The agreement envisions cooperation between the banks to boost trade turnover between Russia and Germany. The banks also plan to jointly implement their investment projects, and intend to expand the range of services offered to Russian clients for the financing of agricultural equipment supplies.
Insurance coverage for the joint projects will be provided by insurance agency Euler Hermes, whose representatives attended the agreement signing ceremony.
AKA Export Finance Bank was established in 1952. A total of 24 German credit organizations, including Deutsche Bank, Commerzbank, Dresdner Bank are the bank's shareholders. As of the end of 2005, the bank's total assets stood at 3.6 billion euros ($4.6 billion).
The Euler Hermes group of companies, founded in 1917, is the world's leader in credit insurance. Hermes operates in 45 countries and embraces 34% of the world's credit insurance market.
Rosselkhozbank was founded in 2000 to service Russia's agricultural sector. Agriculture receives considerable state support, which was increased further in 2006 with the launch of a priority national project to develop the agro-industrial sector.
Rosselkhozbank is 100% state owned. As of the end of the first half of 2006, it was among Russia's 15 largest banks. It offers a wide range of services to medium and small agricultural businesses and to Russia's rural population through its network, which comprises more than 500 offices across the country.
