Authorities will strengthen insurance coverage for Russian exporters in foreign markets.

At the direction of President Vladimir Putin, the Russian government must develop measures to strengthen insurance coverage for companies engaged in foreign economic activity (FEA) in high-risk markets. Two sources familiar with the order told RBC this.

"The Government of the Russian Federation, together with the Russian EXPORT Center joint-stock company and interested organizations, shall develop, in accordance with the priorities for the development of foreign economic activity established by the Government of the Russian Federation, additional measures to increase the level of insurance protection for economic entities conducting foreign economic activity in high-risk markets," sources reported, citing the document.

Prime Minister Mikhail Mishustin and Veronika Nikishina, DIRECTOR General of the Russian Export Center (REC), have been appointed responsible for developing these measures. The initiative must be completed by March 14, 2025.

In response to RBC's inquiry, the Ministry of Finance clarified that the Russian Ministry of Industry and Trade is also responsible for this order. RBC sent the inquiry to the Ministry of Industry and Trade, the Central Bank, the Russian government , the Russian Export Center, and the export support agency Exar.

Economic entities engaged in foreign economic activity include exporting companies, as well as export-oriented small and medium-sized businesses, explains Ainaz Khairullina, Senior Director of Financial Institution Ratings at the National Rating Agency (NRA). High-risk markets include those of unfriendly countries, as well as those of other countries where the US DOLLAR and euro are predominantly used for settlements, the expert believes.

According to Alexey Bredikhin, Director of ACRA's Financial Institutions Ratings Group, strengthening companies' insurance coverage is a government policy measure to support foreign trade operations in the face of restrictions and sanctions from unfriendly countries.

High-risk markets can also include countries in Africa, Latin America, the Middle East, and Southeast Asia, as they are characterized by heightened political and economic risks, instability of national currencies, and difficulties with payment processing, adds Ilya Zharsky, Managing Partner of the Veta expert group. "This issue is especially pressing for exporters of industrial products, agricultural goods, and technological solutions." He emphasized that Russian businesses are forced to develop new markets amid sanctions restrictions.

Since early 2022, following the outbreak of military action in Ukraine and the imposition of sweeping sanctions, Russian exporters have been facing a number of challenges, including logistics, international payments, cargo insurance, and more. The situation worsened in late 2024 after the US imposed sanctions on nearly 50 Russian banks processing cross-border payments. Gazprombank, which handled payments for gas supplies to Europe, was also hit by restrictions. In early 2025, the US expanded its sanctions against Russia's energy sector, adding Gazprom Neft, Surgutneftegaz, approximately 140 tankers, as well as Ingosstrakh and AlfaStrakhovanie, which provide maritime insurance, among other services, to the sanctions list.

This directive won't directly affect ordinary Russian insurers, but will primarily affect a specialized agency—the Export Credit and Investment Insurance Agency Exar (part of the Russian Export Center and the state corporation VEB.RF), according to experts interviewed by RBC. Bredikhin mentioned subsidizing premiums for insuring higher risks, expanding the list of insured risks, or state participation in payments for certain risk groups as potential new measures.

According to Zharsky, the instruction could lead to the creation of mechanisms for insuring against risks associated with the use of national currencies in foreign trade transactions, and reinsurance instruments through the Russian National Reinsurance Company could also be developed. "The development and implementation of these measures could, for example, lead to the creation of a new mandatory type of insurance for export operations and settlements, which would affect the entire insurance industry," Khayrullina believes. The expert also notes that joint efforts are needed to maintain export volumes, including with insurance market participants to organize insurance coverage for the supply chain. Importers, as full-fledged participants in foreign trade, could also benefit from this initiative, especially since Exara's product line already offers insurance products for them, Khayrullina notes.

"Implementing these measures will require significant government resources, but this is inevitable in order to support the export potential of the Russian economy and diversify foreign trade relations," Zharsky concludes.

Exar was founded in 2011. it provides insurance support for the export of Russian-made goods and services, supports export-oriented SMEs, and supports critical imports. Exar's obligations under insurance contracts, reinsurance agreements, surety agreements, and independent guarantees are backed by direct government guarantees totaling $20 billion for export support and 650 billion rubles for import support, valid until December 31, 2042, according to the company's official website.

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