Circular No. ES/255/2021-22 01st March, 2022
To: Members of the Council
Sub: Coverage on export transactions to Russia NOT withdrawn: ECGC
The Council is in receipt of a communication from ECGC clarifying that the coverage on export transactions to Russia has not been withdrawn. A Press Release dated 28th February, 2022 in this regard has been issued by the Ministry of Commerce & Industry.
Various media reports have reported that Export Credit Guarantee Corporation of India (ECGC) has withdrawn its cover on the export transactions to Russia. Accordingly, ECGC has clarified vide its Press Release dated 28.02.2022; that this report is factually incorrect.
Extracts of the Press Release by ECGC are as follows –
- It is clarified that the coverage on export transactions to Russia has not been withdrawn by ECGC.
- In view of the prevailing situation, ECGC carried out a review of the country risk rating of Russia as per its extant underwriting policy.
- Accordingly, w.e.f. 25th February, 2022, the cover category of Russia has been modified from Open Cover to Restricted Cover Category – I (RCC-I) for which revolving limits (normally valid for a year) are approved specifically on a case-to-case basis.
- It is further clarified that this change has been made to ensure that ECGC is able to assess and monitor the risks covered under its export credit insurance policies and to place appropriate risk mitigation measures.
- The above measure will also enable the exporters/ banks in India in assessing the export payment realization prospects from buyers and/or banks in Russia.
- The customers have been suitably advised to contact their servicing branch of ECGC for cover on shipments to Russia (Letters issued by ECGC Ltd. to (i) Exporters (ii) Scheduled Commercial Banks - excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs) are attached).
- ECGC continues to monitor the situation and further review of the underwriting policy will be undertaken based on future developments.
Members may kindly make a note of the above.