FESCO and Vneshtorgbank sighned a cooperation agreement

30 September 2004
Far-Eastern Shipping Company and one of the leading banks of Russian Federation signed a cooperation agreement.

In the middle of December FESCO group of companies signed the contract on new refrigerator containers’ supply. The account terms of the signed contract stipulate opening of irrevocable letter of credit for benefit of container equipment purveyor.

Bank of Foreign Trade (Vneshtorgbank) of Russia opened letter of credit with payment by installments. According to the Agreement on cooperation signed in September this year, Vneshtorgbank keeps participation in budgeting of FESCO Programs on renewal of fleet and container equipment park.

As form of deal accounts, documentary credit provides interests of exporter and importer in the best way. On the one hand, letter of credit is Bank’s obligation (liability) to pay to the seller a certain sum of money on the assumption of timely accordance of transport and commercial documents. On the other hand, it furnishes guarantees to the company-buyer in receipt of trade articles in exchange for bankroll payment. Per se the letter of credit with payment by installments is a credit.

Opening of the present letter of credit is a new step in long-term effective cooperation of the largest private Russian shipping company and leading Russian bank. Experience and position of Vneshtorgbank on international market allows to use different methods of international account while conducting foreign trade activity of the companies.

Far Eastern Shipping Company, being one of the most dynamically developing companies of region, has an opportunity to develop and modernize its production basis more actively, and aims at further renewal and reinforcement of Russian fleet.