Financial support must help agricultural exporters

18 march 2016

At an event organized by the Analytical Center in conjunction with the Russian Exports and Imports Bank (Roseximbank), experts discussed financial support of Russian agricultural exporters and measures to improve export financing for agricultural companies.

According to Artem Azarchenkov, Deputy Chair of the Management Board at Roseximbank JSC, in 2015 the bank discovered that the traditional banking products cannot be used in some sectors of the economy. “Features of the agricultural exports, both in terms of contracting conditions, and pricing, justify the need to develop a specialized financing program of export transactions. Taking into account its own experience in creation of sectoral programs, the Eximbank plans to create such conditions for  financing to meet the requirements of exporters and to provide competitive advantage in foreign markets”, - he said.

Last year, the Russian agricultural sector expanded the production of a long range of products, noted the Head of the Department for International Cooperation of the Analytical Center Denis Ershov. “Further growth of agricultural exports can be achieved both by exporting to more countries and regions such as China, the Middle East, Central and Northern Africa, and Asia Pacific and by expanding the range of products being exported”, the expert noted. “However, business will not be able to achieve significant growth in exports without systemic state support.” Measures must include lower barriers, marketing support for exports and financial support for export transactions, the expert believes. Today there are some 60 measures available through which the government supports agricultural producers. However, no special emphasis is put on financial support of agricultural exporters and the measures that are available are not systemic. In the meantime, easy access to financial and insurance projects is increasingly becoming a significant competitive advantage for exporters, Mr. Ershov noted.

Representatives of the leading Russian exporting companies, Roseximbank JSC, EKSAR OJSC, Russian Exports Center JSC as well as independent experts took part in the event.