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EDC IN RUSSIAExport Development Canada

Focus on Innovations by EDC in the market

Rod Lever, EDC Chief Representative in Russia & CISSwissôtel, Moscow

May 29, 2007

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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:

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Products/Structures

Guarantees

Direct lending

“Indirect” lending

Corporate lines of credit

Syndicated facilities

I. Medium/Long-term Structures

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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

P

aymen

t

7) Loan obligation

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Which Banks in Russia can EDC work with?… an illustrative list

SberbankVTB

GazprombankVnesheconombank

International Moscow BankRaiffeisen (Impexbank)

RosselkhozbankRussian Bank for

DevelopmentUralsib

RosbankMDM

Russian Standard BankPromsvyazbank (PSB)Bank Petrocommerce

Nomos BankInternational Industrial

BankBank Zenit

Bank of Khanty-MansiyskEvrofinance Mosnarbank

SobinbankGlobexbank

European Trust Bank

Bank SoyuzTransCreditBank

National Bank TrustBank Rossiya

BIN BankSviazbank

MBRDVozrozhdeniye Bank

URSA BankAbsolut Bank

Bank AvangardProbusinessbank

RosevrobankCredit Bank of Moscow

International Bank of St-PetersburgTranscapitalbank

OrgresbankSlavinvestbank

MoskommertsbankLocko-Bank

ChelyabinvestbankOmskbank

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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

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“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

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“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

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“Innovations”

Adds +35% to contract value

Provides significant value to have these costs financed

III. Financing of Duty and VAT

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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

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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

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Rod LeverChief Representative in Russia & CIS

EXPORT DEVELOPMENT CANADA Embassy of Canada

23, Starokonyushenny pereulok, Moscow 119002 RussiaT: +7-495-105-6095 / -99,

F: +7-495-105-5667 Email: rlever@edc.caWebsite: www.edc.ca

EDC Contact Information