NEW DELHI: The Export Credit Guarantee Corporation of India (ECGC) on Monday clarified that the coverage on export transactions to Russia has not been withdrawn. It has been mentioned in various media reports that ECGC has withdrawn its cover on the export transactions to Russia vide its circular dated February 25, 2022; this is factually incorrect, the Ministry of Commerce and Industry stated in a press release.
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, with effect from February 25, 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.
ECGC continues to monitor the situation and further review of the underwriting policy will be undertaken based on future developments, the statement said.