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National institution for export support

The REC Group is a key organization responsible for the implementation of the Federal project and the formation of a national system for NRE support and development.
31 %
increase in the volume of support in 2018 as compared to 2017
82 %
increase in the number of exporters supported by the Group
9
foreign missions of the REC Group

Russian Export Center JSC (REC) is a state institution for non-resource export support. It offers Russian exporters a wide range of financial and non-financial support instruments. Cooperation with industry-specific ministries and departments, as well as with the key industry-specific commercial organizations allows REC to improve the export environment in Russia and mitigate the impact created by the existing barriers when carrying out foreign economic activities. Russian Export Center is part of Vnesheconombank Group.

REC’s legal status and its activities, in particular, the procedure for approval and the competencies of its executive bodies, are governed by Federal Law No. 164-FZ of 8 December 2003, Federal Law No. 208-FZ of 26 December 1995, other federal laws and legal regulations of the Russian Federation, as well as by its Charter. REC’s activities are governed by the provisions of the Civil Code of the Russian Federation, Federal Law No. 208-FZ of 26 December 1995, Federal Law No. 39-FZ “On the Securities Market” of 22 April 1996 and other federal laws by reference to specific provisions established by Federal Law No. 164-FZ of 8 December 2003.

The REC Group includes The Russian Agency for Export Credit and Investment Insurance JSC (“EXIAR JSC”) and State Specialized Russian Export-Import Bank JSC (“EXIMBANK OF RUSSIA”), which allows the Group to optimize resources and create effective business processes to deliver comprehensive services to the export-oriented companies.

1.1

REC strategy and key areas of development

REC strategy for 2019 and up to 2024 was approved by the Resolution of the Board of Directors of Russian Export Center JSC on 12 December 2018. The strategy was then aligned with Decree of the President of the Russian Federation No. 204 “On the National Goals and Strategic Objectives of the Development of the Russian Federation for the Period up to 2024” of 7 May 2018, as well as with the “International Cooperation and Export” national project (hereinafter the “National project”), which had been developed in support of the said Decree, and harmonized with the “Systemic Development Measures for International Cooperation and Export” federal project (hereinafter the “Federal project”).

It’s worth noting that the REC Group has actively participated in the development of the National project and the Federal projects that are within its area of responsibility. For example, in June 2018, REC and other companies within the Group’s structure did a great job in the “project workshop” format. The efforts were aimed at the development of the national project for the promotion of non-resource export in furtherance of the Vladimir Putin’s May Decrees, which sound as follows: increase annual non-resource export turnover to $250 billion, increase service exports, including education, healthcare, tourism, transport, to $100 billion, increase trade turnover between the Eurasian Economic Union members by 1.5 times. The work was carried out in close cooperation with the federal executive authorities and direct engagement of exporting companies, flagmen of national economy, representing key industries.

Strategy updating calls for the adjustment of the REC Group’s activities and the implementation of the following priority objectives to maximize the effect of support provided to the existing exporters and promote the appearance of the new ones:
  • Strengthen the function of the REC Group to create a “new export”, first of all, improve international competitiveness of the country's most important industrial enterprises and export accelerator to stimulate the increase of SME exporters in the constituent entities of the Russian Federation.
  • Create a single export network for export promotion, develop the regional and international networks through the involvement of Russian trade missions and export support centers. The network of REC’s foreign missions will be based on the REC’s own points of presence : liaison offices (own representative offices, export support groups under the trade missions or representative offices of VEB.RF), REC’s partner and agency networks. Export support centers within the regional network will integrated into REC’s single regional network.
  • Create a flexible line of financial products, including comprehensive pre-export, export and equity financing, leasing and long-term support measures, and create the standardized solutions to scale up SME support.
  • Update the product line consisting of non-financial products focusing on the search for partners and promotion channels, while also ensuring partial service monetization.
  • Carry out digital transformation of the REC Group to align the services offered to exporters with their needs, launch a one-stop-shop digital platform to improve the quality of interactions between the participants of foreign economic activities and state authorities.
  • Improve interaction with development institutions taking into account the coordination carried out by VEB.RF to improve the customer-oriented approach of development institutions, create a single register (pipeline) of export projects and a complementary product catalog, synchronize the customers’ processes.
Also, three main REC Group’s functions were updated to implement the above objectives:
  • Providing support within a single institution: providing financial (insurance, credit, guarantee and other) export support, providing non-financial support to exporters (search for partners, accelerator for exporters, investment consulting for export support, etc.).
  • Acting as an agent of the Government of the Russian Federation that provides basic government export support measures, in particular, as an agent that provides subsidies, participates in the performance of certain government functions and provides public services.
  • Coordination of the “Systemic Development Measures for International Cooperation and Export” Federal project, participation in improving and optimizing the regulatory framework, removing administrative barriers and developing the export environment.

As a result of the elaboration, the REC Group developed a reform blueprint, i.e. a passport of the “International Cooperation and Export” National project (programme), which was approved at the meeting of the Presidium of the Presidential Council of the Russian Federation for Strategic Development and National projects in September 2018. The National project involves five federal projects: “Industrial Export”, “Export of Agricultural Products”, “Services Export”, “International Trade Logistics”, “Systemic Development Measures for International Cooperation and Export.

Function 1: providing support as a single institution:

By providing a range of services as a single institution, the REC Group supplements the existing offers available in the market to maximize the export potential, in particular:

  • provides financial (credit, insurance, guarantee and other) support, supplements the market offer in those areas where there is a high demand for support from exporters. Therewith, financial support allows Russian exporters to create a competitive offer for foreign buyers;
  • provides non-financial support (including acceleration) to exporters and export-oriented enterprises, cooperates with market players, avoiding competition with them.

At the same time, non-financial support is aimed at supplementing the market offer in those areas where there is a high demand for support from exporters (initial stages of the export cycle according to the study) and where commercial companies do not provide services or provide them at high cost (for exporters).

All support measures are available for any category of potential recipients with due regard to their needs.

Function 2: acting as an agent:

Russian Export Center JSC acts as an agent of the Government of the Russian Federation allocating budgetary funds, participating in the performance of certain government functions and providing public services.

It is planned to develop and offer new types of subsidies for exporters in the future. REC will act as an agent that provides the main state export support measures.

Function 3: headquarter of the “Systemic Development Measures for International Cooperation and Exports” Federal project

“Systemic Development Measures for International Cooperation and Export” Federal project is a tool to consolidate state policy in the field of export support and development. It is aimed at removing internal regulatory and institutional limitations for export-oriented companies and solving six main objectives:

  • reduction of a number of administrative procedures and barriers in the field of international trade, in particular, cutting off the excessive requirements for export licensing and currency control;
  • organization of interaction of the participants of foreign economic activities and international trade agents with state authorities, in particular, with regulatory authorities, regional export support centers, trade missions of the Russian Federation abroad and other organizations via one-stop-shop digital platform provided by Russian Export Center JSC (by 2021);
  • development and modernization of the Russian laboratory base;
  • finalization of a flexible line of financial instruments to support export, in particular, comprehensive pre-export, export and, if necessary, equity financing, leasing and long-term support measures (by 2021);
  • creation of a unified system of institutions for export promotion aimed at the modernization of Russian trade missions abroad;
  • finalization of the common markets for goods, services, capital and labor within the framework of the Eurasian Economic Union, in particular, complete removal of barriers, limitations, exemptions in economic cooperation with simultaneous extensive involvement of the mechanisms for joint project implementation.

The REC Group is a key organization entrusted with the responsibility for the implementation of the Federal project and the development of the national system for export support and development.

REC Group mission and values

REC Group mission:
"In REC Group we believe in a boundless market for Russian goods and services. We improve public wellbeing by revealing the opportunities of global markets to Russian companies".

It is the Group mission that shapes REC’s future image the values as an institution responsible for the development of Russian non-resource export.

REC Group values
  • We are a team
    of professionals
    keen on export
  • We set
    standards and evolve
    continuously
  • We simplify complex
    things and offer
    “one click” export platform
  • We integrate the possibilities
    of state institutions and business
    for the benefit of export activities
  • Our work
    brings success
    to exporters