Credendo Mulls €4bn Russia Exposure, Joint Venture as Export Credit Agencies Feel Pinch

Mark Norris was quoted in the article, "Credendo Mulls €4bn Russia Exposure, Joint Venture as Export Credit Agencies Feel Pinch," which was published by Global Trade Review (GTR) on March 16, 2022. The article discusses the decision faced by Credendo, Belgium's export credit agency (ECA), regarding its joint venture with a commercial Russian insurer in light of Russia's invasion of Ukraine.

Mark notes how ECAs with large exposures to Russia may need to reduce coverage on a wider scope: "It's going to impact on how they do business going forward if they’re having to make provisions for those exposures." On the challenge of recovering money from companies in Russia when an ECA pays out on a guarantee, he comments: "If you’re financing infrastructure, that’s different from if you’re financing an aircraft, because you may be able to arrest and seize the aircraft if it’s located outside of the jurisdiction." He also addresses possible long-term effects of the invasion for ECAs: "If export credit agencies then decide that they will support oil and gas projects, in safer environments, then what you’re going to see is the percentage of their cover in those sectors increasing."