OREANDA-NEWS. April 18, 2013. VTB Bank and Russia’s Export Insurance Agency signed a strategic cooperation agreement. The document was signed by VTB Bank President and Chairman of the Management Board Andrey Kostin and EXIAR Chief Executive Officer Petr Fradkov.

Under the agreement, the partners will provide financial support and insurance to Russian exporters totalling at least RUB 100 billion.

VTB and EXIAR have agreed to finance export deals of Russia’s leading suppliers of high-tech products, with the amounts extended to be secured by the Agency. They will also develop project financing with regard to Russian companies operating abroad.

VTB will provide financing to foreign customers and their banks, issue pre-export financing and conduct export-import transactions, as well as finance deferred payment contracts. EXIAR will insure all the above transactions against commercial and political risks.

VTB and EXIAR will also provide financial support and insurance to Russian SMEs to promote their high-tech products outside Russia.

“VTB is the first Russian bank to establish a long-term partnership with the Export Insurance Agency,” Mr Kostin said. “This reflects the vast potential of our cooperation as well as recognition of VTB’s unique capabilities in implementing the government programme to support and stimulate exports. This partnership with EXIAR will help the bank expand the market for its trade finance and export deals to emerging economies, which are often prone to political and economic risks but are important markets for Russian companies’ products.”

“Cooperation with VTB is an important stage in creating a modern export support system in Russia, secured by EXIAR,” Mr Fradkov said. “This is a clear signal to Russian banks that they can benefit from developing export financing as a separate business, which will also promote Russian exports in foreign markets.”