Trade and export finance

Increase your sales in Russia with RosEvroBank (pdf)

RosEvroBank provides a complete range of top-notch banking services to provide comprehensive coverage of foreign trade contracts of its customers:

1.Offers consulting on any issue related to international settlement and foreign currency control under a foreign trade contract, at any stage of the deal in question (including drafting its terms and conditions)

2.Executes international settlements under foreign trade contracts in any form applicable in the international banking practice – from a standard money transfer to customer-tailored payment schemes (including combined settlement patterns within a single contract, and if necessary, with credit and trade finance facilities being used)

3.Offers a spectrum of international settlement services in the following forms:

• Documentary letter of credit
• under import deals – from opening an L/C upon Customer request or acknowledging L/Cs issued by correspondent banks to making payments under such L/Cs
• under export deals – from advising RosEvroBank customers and correspondent banks about L/Cs issued to their benefit by foreign banks, and accepting commercial documents for payment to receiving payment from foreign banks
• Documentary and clean collection
• upon Customer request and to the benefit of such Customer, the Bank receives payment or accepts commercial and/or financial documents (bills or cheques), ensuring an adequate control over the documents and effecting communication until the payment and/or collection is received
• Bank transfer

RosEvroBank duly and promptly effects settlement through funds in foreign currencies:

• Credit proceeds received for its exporting customers
• Makes payments within Russia and abroad
• Makes advance payments under foreign trade contracts
• Makes payments under transferable or ordinary bills etc.

RosEvroBank makes international payments on the same day an instruction from its Customers or correspondent banks is received. Upon their request, such operations can be transacted within several hours.

4.Execute guarantee operations

• Issues any bank guarantee/counter-guarantee, standby letters of credit, advises guarantees issued by other banks for Russian and foreign beneficiaries, claims payments, upon its Customer request, against other banks’ guarantees; certifies signatures on guarantees issued by foreign banks upon request of its Customers and other Russian legal entities.

Guarantee Operations

Upon Customer’s request, RosEvroBank issues any bank guarantees and stand-by letters of credit used in the international banking practices which imply money payment, for a wide range of operations:

1.Export operations:

• Performance guarantees
• Advance payment guarantees
• Customs guarantees

2.Import operations:

• Payment guarantees
• Customs guarantees
• Guarantees that are not directly related to either import of export operations, such as customs guarantees, tender guarantees, loan guarantees, share payment guarantees
• Other types of guarantee operations
• Advising guarantees issued by Russian and foreign banks in favor of Russian and foreign beneficiaries
• Claiming payments from guarantor banks upon beneficiary’s request under bank guarantee
• Certifying the authenticity of a signature on guarantees issued by other banks upon request by a customer and other Russian legal entities.

Guarantee operations are carried out in accordance with the applicable Russian legislation, international banking practices, Uniform Rules for Demand Guarantees (ICC Publication No.458) and applicable foreign exchange regulations.

Documentary letters of credit

Under documentary letter of credit (L/C) settlement RosEvroBank:

• Opens L/Cs upon request of its Customers and correspondent banks (if necessary, acknowledged by foreign banks) both in foreign currencies and in Russian Rubles for settlements under foreign trade contracts
• Offers opening any form and type of L/C. Upon agreement between the parties, collateral for such L/C can be either proprietary funds of the Customer, or funds from credit facility extended by the Bank to the Customer for this specific purpose. More importantly, the Bank’s customer can benefit from favorable terms for credits not only offered by RosEvroBank, but also raised from foreign banks
• Advises RosEvroBank Customers and correspondent banks of any L/C issued to their benefit and any amendment thereto with or without the Bank’s confirmation
• Offers the whole spectrum of operations related to L/C settlement (including making amendment to existing L/Cs, checking documents, making payments under issued L/Cs and claiming payment under advised L/Cs and crediting export proceeds)
• Formalizes assignment of L/C proceeds
• Executes an L/C transfer
• Reviews, upon Customer request, terms of L/Cs advised by the Bank
• Offers consultations as to payment terms of a contract, assists in drafting documents
• Makes payment under reimbursement authorization of foreign and Russian correspondent banks under L/Cs issued by them
• Issues reimbursement undertakings upon request of correspondent banks
• Confirms L/Cs upon request of correspondent banks.

International settlements in the form of documentary credits shall be executed in compliance with the internationally accepted banking practices (Unifies Customs and Practice for Documentary Credits, Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, etc) and existing foreign exchange laws.

Documentary and clean collection

When executing import settlements through documentary collection, RosEvroBank acts as a presenting and collecting bank with respect to the principal (exporter, seller), a remitting bank (the seller’s bank) and a paying bank (the buyer’s bank). To execute collection orders drawn by foreign banks, RosEvroBank as a collecting and presenting bank delivers commercial documents to its customers (importers of goods and services) against acceptance and/or against payment, or delivers document on other terms and conditions as well as obtains acceptance and/or payment under financial documents from its customers.

In export collection settlements related to exporting goods and services, RosEvroBank acts as a remitting bank and handles collections of the principals. A collection order form shall contain full and accurate instructions.

For collection, RosEvroBank accepts the following financial documents: bills of exchange, promissory notes, cheques or other similar instruments not accompanied by commercial documents, and also collects the customers’ drafts and cheques.

International settlements through documentary and clean collection are made in compliance with the international banking practices (ICC Uniform rules for Collections, etc) and applicable foreign exchange regulations.

Transfers

Bank transfer is the most popular form of Russia’s domestic and international settlements. A bank transfer is applied to make settlements under commercial transactions, including export and import settlements, payments under non-trade operations, and payments for services of intellectual property.

Branches in large cities and regional centers of Russia, worldwide network comprising several hundreds of banks located in Eastern and Western Europe, the USA, Asia, Africa and Latin America, and correspondent relations with over a hundred Russian banks, enable RosEvroBank to ensure high-quality and prompt execution of bank transfers. To make its services most tailored to Customers’ interests and needs, the Bank has opened correspondent accounts denominated in Euros and national currencies in major Western European banks.

Operations under bank transfers

RosEvroBank offers:

• Crediting export proceeds received for the Bank’s exporting Customers or correspondent banks
• Executing payment instructions of enterprises and institutions having current accounts with the Bank both to make settlements in foreign currencies within Russia, and to transfer the currency abroad as payment under import contracts or for other purposes related to exporting or importing goods, services and intellectual property
• Effecting documentary transfers which imply payment in foreign currency against commercial of financial documents by the recipient or against a receipt.

RosEvroBank to importers

RosEvroBank shall transfer foreign currency funds from Russia abroad to pay for import of goods/work/services and intellectual products, for non-trade operations, and for other financial purposes. The Bank’s staff can offer advice on payment terms of a contract and application procedure for a transfer. Transfer applications are accepted in RosEvroBank’s branches and offices, as well as electronically through the “Bank-Customer” remote system. Upon Customer request, the Bank may also undertake a prompt inquiry on effected transfers, and, if necessary, may amend payment instructions or cancel the transfer.

For more information please contact Head of International Business Development Administration Alexander Arkhipov