Cover of exports to Russia with Export Credit Guarantees is booming. Since 2005 Russia has lead the field of the ten countries with the highest cover volumes. During the first eight months of the 2008 the Federal Government covered transactions with Russia worth 1.5 billion euros.

"At the end of 2008, Russia will again be at the top of the table of the most important markets", explains Hans Janus, Member of the Board of Management of Euler Hermes Kreditversicherungs-AG. "No other Export Credit Agency in the world has signed business with Russia that is roughly comparable."

"Although Russia's country risk has been rated significantly more favourable in recent years and the insurance premium was reduced, exporters and banks continue to see a considerable risk for the repayment of their credits and loans," explains Janus the brisk demand.

In connection with export of plant and equipment to Russia, the funding forms part of the overall package and is frequently a decisive factor when it comes to placing an order. Russian banks are often faced with difficulties in refinancing in particular long-term loans in the aftermath of the credit crunch. "In many cases only Hermes cover will make it possible to secure long-term financing for export deals", adds Janus. This also applies to deals with Russian companies whose credit standing is good because the number of transactions insured with an export credit guarantee on corporate risk basis, i.e. on the basis of the Russian buyer's creditworthiness, is steadily increasing.

The information event "Industrietag Russland" at Dresden on 17 September 2008 will bring together business leaders, business association representatives and politicians. At the forum dealing with financing, which will be chaired by Hans Janus, Member of the Board of Management of Euler Hermes Kreditversicherungs-AG, the financing and insurance with Hermes Cover as success factors for business with Russia will be discussed.

Export Credit Guarantees (Hermes Cover) are the most important instrument of the state export promotion scheme in Germany. The protection against bad debt losses for commercial and political reasons continues to be a central issue especially in connection with exports to difficult and risky markets.

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