RUSSIAN BANK PARTNER PROGRAM YIELDS $100 MILLION IN EXPORT SALES FOR U.S. BUSINESSES
FOR IMMEDIATE RELEASE February 26, 2003
Andrew Yarrow (202) 565-3200
The Export-Import Bank of the United States (Ex-Im Bank) is significantly increasing its support for U.S. exports to Russia, in large part as a result of innovative partnerships with a variety of Russian financial institutions. With today's approval of a $10 million credit guarantee facility for Investment Banking Group Nikoil, expected to be used to support purchase of U.S. agricultural, power-sector, and other goods and services, Ex-Im Bank has supported approximately $100 million in U.S. exports to Russia during the last few months.
Russia is a vital market for U.S. exporters - a fact that has been recognized by the President's Trade Promotion Coordinating Committee, which identified it as one of six key markets to focus on this year, said Philip Merrill, chairman of Ex-Im Bank. Ex-Im Bank can be instrumental in helping U.S. businesses win sales in Russia through our innovative financing and partnership programs.
Earlier this month, Ex-Im Bank also approved credit guarantee facilities with two of Russia's largest banks. Vneshtorgbank received a $50 million facility to support expected Russian purchases of various types of capital equipment and services. Sberbank received a $10 million facility to support Russian purchases of Deere equipment.
In January, Ex-Im Bank authorized $10 million in special delegated authority for Probusiness Bank that will support U.S. exports by Deere & Company in the agricultural sector. In September, Ex-Im Bank provided a $4 million guarantee to Bank Avangard to help Russian buyers source oil-distillation equipment from Tyler Petrofac Inc., of Tyler, Texas.
Ex-Im Bank also approved last month the first transaction under a separate authorization with DeltaLeasing, one of Russia's most successful leasing companies, to establish a $4 million credit facility to export capital equipment to small and medium-sized Russian businesses. This transaction provided a $250,000 guarantee for the purchase of construction equipment from Clark Equipment Company of Gwinner, N.D. and Vermeer Manufacturing Company of Pella, Iowa. The authorization with DeltaLeasing resulted from a memorandum of understanding signed by Ex-Im Bank Director Vanessa Weaver and DeltaLeasing's President Nicolas Zinoviev in Moscow in October 2001 during a trade mission led by U.S. Secretary of Commerce Donald Evans.
In the past five years, Ex-Im Bank has authorized more than $1 billion in export financing to support sales of U.S. goods and services to Russia.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing guarantees, insurance, and loans. In fiscal year 2002, Ex-Im Bank supported nearly $13 billion of U.S. exports worldwide.