Finnveras risk-taking in Russia is active. The responsibility for export credit operations in Russia amounted to 1,033 million Euro, whereof the quotes share is 360 million Euro.

Finnvera has granted 228 guarantees, and 80 new applications are pending. Russia is Finneras biggest liability country out of countries with political risk measured both in Euros and the number of granted guarantees.

During the global economic crisis, Finnvera has continued to provide guarantees for businesses in Russia.

At Finnvera, our customers can insure their export receivables with a short term of payment, and Finnera can also grant buyers credit guarantees in a medium-term of payment. The precondition for the guarantee to be granted requires that the buyer's creditworthiness is evaluated.

Because of problems in the Russian banking sector, the risk-taking in private banks, however, are limited. Some state banks are eligible because the Russian Government is expected to support these banks if necessary. In the case of private banks,

Government subsidies are uncertain, and therefore Finnvera makes the guarantee decision for the project or business after a careful analysis.

Out of the OECD countries that will be reported, Finland has the fifth largest export guarantee responsibility in Russia. Measured in domestic economic scale, the responsibility of Finland is approximately equal to that of Germany. For example, Sweden's equivalent responsibility in Russia is less than Finland.

One of Finnveras main goal is to promote growth and internationalization. On the other hand, risk-taking is always associated with risk of loss if the counterparty in the export business does not meet its obligations.

These objectives can only be achieved in a sustainable manner if the risks taken are as controlled as possible. For this reason, Finnvera often has to reject some projects if the risk of loss is great.


                                                                                      Cecilia Helland