1 EDC IN RUSSIA Export Development Canada Focus on Innovations by EDC in the market Rod Lever, EDC Chief Representative in Russia & CIS Swissôtel, Moscow May 29, 2007

2 EDC at a Glance  Principal product areas: - Corporate lending - Indirect lending - Short Term program  Broad definition of “Canadian content”  “Innovations” in the Russian market To cover today:

3 Products/Structures  Guarantees  Direct lending  “Indirect” lending  Corporate lines of credit  Syndicated facilities I.Medium/Long-term Structures

4 Indirect Lending Instruments Products and Financing Options Canadian Exporter Russian Buyer 1) Application 3) Delivery of goods/ services 4) Necessary documents Russian Bank 2) Allocation (Line of Credit) 5) Payment at sight 6) Deferred Payment 7) Loan obligation

5 Which Banks in Russia can EDC work with? … an illustrative list Sberbank VTB Gazprombank Vnesheconombank International Moscow Bank Raiffeisen (Impexbank) Rosselkhozbank Russian Bank for Development Uralsib Rosbank MDM Russian Standard Bank Promsvyazbank (PSB) Bank Petrocommerce Nomos Bank International Industrial Bank Bank Zenit Bank of Khanty-Mansiysk Evrofinance Mosnarbank Sobinbank Globexbank European Trust Bank Bank Soyuz TransCreditBank National Bank Trust Bank Rossiya BIN Bank Sviazbank MBRD Vozrozhdeniye Bank URSA Bank Absolut Bank Bank Avangard Probusinessbank Rosevrobank Credit Bank of Moscow International Bank of St-Petersburg Transcapitalbank Orgresbank Slavinvestbank Moskommertsbank Locko-Bank Chelyabinvestbank Omskbank

6 Products/Structures  Open Account (receivables insurance)  Information requirements – indirect relationship between EDC and Russian buyer  Insurance of Letters of Credit (L/Cs) – foreign bank obligations II. Short Term Credit Structures

7 “Innovations”  Target: strong companies that may not already have access to capital markets or global banks  Critical information: audited financial statements, business plan  Reputable auditor I. Direct Lending – Russian mid tier companies

8 “New Areas”  Working with Russian partner lease companies  Are finalizing facility to take direct risk on leases  Also can (and do) work with wide variety of Russian lease companies – including Uralsib Leasing  Inventory finance – important area for Canadian firms that need to maintain inventory in market to meet customer requirements in timely manner II. Leasing and Inventory Finance

9 “Innovations”  Adds +35% to contract value  Provides significant value to have these costs financed III. Financing of Duty and VAT

10 Mandate – when can EDC get involved?  Broad definition of Canadian content  Support for investment as well as trade  Adapting ourselves to be relevant to Canadian firms and their customers operating in the market

11 Mandate – case study – System Integrators  System integrators typically not Canadian but are important for market penetration  EDC can support Canadian content even when contract is between non- Canadian entities  Allows Canadian firms to meet local market requirements/needs

12 Rod Lever Chief Representative in Russia & CIS EXPORT DEVELOPMENT CANADA Embassy of Canada 23, Starokonyushenny pereulok, Moscow Russia T: / -99, F: Website: EDC Contact Information