Russian Attack Became A Headache For Exports

Russian attack became a headache for exports, now no insurance will be available for onboard shipments.

Indian exporters have suffered a major setback. Industry body FIEO has said that the Export Credit Guarantee Corporation (ECGC) has decided to withdraw coverage for shipments to Russia from February 25.

In the ongoing conflict between Russia and Ukraine, the ECGC said that it has been decided to revise Russia’s country risk classification based on the commercial outlook.

Revising its policy on Russia, the state-owned body ECGC has now put that country in the Restricted Cover Category (RCC-I) from the earlier ‘open cover’ category.

The open cover category enables policyholders to avail themselves cover on a more generous basis.

Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said that the ECGC has abruptly withdrawn the coverage of shipments to Russia from February 25.

Russian attack became a headache for exports: Such an action is a big blow to the export fraternity.

Because the cargo, which is parked at different Indian ports, will not be covered for shipment.

ECGC has made the Bill of Lending cut-off date mandatory till February 25. Sahai said that the policies which are in place are not correct. This immediate step of ECGC is a big setback for the exporters.

ECGC Limited, wholly owned by the Government of India, was established in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services.

Over the years, it has designed various export credit risk insurance products to suit the needs of Indian exporters and commercial banks extending export credit.

SC Ralhan, President of, Hand Tools Association, said that now ECGC will no longer cover export shipments to Russia and this is a big blow to the exporting community.

Gold will rise further this week, investors will feel safe due to global tensions.

Gold price today is at the highest level in the international market since 2020. The main reason for this can be called the war of Russia-Ukraine.

Markets have panicked but people’s confidence in investing in gold has increased. While the stock market is seeing a downward trend.

However, the Treasury has gained momentum. Despite the strengthening of the dollar, gold has gained the most in almost two years.