Finnvera continues to grant export credit guarantees for exports to Russia – the exposure trend is being monitored

Finnvera grants export credit guarantees for Finnish exporters’ transactions in Russia. The exposure trend and repayment times are monitored closely.

The country classification determined by the OECD member countries for Russia has been downgraded from 3/7 to 4/7. The country classification is based on an assessment of the country’s economic situation and ability to meet its financial obligations. A downgraded country class raises export companies’ guarantee premiums. Risks in export credit guarantee operations have increased, for instance, because it has become more difficult for Russian banks and enterprises to obtain financing from international markets.

Finnvera will continue to grant export credit guarantees for exports to Russia, but the Russian counterparty's credit standing is examined increasingly carefully. Before a guarantee decision is made, it is ensured that financing has been arranged for the exports, the bank providing the financing is known, and the current sanctions do not restrict the arrangement of financing or the granting of the guarantee. 

As part of risk management, Finnvera will monitor the development of outstanding commitments. At the end of 2014, Russia accounted for 7 per cent of all outstanding commitments. Demand for export credit guarantees for transactions in Russia increased in early 2015. The trend in Finnvera’s exposure vis-à-vis Russia will also be taken into account in the overall assessment of large projects worth several tens of millions euros.

“Finnvera monitors the exposure trend and the repayment times of credits. Since a large share of the current commitments for Russia will be paid back within the next few years, there will constantly be room for new commitments,” says Pauli Heikkilä, CEO of Finnvera.

Additional information:
Pauli Heikkilä, Chief Executive Officer, tel. +358 29 460 2400
Topi Vesteri, Executive Vice President, tel. +358 29 460 2676