Export Credit Line for Sberbank of Russia
Supporting Japanese Exports to Russia and Its Neighboring Countries
- Region: Europe
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on May 24 an agreement with Sberbank of Russia (Sberbank), the largest commercial bank in Russia, regarding the provision of an export credit line*1
totaling up to JPY30 billion (JBIC portion) to finance Japanese exports to Russia and its neighboring countries (including the countries of the Commonwealth of Independent States (CIS) and Central Asia). This agreement was entered into on the occasion of Japanese Prime Minister Shinzo Abe's participation in the annual International Economic Forum taking place in St. Petersburg on May 24-26, 2018.
The aim of this agreement is to offer an export credit line for Sberbank to provide medium and long-term financing in Japanese yen to local companies in Russia and its neighboring countries which will purchase machinery and equipment from Japanese exporters.
There will be potential business opportunities in Russia, particularly in the areas of infrastructure and energy. Under such situation, Japanese companies show interest in exporting to Russia and its neighboring countries as they view those countries as promising destinations. This export credit line will contribute to maintaining and increasing the international competitiveness of Japanese industries by promoting Japanese exports to Russia and its neighboring countries.
As Japan's policy-based financial institution, JBIC, in collaboration with local banks in foreign countries, will continue to provide financial support to assist Japanese companies in expanding their business to Russia and its neighboring countries, by drawing on its various financial instruments for structuring projects and by performing its risk-assuming function.
An export credit line is a form of export credit in which JBIC offers credit lines up to a certain amount for foreign banks or corporations which plan to purchase machinery, equipment and associated services from Japan.