finance
The Export Credit Guarantee Corporation of India (ECGC) has confirmed that coverage for export transactions to Russia has not been withdrawn, contrary to reports circulating in various media outlets. Notably, past reports indicated that ECGC had retracted its coverage through a circular dated 25.02.2022; however, this assertion is factually incorrect.
Due to the current geopolitical climate, ECGC has reassessed Russia’s country risk rating in alignment with its underwriting policy. As of 25.02.2022, the cover category for Russia has transitioned from Open Cover to Restricted Cover Category – I (RCC-I). This new category permits the approval of revolving limits, typically valid for one year, on a case-by-case basis.
This modification aims to enhance ECGC’s ability to evaluate and manage the risks associated with export credit insurance policies. It allows for the implementation of adequate risk mitigation strategies. Additionally, this adjustment assists Indian exporters and banks in analyzing the prospects for payment realization from Russian buyers and financial institutions.
Customers are encouraged to reach out to their servicing branch at ECGC to obtain coverage for shipments to Russia.
ECGC remains vigilant in monitoring the situation and will review its underwriting policy in response to future developments.
This proactive approach ensures that ECGC can continue to offer support and guidance to exporters navigating the complexities of trade with Russia.