The Chinese state-owned company Sinosure, which insures export supplies against the risk of non-payment, no longer wants to continue cooperation with Russian entrepreneurs.
Points of attention
- Cooperation with Sinosure used to be a key element in providing insurance guarantees for export deals.
- Russian companies are already experiencing the negative consequences of restrictions on cooperation with Sinosure, which may lead to a more difficult situation on the international market.
- Deterioration of the conditions of cooperation with the Chinese insurer may be associated with the risk of secondary sanctions, problems with payments, as well as a blow to Sinosure's reputation.
What is known about the new problems of the Russian Federation
As the journalists managed to find out, when a foreign importer agrees with a Chinese supplier to delay payment, he turns to Sinosure for insurance.
What is important to understand is that the insurer then requests an assessment of the importing company from a partner in its country (for example, a bank), and the latter assigns it a credit rating.
After that, Sinosure approves the importer for a limit on the amount of delivery — usually up to 90-95%, with a grace period of 90-120 days — and issues insurance for the percentage. The importer pays for part of the delivery, and the exporter ships the goods. The importer must pay the remaining part of the funds after receiving the goods and before the end of the grace period. If he does not, the Chinese supplier will receive insurance compensation.
Journalists' insiders draw attention to the fact that Russian businessmen have recently had difficulties working with Sinosure.
One of the Chinese suppliers informed the Russian importer that the state-owned company would not insure their deal due to the nature of the exported goods.
Such cases are happening more and more often
According to another anonymous source, recently it became known about several more cases of resetting the limit to zero for companies from Russia.
They began to fall into the "black list" of Sinosure, but why this is happening — no one knows yet.
The version has already been voiced that during interaction with Russian businessmen, Sinosure began to act by analogy with Chinese banks and refuses to insure the export of goods, the list of which coincides with the black list of a large state bank — Bank of China.
The reduction of insurance through Sinosure is particularly noticeable in such industries as energy, mechanical engineering and chemistry, where Russian companies have traditionally been active players, said Andriy Gusev, managing partner of the Nordic Star law firm.
He also added that there are various reasons. Among them is the risk of secondary sanctions, difficulties with payments, and a blow to the reputation of Sinosure in the international market.
