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.