On 20 May 2011, the Duma adopted in the first reading a draft law to create an agency under Vnesheconombank to insure the commercial and political risks of Russian exporters (the "Draft Law on Insurance Risks").
Specifically, the Draft Law on Insurance Risks envisages:
- Vnesheconombank establishing a subsidiary in the form of an open joint-stock company to function as the insurer of export credits and investments against commercial and political risks;
- the Government establishing the procedure to perform this task;
- that the insurance of export credits and investments against commercial and political risks will no longer fall within the scope of application of Federal Law No. 4015-1 "On Organising Insurance Operations in the Russian Federation", dated 27 November 2007; and
- that this type of insurance will be exempted from VAT.
The establishment of the planned agency is expected to result in Russian exporters receiving more favourable loan terms, as well as stimulating the development of export financing in Russia.
[Draft Law No. 521918-5 "On Amending Separate Legislative Acts of the Russian Federation in order to Improve the Insurance of Export Credits and Investments against Commercial and Political Risks"]