Export Development Canada (EDC), Canada`s official export credit agency, and Vneshtorgbank signed a Memorandum of Understanding in Moscow on November 6, 2003 to enhance co-operation and co-ordination in support of Canadian exports of goods and services to Russia.
The agreement establishes an ongoing relationship between EDC and Vneshtorgbank, and provides a framework for both organizations to enter into financing arrangements for specific transactions, to exchange information about potential projects and programs, and to promote each other`s services in Canada and Russia.
Moreover, a key component of the agreement is a declaration that both parties are working towards shortly establishing a US $50 million line of credit, under which EDC would provide direct financing to Vneshtorgbank for on-lending to its Russian clients in support of their capital goods and services purchases from Canada.
The Memorandum of Understanding was signed at Vneshtorgbank`s offices in Moscow by Mr Klaus Buttner (on the right), EDC`s Regional Vice-President for Africa, Europe and the Middle-East, and by Mr. Denis Ursulyak, Vneshtorgbank`s Vice-President.
As part of the growing trade relationship between Canada and Russia, the agreement provides a sound basis for EDC and Vneshtorgbank to help boost commercial activity in sectors such as oil and gas, energy, mining, manufacturing, construction, telecommunications and forestry. Realizing new opportunities in these sectors of importance for both the Canadian and Russian economies is central to the Memorandum of Understanding between EDC and Vneshtorgbank.
EDC is a Canadian financial institution devoted exclusively to providing trade finance services in support of Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation of the Government of Canada that operates as a commercial financial institution. In 2002, EDC extended CAD $51.2 billion in trade finance and risk management services to finance or insure export sales and investments by more than 7,200 Canadian companies in 182 markets.