Strengthening insurance protection for Russian exporters: a new stage in the development of foreign economic activity

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Russian exporters will soon receive more reliable insurance protection in foreign markets.  On the instructions of President Vladimir Putin, the Russian government, together with the Russian Export Centre (REC) and other interested organisations (including the Ministry of Finance and the Ministry of Industry and Trade), will develop additional measures to strengthen insurance for companies operating in high-risk markets.  The deadline for the project is 14 March 2025.  This decision is an important step to support Russian enterprises and stimulate foreign economic activity (FEA) in the context of geopolitical instability.

Why it is necessary

Today, Russian companies entering international markets face many challenges.  These are not only the traditional risks associated with logistics, currency fluctuations and non-payment by foreign partners.  In the context of sanctions pressure and aggravation of the geopolitical situation, the risks have increased significantly.  Unfriendly countries, the Middle East, South-East Asia and other regions with a high degree of political and economic instability pose serious threats to exporters, ranging from cargo confiscation to breach of contractual obligations.

The existing insurance mechanisms do not seem to fully cover all these risks, which makes many companies limit their activities or refuse to export to certain regions altogether.  This is why the initiative to strengthen insurance protection is timely and much needed.

Which companies will receive enhanced insurance

The target audience of the programme will be exporting companies, including export-oriented small and medium-sized enterprises (SMEs).  This includes a wide range of companies, from large industrial holdings to small manufacturing companies supplying their products abroad.

What measures will be taken

  • Expanding the list of insurance risks: Insurance policies can be supplemented with coverage for new, region-specific risks, e.g. political risks, sanctions-related risks, risks of property confiscation.
  • Increasing insurance coverage limits: This will allow exporters to feel more secure and take on larger projects.
  • Creation of new insurance products: It is possible that new insurance products specially adapted to the needs of exporters operating in high-risk regions will appear.
  • Subsidising insurance premiums: The state can partially compensate companies for insurance costs, thus reducing the financial burden on business.
  • Improvement of insurance claims settlement mechanisms: Insurance compensation procedures should become more transparent and prompt.

Significance of the initiative

Strengthening insurance protection for Russian exporters is not just a reaction to the current situation, but a strategically important step aimed at the long-term development of foreign trade.  Providing greater security for business will allow to:

  • Stimulate exports: Companies will be more willing to enter new, even high-risk markets.
  • Support Russian companies: This will help preserve jobs and ensure stable economic growth.
  • Diversify markets: Russia will be able to reduce its dependence on individual countries and regions.

The development and implementation of these measures will require a comprehensive approach and close co-operation between the government, insurance companies and exporters.  However, if successfully implemented, the initiative will be an important factor in strengthening Russia’s position in the global market.

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