During an official Russian state visit, Atradius Dutch State Business (Atradius DSB) has signed a cooperation agreement with Sberbank in the presence of Russia’s President Putin and Holland’s Prime Minister Balkenende. The purpose of the agreement is to create a framework between Russia’s largest bank and Atradius DSB – the export credit facility of the Dutch state.
The cooperation ensures that Sberbank will guarantee the risks which Dutch exporters have on Russian buyers. The closer cooperation between Atradius DSB and Sberbank will further support the spectacular increase in Dutch exports to Russia.
At Atradius DSB Dutch exporters of capital goods can insure themselves against commercial and political mid and long-term risks in case a buyer does not pay. Atradius DSB offers export credit insurance on behalf of the Dutch ministry of finance when a private reinsurer cannot cover the risk.
In that case the Dutch government supports a positive environment for exports and for foreign investment of Dutch companies. By November 2005 Atradius DSB had received 294 requests for credit export insurance, of which 72 are related to export to Russia. This is 25% of all requests. Compared to previous years this is a spectacular increase: in 2004 the percentage of requests for Russia were 14 % of all requests and in 2003 this was 11%. The export to Russia is primarily oil and gas related equipment, and machinery for the food processing industry such as slaughter equipment and packaging machines.
Atradius DSB expects this year in total to receive 30% more requests for export credit insurance for all emerging markets, compared to last year. This spectacular increase for mid-term export credit insurance is, relatively speaking, higher than growth of the Dutch export to all markets. “It seems that constructors of capital goods and large building projects for mid-term insurance of risk payments appreciate our added value,” says Johan Schrijver, director of Atradius Dutch Business.
Atradius insures short-term payments, up to 12 months, at its commercial company. Also within this business Atradius, the largest credit insurer in The Netherlands – sees an increase in the insured export to Russia. Worldwide, Atradius insures €
1bn of trade on Russia up to the third quarter of 2005. Of this, Sweden comes first with €
442mn insured exports, followed by the US with €
270mn and Germany with €
106mn. The Netherlands insures €
In comparison, in 2004 Atradius insured as a private credit insurer only €
400mn and in 2001 €
87m, states Anno Kamphuis, member of the management board of Atradius.