Government-owned ECGC on Monday said it has amended the insurance cover category for Indian exports to Russia, allowing revolving limits on a case-by-case basis amid the ongoing conflict between Russia and Ukraine. Is.
The Export Credit Guarantee Corporation (ECGC) said in a statement that “based on the near-term commercial outlook, it has been decided to revise Russia’s country-risk classification under short-term and medium and long-term as of February 25.” Revising its underwriting policy on Russia, ECGC has now moved that country to Restricted Cover Category (RCC-I) from the earlier ‘Open Cover’ category.
Open cover categories enable policyholders to get cover on a more generous basis. In a press release, the corporation clarified that coverage on exports to Russia was not withdrawn.
“In view of the prevailing situation, ECGC has reviewed the country risk rating of Russia as per its extant underwriting policy. Accordingly, with effect from February 25, 2022, Russia’s cover category has been revised from Open Cover to RCC. -I for which The revolving limit (normally valid for one year) is approved exclusively on a case by case basis,” it said.
It further clarified that this change was made to ensure that the ECGC is able to assess and monitor the risks covered under its export credit insurance policies and take appropriate risk mitigation measures.
This measure, it said, will enable exporters and banks in India to assess the prospects of receiving export payments from buyers and/or banks in Russia.
“Customers are appropriately advised to contact ECGC’s own servicing branch for cover on shipments to Russia. ECGC continues to monitor the situation and the underwriting policy will be further reviewed based on future developments.”
India’s exports to Russia stood at $2.65 billion in 2020-21. Exports to Ukraine during the same period amounted to $451 million.
,