-
The UK stops all government-backed export finance to Russia
and Belarus
-
UK export credit agency retains £3.5 billion of financial
support for trade to Ukraine as part of continued Government
support for close ally
-
DIT Export Support Service hotline resolves over 1,000
queries from UK businesses, helping maintain the flow of
trade to Ukraine
The UK government has announced it will no longer issue any new
guarantees, loans and insurance for exports to Russia and
Belarus.
The move follows the UK’s decision today to announce a ban on
exports to Russia of high-end luxury goods while hitting hundreds
of key products with new tariffs that represent a 35 per-cent
point hike on current rates.
Severe economic sanctions have diminished business prospects in
both countries, and this decision further reflects the economic
impact of the rapidly escalating and unprecedented action taken
by the UK and its allies.
UK Export Finance (UKEF) – the UK’s export credit agency – has
also today confirmed it will remain open to supporting trade to
Ukraine with £3.5 billion of capacity available as part of its
continuing and unwavering alliance This means UKEF can continue
to help UK exporters and Ukrainian buyers access the finance they
need to trade commercially.
Without government export credit support, any financial backing
from the private sector to the region is virtually impossible.
In December, the UK increased the amount of financial support
available to Ukraine from UKEF – to £3.5 billion – and signed a
new treaty that will help Ukraine access the world-class UK
supply chain to enhance its defence capabilities.
International Trade Secretary said:
Our severe economic sanctions are working. We are tightening the
screws on Russia to ensure they feel real consequences for their
illegal military invasion.
At the same time, we are doing everything we can to ensure
Ukraine remains open to the world. We have signed an
international treaty so that UK supplies can reach Ukraine and
strengthen their defences, and UK Export Finance – our
first-class export credit agency is supporting them with this.
The Department for International Trade has also today shared
figures showing the scale of support for UK businesses from the
Department’s Export Support Service (ESS).
ESS is the government’s central service for businesses who have
questions relating to trading with Ukraine, Russia or Belarus,
and has been operating around the clock as a dedicated hotline
for UK businesses since the crisis in Ukraine erupted.
Latest figures show DIT has resolved over 1,000 queries from
businesses, helping to maintain the flow of trade to Ukraine, and
also supported businesses who are wishing to stop trading with
Russia and Belarus.
Fifty-four licences for exports to Russia have been voluntarily
surrendered by UK businesses.
Many UK businesses are also contributing to the UK’s support for
Ukraine. DIT has received 33 licence applications to export items
to support Ukraine (compared to 43 approved in the whole of
2020).
It follows extensive engagement from the Department and ministers
with senior business figures to offer direct support.
Exports Minister said:
We are here to support UK businesses and give them the tailored
advice they need to best respond to the unprecedented and
complicated situation in Ukraine. It’s heartening to see our
business community step up and support Ukraine through this rapid
increase in export applications to help citizens get the vital
goods they depend on at this horrendous time.
I advise any businesses with questions about operations in
Ukraine, or Russia and Belarus to contact our Export Support
Service and get the support they need.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and a
government department, working alongside the Department for
International Trade as an integral part of its strategy and
operations. Established in 1919, it exists to ensure that no
viable UK export should fail for a lack of finance from the
private market. It provides finance and insurance to help
exporters win, fulfil and get paid for export contracts.
UKEF manages its financial exposures with reference to a set of
Country Limits, i.e. its risk appetite for the amount of business
it is willing to support in a country. Country Limit capacity can
reduce as UKEF supports new business, so please go to the website
for the most up to date position.
