South Korea's Eximbank is to open a line of credit for Vneshtorgbank (VTB) and Gazprombank to extend short-term trade finance worth US$30 million and $20 million, respectively. The agreements will enable Korean firms who export to or do business with Russia to receive payments immediately, while Russian importers will be able to receive credit before they earn revenues from sales.
The credit line will be allocated for two years, VTB vice president Vladimir Dmitriev said. South Korea's Eximbank is offering the money to finance VTB clients that import South Korean goods.
“VTB may use the money received to finance Gazprom. "Various Gazprom contracts are for Korean equipment," Dmitriev said.
VTB and Eximbank South Korea are already talking about the possibility of expanding the terms and volume of the credit line.
Source: Interfax and Asia Pulse
