July 03 2012
The Law on the Amendment of Certain Legislative Acts of the Russian Federation in order to Improve the Mechanism of Insurance of Export Credit and Investments against Entrepreneurial and Political Risks(1) amends a number of regulatory acts and improves the mechanism for insurance against such risk. It mandated Vnesheconombank, the bank for development and foreign economic affairs, to create an open joint-stock company to provide insurance services to exporters of Russian goods (including works and services) and investors outside Russia. The activity of the agency will not be subject to licensing.
On October 13 2011 the Federal Tax Service registered the Agency for Export Credits and Investment Insurance with a charter capital of Rb30 billion. The agency is headed by Petr Fradkov, the deputy chairman of Vnesheconombank and the son of former prime minister Mikhail Fradkov. Its main aim is to support Russian exports by providing:
The agency will:
The agency's services will be available to:
Once the insurance premium has been deposited in the designated bank account within the established time limit, the relevant party is released from administrative liability for unapplied receipts (provided that the insurance indemnity is not below the established amount).
According to the Ministry of Economic Development and Trade, the agency will be able to cover export supplies to a value of up to $20 billion a year. The ministry plans to achieve this target by the end of 2012.
At the end of November 2011 the government took another step towards the development of this type of insurance when it issued the Decree on the Procedure of Export Credit and Investment Insurance against Entrepreneurial and Political Risks, approving the Rules for Export Credit Insurance which:
The decree also sets out:
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