The Organization for Economic Cooperation and Development (OECD) offers an open platform for multilateral negotiations, that brings governments and experts together to elaborate theoretical ideas and practical approaches to address world's primary economic, social and environmental issues, develop international rules and regulatory standards as well as promote sound and smart international economic policies. As one of the leading international regulatory bodies, OECD sets the guidelines for export credit activities provided by the governments and adopts good governance approaches that include recommendations in such areas as combating bribery and promotion of sound environmental policies to ensure an open, fair and transparent trade system. Thus, by following OECD rules, export credit agencies and development banks contribute to the development of a level playing field among all official export finance providers.
Since export credit and insurance support is one of the main areas of support provided by REC Group, the need to comply with certain internationalwith regard to officially supported export credits becomes essential.
The primary OECD framework documents that the companies of REC Group are guided by in their activities are:
- OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (including the OECD Guidelines on Combating Bribery of Foreign Public Officials in Officially Supported Export Credits, 2006);
- Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (Common Approaches).
Combating Bribery of Foreign Officials
The need to comply with the OECD requirements in combating bribery of foreign officials is an obligation of the Russian Federation, which is recognized through ratification of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (in accordance with the Federal Law No. 3-FZ dated February 1, 2012).
Following this, companies of the REC Group (namely JSC EXIAR and JSC Eximbank of Russia) have established a set of measures on combating bribery of foreign public officials and implemented specific procedures to ensure that due diligence processes are put in place to verify that applicants are not engaging in acts of foreign bribery.
More details on the current procedures can be found in the corresponding “Combating Bribery of Foreign Officials" sections on the websites of JSC EXIAR and JSC Eximbank of Russia.
In the meantime, REC Group is developing several awareness raising mechanisms for non-financial support part of its activities.
Environmental and Social Due Diligence
Following best practices and international experience of environmental and social risk management, JSC EXIAR and JSC Eximbank of Russia follow the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (Common Approaches).
This document contains a set of guidelines on environmental and social risks and impacts management while providing officially supported export credits, to prevent or minimize the negative impact of supported projects on the environment and society.
More detailed information on the current procedures for assessment of potential environmental and social impacts can be found on the websites of JSC EXIAR and JSC Eximbank of Russia.