Russian FCI Members are open for two-factor business

Thursday 15 December 2016

On Tuesday 13 December 2016, FCI organized a meeting with its Russian Members in Moscow.

The main purpose for the meeting was to connect with the Russian members who are operating in a rather difficult international environment, due to the general economic situation in Russia and the mutual sanctions on certain products and on certain companies.

Almost all FCI members and some prospective members were present at the meeting, as well as the Secretary General of the Russian Factoring Association, Dmitry Shevchenko.

Erik Timmermans, Deputy Secretary General of FCI and responsible for EMEA started with a presentation on the World of Factoring and on FCI, one year after the Union with IFG.

The discussion that followed illustrated the high level of commitment from the Russian factoring industry to FCI and to international factoring.

The elephant in the room was obviously the situation caused by the mutual sanctions between Europe/USA and the Russian Federation. The Russian members regret that many correspondent Factors have put on hold all import-export transactions with Russia through the two-factor system, even when most transactions and most sellers/buyers are not subject to sanctions. Erik Timmermans explained that it remains the sole decision of an individual member to accept two-factor business or not, but he encouraged the Russian members to continue to network with their FCI counterparts and to identify partners who are ready to do two-factor business with Russia. The Russian Factoring Industry made a clear statement that they are open for business both as import and export factors. This should even be easier than ever before, now that a new foreign exchange law allows Russian factoring companies to collect foreign currency for invoices assigned to them. The Russian association also confirmed that Russia has ratified the UNIDROIT Convention on International Factoring.

Other topics of discussion were the FCI SCF initiative, Education and the Foundation Course in Russian language, cooperation on development of additional statistics, new products and advocacy initiatives.

FCI looks forward to a continuing strong cooperation with the dynamic Russian Factoring industry.