Ex-Im Bank and Sberbank Reach $1 Billion Agreement to Increase U.S. Exports and Trade with Russia
June 21, 2012
(Ex-Im Bank)
ST. PETERSBURG, RUSSIA - The Export-Import Bank of the United States (Ex-Im
Bank) and Sberbank of Russia, the largest financial institution in Russia and
the CIS, today signed a $1 billion Memorandum of Understanding (MOU) to
facilitate increasing U.S. exports of goods and services to Russia and other
countries in which Sberbank operates and Ex-Im Bank programs are available.
Ex-Im Bank Chairman and President Fred P. Hochberg and Herman Gref, Chief
Executive Officer and Chairman of the Board of Sberbank signed the Memorandum of
Understanding. The signing took place during the St. Petersburg International
Economic Forum (SPIEF), which both are attending.
Chairman Hochberg said, "This MOU begins the process of joint cooperation
between Ex-Im and Sberbank. We believe there are tremendous opportunities for
U.S. exporters to sell into these markets. We look forward to working with
Sberbank to make sure U.S. companies can provide Russia with the best goods and
services available to meet the growing economic opportunities in Russia and
other CIS countries."
Sberbank's Chairman Herman Gref underlined, "It's the first time that Sberbank
has signed such a massive agreement for cooperation with the Ex-Im Bank, aimed
at tapping the enormous potential that exists for U.S.-Russia trade and
investment. This MOU opens new horizons for dynamic growth of trade, economic
and investment cooperation between Russia, CIS and USA. We see great
opportunities, especially for the aviation finance and leasing sector, and also
for infrastructure and energy sectors, including both conventional and renewable
energy."
While the agreement is available to support sales in all business sectors for
which Ex-Im Bank export-financing support is available, Ex-Im sees great
potential for U.S. companies is concentrated in aviation, infrastructure, and
energy, including both conventional and renewable energy.
According to the terms of the agreement, Ex-Im and Sberbank intend to support up
to $1 billion in U.S. exports to buyers in Russia and other target countries
through 2014. And Ex-Im will consider increasing the amount of financing support
should demand exceed $1 billion.
Ex-Im Bank exposure in Russia at the end of Fiscal Year 2011 (September 30,
2011) was approximately $315 million, of which $117 million was authorized in FY
2011.
Ex-Im Bank intends to consider providing direct, medium- and long-term financing
to Sberbank, and guarantees and export credit insurance to third parties lending
to finance U.S. export transactions. Financing could be provided in the form of
credit guarantee facilities, specific transaction financing, supplier credits,
and guarantees.
In support of the agreement, both Ex-Im and Sberbank have pledged to undertake
individual or joint marketing activities, and to enhance business relationships
between executives and middle management levels. They also intend to hold joint
training and other initiatives to foster greater understanding of each other's
programs.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S.
jobs by filling gaps in private export financing at no cost to American
taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9
billion above the cost of operations. The Bank provides a variety of financing
mechanisms, including working capital guarantees, export-credit insurance, and
financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an
all-time Ex-Im record. This total includes more than $6 billion directly
supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's
total authorizations are supporting an estimated $41 billion in U.S. export
sales and approximately 290,000 American jobs in communities across the country.
For more information, visit www.exim.gov.
About Sberbank
Sberbank is the largest bank of Russia and CIS that holds about 27% of the
Russian banking assets and employs nearly 240,000 people. The Central Bank of
Russian Federation is the founder and major shareholder of Sberbank, owning
57.6% of its issued outstanding shares. Other shares are held by more than
245,000 individual and institutional investors. The Bank has one of the largest
networks in Russia: 17 territorial banks, about 19,000 branches as well as
subsidiaries in Kazakhstan, Ukraine and Belarus, a branch in India,
representative offices in Germany and China. With the acquisition of Volksbank
International in 2012 Sberbank gained presence in nine Central and Eastern
European countries.
The bank holds the general banking license No.1481 issued by the Bank of Russia.
The official website is www.sberbank.ru
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.