Reacting to reports from various media outlets, the Export Credit Guarantee Corporation of India (ECGC) has released a statement clarifying that the coverage on export transactions to Russia has not been withdrawn.
It was reported by multiple media sources that ECGC had taken back the cover on the export transactions to Russia through a circular on the 25th of February 2022.
With respect to the current situation, the Export Credit Guarantee Corporation had undertaken a review of the country risk rating of Russia as per its existing underwriting guidelines. In consideration of the assessment, the cover category of Russia has been downgraded from Open Cover to Restricted Cover Category – I (RCC-I) with effect from the 25th of February 2022, for which revolving limits (which is generally valid for a year) are approved categorically on the case-to-case basis.
The statement further said that the change has been brought in to make certain that the ECGC is able to evaluate and keep an eye on the risks covered under its export credit insurance policies so that suitable risk mitigation measures can be adopted.
The steps taken will further help the Indian exporters and banks in evaluating the payment fulfillment probability against the exports from buyers and banks in Russia.
The Export Credit Guarantee Corporation has advised the exporters to contact their respective servicing branch of Export Credit Guarantee Corporation for cover on export shipments to Russia.
The statement further said that the ECGC is constantly monitoring the situation and will undertake the further review of the underwriting policy, if the need be, based on future developments.
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