ECAs slam the door on Russia

(Global Trade Review, London, 9 March 2022) Export credit agencies and trade credit insurers have hurriedly axed coverage for Russia and Belarus as the deepening conflict and western sanctions interrupt trade and major projects. At least 10 ECAs have stopped or limited coverage for the two countries since late February, when Russian President Vladimir Putin launched an invasion of Ukraine. Many ECAs have also suspended coverage of Ukraine. ECA exposures to Russia range from the relatively modest A$3mn of Export Finance Australia to the substantial €1.7bn on the books of Austria’s OeKB. Other exposures disclosed to GTR or in annual reports include €1bn for Finnvera, Finland’s ECA; US$453mn for Sweden’s EKN; US$428mn for the US Export-Import Bank (US Exim); and €170mn for Poland’s Kuke. ECAs which may have significant exposures but did not respond to questions or publicly disclose exposures include those in France, Italy, Japan and Spain. UK Export Finance (UKEF) has £49.9mn in remaining exposure to buyers in Russia. UKEF declined to respond on the record but GTR understands the agency’s total exposure relating to Russia is just over £100mn.