The Export Credit Guarantee Corporation (ECGC) has decided to withdraw the cover for shipments to Russia with effect from February 25, which is a huge setback for exporters, industry body FIEO said on Saturday.
Amid the ongoing conflict between Russia and Ukraine, ECGC said: “Based on the near-term commercial outlook, we have decided to modify the country risk classification of Russia.”
ECGC, a government-owned entity, has now put Russia in the ‘restricted cover’ category from the earlier ‘open cover’ category.
Shipping liners have stopped booking export cargo for Russian and Ukrainian ports, officials said. Cruise liners have also decided to suspend port calls in Russia, they said.
Russia is the topmost destination for India’s engineering exports in the Commonwealth of Independent States.
The action by shippers will not only affect exports that have been contracted but also place a question mark on future shipments.
Source : Telegraph India