Russian Export Center REC

Company

State and social structures
Since 2015
Russia
Central Federal District of the Russian Federation
Moscow
123610, Krasnopresnenskaya nab. 12, entrance 9

Top managers:
Sklyar Alexey Valentinovich
Nikishina Veronika Olegovna

Owners:
ВЭБ.РФ (formerly Vnesheconombank)

Assets

Owners

+ Russian Export Center (REC)

+ Government of the Russian Federation

Objectives and objectives of REC

Russian Export Center JSC is a state export support institute created in the structure of Vnesheconombank with the support of the Government of the Russian Federation. On June 29, 2015, President of the Russian Federation Vladimir Putin signed the Federal Law on Appropriate Amendments to Federal Law No. 82-FZ of May 17, 2007 "On the Development Bank."

Interaction Model

The Center is a "single window" for working with exporters in the field of financial and non-financial support measures, including interaction with relevant ministries and departments. December 10, 2015 The Russian Export Center became the sole shareholder of EKSAR JSC.

The center is formed in the form of a specialized client service for exporters with competence in the field of export activities, including export advice, assistance in organizing export activities, and support for export procedures.

The activities of the Center are focused, among other things, on accompanying the requests of exporters when working with relevant ministries and departments, state services.

As part of the implementation of non-financial support functions, the Center is focused on coordinating the activities of trade missions of the Russian Federation abroad in support of export projects.

REC interaction model

History of development and activities

2020

Go Under Control ВЭБ.РФ

On November 23, 2020, Russian Prime Minister Mikhail Mishustin announced a large-scale optimization of development institutions. Some of them will come under the control of the state corporation ВЭБ.РФ. More details here.

Open free access to SAP Ariba for Russian exporters with SAP

On April 9, 2020, SAP CIS announced that access to the SAP Ariba business network until May 10, 2020 will be free for Russian exporters. Thanks to the cooperation between REC and SAP for April 2020, more than 2,000 Russian exporters have already been registered in the SAP Ariba system. More details here.

Appointment of Veronica Nikishina as CEO

On February 6, 2020 it became known that Veronika Nikishina who was earlier holding a position of the minister of the torgovleevraziysky economic commission is appointed the CEO of the Russian Export Center (REC). More details here.

Nigeria Steel Plant Rehabilitation Plan

According to Minister of Mining and Metallurgy Development of Nigeria Olamilekan Adegbite in January 2019, a memorandum of understanding should be signed by the end of January to finance the restoration of the Ajaokuta Steel metallurgical plant, almost built in 1979, but never put into operation.

The project cost will be $1.46 billion. Of these, the African Export-Import Bank (Afreximbank) should provide $1 billion, and the Russian Export Center should provide the remaining $460 million.

The restoration of the Ajaokuta Steel plant, which was built by Soviet specialists, was discussed at the Russia Africa"-" summit in October 2019. It is assumed that the Russian group of companies will be engaged in the implementation of the project. " MetProm The period of work is estimated at 2-3 years. After the launch of the enterprise, it will be managed by Russian representatives.

The Nigerian Government, for its part, promises to solve all the problems with providing the enterprise with raw materials, especially iron ore. According to Minister Adegbite, the launch of Ajaokuta Steel will play a crucial role in the development of the country's economy, since "industrialization requires the presence of its own steel production."

2018

Agreement on the creation of the Russian Center for Digital Innovation in the UAE

In October 2018, the Russian Export Center (REC) signed an agreement with the Dubai Internet City Free Economic Zone and Al Around Group to create the Russian Center for Digital Innovation and Information Technology (RCTC) in the United Arab Emirates (UAE).

Dubai Internet City is one of the free economic zones deployed in the UAE by Tecom Investments and aimed at attracting high-tech organizations. Residents of the zone receive tax benefits, relief in terms of requirements for foreign ownership.

RCCI will become a resident of Dubai Internet City, and Al Around Group will serve as its operator, explained the head of the REC project to support high-tech exports, Marat Korovaev. The future management of the RCTC has not yet been determined.

RCCI will provide marketing support to Russian companies in promoting their products in the Middle East markets. REC also managed to agree that residents of the RCTC, in addition to the benefits that residents of Dubai Internet City have, will receive certain benefits in terms of recruitment rules, Korovaev added.

The company Infowatch, which has been operating a representative office in the UAE for a year, has taken active work in creating the RCCI.

author = Christina Tancyura, Managing Director of Infowatch for the Middle East.
Russian companies have a problem with self-esteem and marketing. We know how to make high-quality products, but we do not know how to present them and do it alone. While the Middle East needs comprehensive solutions. The idea of creating a RCCI appeared quite a long time ago. The goal of the center is to create comprehensive solutions, both software and hardwood, and promote them in the Middle East, using support from both REC and a local partner represented by Al Around Group^[1].

$800 million in financial support to exporters of industrial and household chemicals

REC provided financial support for the export of Russian industrial and household chemicals in the amount of $800 million, at the moment REC has 14 projects in the work, the amount of support of which is estimated at $700 million. This was announced in March 2018 by the managing director for client work of REC Nikita Gusakov at the International Scientific and Expert Forum "Growth Resources. Chemistry for Life: State and Business, "which was held in Moscow on March 27-28, 2018.

The volume of export of the chemical industry supported by REC amounted to more than $4.8 billion, the main share was fertilizer. "2017 was a successful year for export supplies. Russian exports increased by 25% in 2017 to $357.1 billion. Non-primary non-energy exports, including the chemical industry, grew by 22.5% to $133.7 billion over the same period. Over the past 14 months, continued export growth has been recorded. The President of the Russian Federation has set an ambitious task: to bring the NOE to $250 billion. The United States by 2024, that is, to almost double the volume., and we understand that the chemical industry has great potential and is one of the main drivers, "commented Nikita Gusakov

The geography of exports of industrial and household chemicals is expanding primarily to the CIS countries, as well as Mongolia and the states of the Middle East. The most popular support tool used by REC customers from the household and industrial chemistry industry is export contract insurance. Sales traditionally go with a deferred payment, so companies are interested in insuring the risks of non-payment.

Lending to exporters for the execution of export contracts and buyers is also in demand. Thanks to the joint program with the Ministry of Industry and Trade of Russia, REC provides preferential rates for financing, there is demand both from retail chains, especially in the CIS countries, and from other buyers of Russian products.

Among other programs to support REC are financing export-oriented industries, compensating for certification costs (up to 90%) and homologation, subsidizing transportation. Among the non-financial support measures is a program for promoting to foreign markets, implemented jointly with the Ministry of Industry and Trade of Russia. Financing of participation in exhibition activities abroad is carried out in accordance with the Decree of the Government of Russia No. 488. The REC website contains a list of events that are held with the support of the state and may be of interest to companies in the chemical industry.

Participation of 38 medical equipment developers at Arab Health

The Russian exposition, first so widely presented at the Arab Health exhibition in January 2018, aroused significant interest among foreign companies. During the two days of the exhibition, 122 meetings of Russian companies with potential foreign partners from the Middle East, North and East Africa on the MatchMaking system were held at the Russian exposition. On the premises of the Russian exposition, presentations of the activities of Russian companies for participants and guests of the exhibition took place. Based on the results of the negotiations, a number of contracts with foreign buyers are expected to be signed.

2017

Agreement with ARPE

The Association of Electronics Developers and Manufacturers (ARPE) and JSC Russian Export Center (REC) concluded an agreement in September 2017 on cooperation in the development and support of exports of high-tech products and services. The association aims to multiply the number of exporters and export volumes of Russian electronics by exchanging best practices and reducing initial stage barriers. The strategic goal is a tenfold increase in the share of Russian electronics in the world market by 2035: from negligible 0.3% to a noticeable 3%. Having expert knowledge, wide powers and extensive experience in the field of developing the export potential of Russian companies, REC will provide the Association's member companies with comprehensive assistance in the process of entering foreign markets.

Agreement with Angstrom Group of Companies

At the St. Petersburg International Economic Forum, Angstrom Group of Companies entered into a cooperation agreement with Russian Export Center JSC. The document was signed by the chairman of the board of directors of Angstrom Group of Companies Leonid Reiman and the general director of the export center Petr Fradkov.

The subject of the agreement is the expansion and deepening of partnerships for the development of the export activity of the enterprise.

During the cooperation, REC will contribute to the export of products to foreign markets in the main areas: power electronics, power management chips, consumer electronics.

Cooperation with Rostec

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The state corporation Rostec and the joint-stock company Russian Export Center (REC) signed a cooperation agreement in June 2017 to implement state a policy in the field of development and support for the export of high-tech products. On the part of Rostec, the agreement was signed by the General Director of the State Corporation, on the Sergey Chemezov part of the Russian Export Center - by the General Director of the REC. Peter Fradkov

The parties agreed to jointly and jointly implement measures to develop the export of high-tech products produced by Rostec organizations.

Within the framework of the agreement, Rostec and REC will organize an information exchange: Rostec will be responsible for informing holding companies and direct management organizations of Rostec about the activities and capabilities of REC, and also - provides REC with information on the implementation of measures related to the export of high-tech products and the development of international activities.

In turn, REC will provide information on the opportunities and prospects of foreign markets, as well as contribute to the search for foreign partners with further support for foreign economic activity. In particular, to assist in the processing of export contracts, individual export procedures, international adaptation of export products and advice on procedures for completing an export contract.

The REC will also provide financial assistance to Rostec organizations in the field of insurance support and provision of state guarantees, as well as assist in lending to foreign buyers of Russian products and foreign financial institutions.

Money to pay for the participation of IT companies in major foreign exhibitions

On April 24, 2017, the Government by its resolution approved the rules for providing subsidies from the federal budget to the Russian Export Center to finance the promotion of domestic high-tech products to foreign markets.

Companies interested in exporting their products can choose the exhibition in which they want to participate from the list on the REC website^[2].

Among the exhibitions of interest to IT companies, the list contains Mobile World Congress in San Francisco () USA and Barcelona (), Spain CeBIT in Hanover () Germany and Bangalore (), India International Consumer Electronics Show (CES) in Las Vegas (USA), a number of events in Dubai (UAE), San Paho, etc. Brazil

Up to 80% of the costs of participating in a large foreign exhibition can be compensated through the Russian Export Center

In total, the REC can spend 2.7 billion rubles in 2017-2018 to finance the participation of Russian companies in foreign exhibitions, but no more than 270 million for one event, Stanislav Shavrin, senior expert at the REC on IT exports, told TAdviser.

To small and medium-sized businesses, REC will compensate 80% of the costs of participating in the exhibition, to large companies - 50%.

In addition to IT, REC is ready to finance participation in exhibitions of companies engaged in agriculture, automotive, electronics, light and food industries, etc.

Platform for fan placement of goods on online trading platforms

On February 14, 2017, the Russian Export Center (REC) and SPSR Express signed a cooperation agreement, which implies the development of logistics solutions for Russian exports and the creation of a platform for fan placement of goods on online trading platforms around the world. The document was signed by the heads of companies - the head of the REC group Petr Fradkov and the general director of SPSR Express Vladimir Solodkin.

To increase sales of Russian goods and services in the online environment, the parties will assist Russian suppliers in registering, creating virtual stores and placing goods on world B2C and B2B online sites. In addition, the agreement provides for subsequent comprehensive support for Russian manufacturers. This includes issues of international adaptation of goods, patenting and protection of intellectual property, as well as the provision of marketing, analytical, credit guarantee and insurance support.

2016

Nikolay Nikiforov: five factors of increasing high-tech exports

In November, the Minister of Communications and Mass Communications of the Russian Federation Nikolai Nikiforov named the following factors that can contribute to the growth of high-tech exports from Russia:

increasing the attractiveness of Russian jurisdiction to companies,
export financing,
simplification of a number of financial and legal procedures,
creation of a single umbrella brand for Russian products abroad,
the formation of new markets in modern geopolitical conditions.

Agreement with the Ministry of Communications

In September, the Minister of Communications and Mass Communications of the Russian Federation Nikolai Nikiforov and the General Director of the joint-stock company Russian Export Center (REC) Petr Fradkov signed an agreement on export support. The goal of the agreement is to increase the volume of Russian exports of products and services of the information and communication technology industry, as well as the number of export-oriented enterprises.

To create favorable conditions and expand the export activities of Russian IT companies, cooperation will be organized to improve the legislation of the Russian Federation in the field of communications and IT, promote a platform of cross-border confidence space to support the export of Russian IT products, and develop special tools for financial and non-financial support of IT companies. The parties intend to assist in the development and creation of information and search systems that contribute to the activities of export-oriented IT enterprises, participate in the activities of intergovernmental commissions on trade, economic and scientific and technical cooperation, as well as other activities aimed at supporting Russian exports of IT products and services.

Under the terms of the agreement, REC will also analyze and summarize the practice of exporting IT products and services, study advanced foreign experience, and develop proposals for improving the service of international mail. Also, proposals will be prepared for the development of regional informatization in order to improve the business conditions of export-oriented IT companies. Relevant proposals will be sent to the Ministry of Communications of Russia.

Roselectronics will export through the Russian Export Center

Roselectronika Holding (part of Rostec State Corporation) intends to attract the organizational and financial capabilities of Russian Export Center JSC (REC) to develop its foreign economic activities. The parties concluded an agreement in the summer of 2016, which involves the development of cooperation in order to increase the efficiency of the export activities of the state holding, in particular, the organization of its financing and insurance, as well as the promotion of Roselectronics products in foreign markets.

The agreement is a framework document and provides for the possibility of concluding substantive agreements between the parties on the provision of consulting services to REC, assistance in lending, insurance support and the provision of state guarantees when forming Roselectroniki export projects.

In 2015, the export volume of the Roselectronics holding amounted to about $120 million, exceeding the level of the previous year by 40%.

Investment elevator

The Investment Elevator mechanism was launched in April 2016 as part of supporting high-tech projects of small and medium-sized enterprises related to non-primary exports. It provides for the involvement of leading development institutions (SME Corporation, Industrial Development Fund, RDIF and the group of companies of the Russian Export Center (REC, EXAR and Roseximbank)) in activities to provide financial support to SMEs at various stages of their life cycle. Within the framework of the Investment Elevator mechanism, small and medium-sized companies can count on both financial (equity and debt financing, guarantees, export lending and insurance) and administrative and consulting support for projects, including when promoting companies and their products in targeted international markets. See Investment Elevator for details .