A Memorandum of Understanding was signed by Vneshtorgbank and Export Credit Guarantee Corporation of India (ECGC) on 12 November 2003 within the framework of the official visit made by the Prime Minister of India to Russia. In the presence of the Russian President Vladimir Putin and the Prime Minister of India Atal Bihari Vajpayee, Mr. Kostin, President and C.E.O., for Vneshtorgbank, and Mr. Khakim, President and Managing Director, for ECGC, signed the instrument.
The Memorandum is of a framework nature and it envisages favourable environment to be created for beneficial partnership between Vneshtorgbank and ECGC in a variety of domains. Main lines of co-operation are defined such as development of foreign trade between Russia and India, support to Indian investments in Russia and implementation of promising bilateral projects in third countries. Under the Memorandum, ECGC will be engaged in insurance of import letters of credit opened in favour of Indian exporters. Furthermore, Vneshtorgbank and ECGC will exchange information related to overall economic situation, corporate and banking business Russia and India, and hold joint workshops, conferences and round tables.
ECGC was established in 1957 as a company specialising in export risk insurance. The Government wholly controls Corporation and it is represented by the Ministry of Commerce and Industry of India. Key lines of business are banker`s guarantees, insurance for pre-export loans made by Indian banks, short-term and long-term lending, and services (including, those in the construction) rendered by Indian companies to foreign customers.