The Chinese state company Sinosure, which insures export shipments against the risk of non-payment and allows local companies to work with foreign companies on deferred payment terms, has increasingly begun to refuse to work with Russian entrepreneurs.
Sinosure was set up by the Chinese authorities in 2001 to promote the development of foreign trade. The insurer covers risks related to the receipt of deferred payments from exporters, collection of principal and interest on export loans, etc.
However, Russian companies have recently encountered difficulties in working with Sinosure. Recently, a Chinese supplier reported that Sinosure, citing its internal policy, refused to insure its transaction due to the nature of the exported goods, despite the fact that they are non-approved chemical products. At the same time, the insurer did not reset the importer’s limit, i.e. the importer can continue to work through Sinosure, but not for all groups of goods. The list of available goods is unclear, as the insurer does not publish it.
Andrei Gusev, Managing Partner at Nordic Star Law Offices, has familiarised himself with the case and commented on the situation in the Vedomosti article (available by subscription).