Russian products as a core priority of the Bank as the national development institution.

Export support framework

To enhance its performance in promoting national exports, Vnesheconombank applies a comprehensive approach that provides for expanding and improving the mechanisms of support to Russian manufacturers. In 2013, Vnesheconombank’s priorities in export support were as follows:

  • build up the export finance portfolio and the number of supported exporters;
  • expand lending to foreign buyers of Russian high-tech products;
  • enhance the efficiency of export finance business processes;
  • set up an integrated framework for Vnesheconombank Group’s support to exports.

In 2013, Vnesheconombank was actively building up its financial support to Russian industrial exports. During the year, the Bank’s export loan portfolio grew by more than 1.5 times to RUB 22.3 bn as of the year-end. The portfolio of guarantees issued by Vnesheconombank to support exports more than doubled over the year to reach RUB 99.6 bn.

By the end of 2013, the overall export financing portfolio of Vnesheconombank attained RUB 122.1 bn. The amount of all contracts supported by the Bank totalled RUB 663.3 bn, including RUB 491.9 bn of new contracts that were supported in 2013.

As of late 2013, Vnesheconombank’s portfolio included 161 bank guarantees and 17 export loan agreements. During the year, the Bank approved the financing of 7 export projects for a total exceeding RUB 112 bn. Support was provided to 32 companies.

In 2013, the Bank also set up an automated inquiry service for inquiries on key export support topics on Vnesheconombank’s web-site to provide comprehensive information and advisory services to Russian exporters on a “one stop shop” basis.

Export finance portfolio (RUB bn)
Vnesheconombank’s export finance portfolio broken down by country importing Russian goods and services as of 31 December 2013

Export support framework in Vnesheconombank Group

Success story


Support to Exports of Sukhoi Superjet 100

Initiator: OJSC Sukhoi Civil Aircraft

In 2013, Vnesheconombank’s management made a decision to participate in syndicated loans for up to USD 32.1 mn to finance the delivery of 5 Sukhoi Superjet 100 passenger aircraft made by OJSC Sukhoi Civil Aircraft to the end customer, ABC Aerolíneas S.A. de C.V. (Mexican United States). The shipment of Sukhoi Superjet 100 aircraft to Mexico is financed under the tripartite agreement between Vnesheconombank and Coface and SACE export credit agencies of June 2011. The agreement provides for building an integrated system of financing international sales of Sukhoi Superjet 100 using a loan and lease mechanism of financing aircraft exports to foreign buyers. Under the terms of the agreement, insurance coverage will be provided to foreign banks involved in export financing by SACE and Coface agencies.

The exports are financed in the amount equal to 80% of their cost, with Vnesheconombank’s commitment accounting for one third of the total amount of financing. In 2013, Vnesheconombank already allocated USD 6.4 mn to finance exports of Sukhoi Superjet 100 to the Mexican United States.

The most ambitious projects of Vnesheconombank related to the financing of Sukhoi Superjet 100 aircraft exports include the loan agreement with the Indonesian Ministry of Finance for USD 394.3 mn in favour of the Indonesian party.

“For us, the financing of Sukhoi Superjet 100 aircraft exports to Mexico and Indonesia is an important step towards a framework of financial support to exports within Vnesheconombank Group. This is a priority area for the Bank and we are happy to demonstrate both to Russian exporters and to foreign importers that we are committed to efficient cooperation.”

Alexander Ivanov,
Deputy Chairman Management Board Member Vnesheconombank

The mechanisms used by Vnesheconombank to finance the contracts for export of Sukhoi Superjet 100 airliners showed a fundamental breakthrough in the Bank’s financial policy as the Bank was able to offer foreign buyers and domestic sellers a broad range of financial instruments. They include loans and a guarantee package by Vnesheconombank, insurance coverage of export risks provided by EXIAR and lease products of VEB-LEASING, the Bank’s subsidiary.

Operations of EXIAR on export insurance

Set up for this specific purpose in 2011 as an entity within Vnesheconombank Group, the Export Insurance Agency of Russia (EXIAR) today plays a key role in promoting the mechanisms for insurance support to Russian exports. EXIAR is the first export credit agency in the history of Russia.

As part of its operations, EXIAR:

  • provides insurance support to exports of Russian goods and services;
  • builds an advanced export financing framework secured with the Agency’s insurance coverage;
  • provides insurance support to outbound Russian investments;
  • supports export-oriented SMEs.

The Agency’s insurance coverage serves to secure Russian export loans against business and political risks and to protect outbound Russian investments against political risks. EXIAR’s customers include Russian exporters, including SME, and Russian and foreign lending institutions, banks and other financial organisations. In terms of sectoral support, EXIAR prioritises support to exports of innovative high-tech products.

Breakdown of insurance support to exports by EXIAR by sector in 2013

Support to Russian exports by Eximbank of Russia

Eximbank of Russia was established to implement the government policy seeking to support and encourage the national industrial exports, set up import-substitution businesses and assist in attracting investment in the Russian economy.

Under the Concept for Promoting Government Financial (Guarantee) Support to Industrial Exports in the Russian Federation, Eximbank of Russia acts as an agent of the Russian Government in providing government financial support to Russian exports and is responsible for addressing the following tasks:

  • implementing the government policy for guarantee support to Russian exports oriented at strengthening the competitive positions of Russian exporters in conventional markets of emerging and CIS countries;
  • conducting a uniform government policy under programmes for cooperation with international financial institutions to promote investment projects seeking to support industrial exports and aimed at upgrading the manufacturing capabilities of Russian exporters to supply high value added exportable products at later stages;
  • assisting Russian exporters in promoting their industrial products in relevant markets;
  • providing Russian exporters with access to long-term debt, including pre-export loans at the lowest market rates.
Breakdown of financial support to Russian exports by Eximbank of Russia by sector as of 31 December 2013

Below are the largest projects financially supported by Eximbank of Russia in 2013:


Project: Modernisation of Termogas Machala TPP in the Republic of Ecuador

A USD 195.2 mn loan agreement was signed in the Kremlin during the visit by Ecuadoran President Rafael Correa Delgado to Moscow in October 2013. The loan will be used to finance the modernisation of Termogas Machala thermal power plant in the Republic of Ecuador. Eximbank of Russia acted as the syndicate arranger, payment agent, security agent and a lender under the project.

Russian Inter RAO Export will provide the design, delivery, construction, installation and commissioning of an auxiliary gas turbine unit. The project will become the first Ecuadoran combined (steam and gas) cycle thermal power plant, while its installed capacity will grow by 170 MW to 300 MW. The project was awarded the Deal of the Year award by UK Trade Finance Magazine.


Project: AN-158 Aircraft Exports to Cuba

As an agent of the Russian Government, Eximbank of Russia provided sovereign guarantees for USD 82.6 mn under a loan deal for the exports of AN-158 aircraft to Cuba. Under the USD 75 mn loan agreement, in 2013 Cuban Aviaimport S. A. was delivered 3 aircraft on financial lease terms via Russian Ilyushin Finance Co.

The delivery of AN-158 passenger aircraft became the first project for support to export products made on international cooperation terms. The aircraft supplied under the project were manufactured in Ukraine and consist of Russia-made components by more than 60%.

Integration of OECD’s requirements to export support

In 2013, Vnesheconombank Group’s entities actively participated in implementation of OECD requirements to export support. Eximbank of Russia plays an important role in this process. Eximbank of Russia is a member of the Interdepartmental Working Group that prepares proposals to align Russian laws on exports support with OECD rules, and a member of OECD’s Working Party on Export Credits and Credit Guarantees that is charged with working out general approaches to government support for national exports.

EXIAR is also fully involved in this area as an institution intended to support export loans. In 2013, representatives of EXIAR took part in meetings of Russian interdepartmental working groups on implementation of OECD standards, including those dedicated to meeting the requirements to prevention of bribery of foreign officials and on environmental and social assessment of deals for government-supported export loans. At the international level, EXIAR participated in meetings of OECD’s Working Party on Export Credits and Credit Guarantees.

In 2013, Eximbank of Russia developed and implemented the Regulations on Combating Corruption/Bribery of Officials Related to the Review of Applications for Financial and/or Guarantee Support to Russian Exports Involving Sovereign Guarantees of the Russian Federation. The Regulations are based on OECD requirements. The Bank also launched a review of OECD requirements related to the environmental and social assessment of export projects financed against sovereign guarantees.

EXIAR approved its Procedure for Combating Bribery of Foreign Officials in EXIAR and launched the drafting of its corporate regulatory documents on the environmental and social assessment of government-supported export loans in line with OECD requirements.