Tatarstan businesses hold a significant share among users of the Russian cross-border payment platform A7. This was reported to journalists by Vladimir Lushchinsky, Director of the Sales Department of A7, during the III International Forum “SPROUTS: Russia and China – Mutually Beneficial Cooperation”. According to him, businesses from across the country, including Tatarstan, are represented among the platform's users.
“The share of Tatarstan companies is quite large. The Republic of Tatarstan is an innovative territory where technological processes are implemented in production, agriculture, and other spheres. Since all this is connected with the development of industrial zone, these are our clients, including the special economic zones located in Tatarstan,” said Vladimir Lushchinsky.
He told that approximately 700 payments are processed on the platform daily. This is a significant figure, noted the Director of the Sales Department of A7.
“Russian exporters and importers presently have a very high demand for making payments worldwide in any currency for any goods. As the country is under sanctions, such tools are among the main ones for meeting business needs. We also provide Russian manufacturers with receiving payment for their goods in rubles,” explained Vladimir Lushchinsky.
Georgy Ryabtsev, Executive Director of the Russian-Asian Union of Industrialists and Entrepreneurs (RAUIE), noted that switching to settlements in national currencies allows businesses to reduce their dependence on the US dollar and euro. “Settlements in national currencies help reduce currency volatility, thereby decreasing transaction costs. Based on our experience, switching to yuan settlements can reduce costs by up to 5-7% in total equivalent, which is a fairly significant amount,” said Georgy Ryabtsev.
According to the RAUIE Executive Director, the most promising sustainable growth strategies for businesses are, first of all, localization supported by both Russian and Chinese authorities and actively used by Chinese businesses localizing production in Russia. Secondly, expanding activities, including into the regions. Thirdly, integration, including into business alliances, as well as participation in events like the SPROUTS Forum.
Alexander Fedonin, Deputy General Director - Commercial Director of the Gersa insurance company, told at the SPROUTS Forum that only 3% of enterprises resort to accounts receivable insurance. He cited insufficient awareness among businesses as the reason.
According to him, the situation is gradually changing. However, the development of this type of insurance could be facilitated by a number of legislative changes. “In developed world economies, insurance is a reliable form of securing. Thereof, banks can reduce reserves, improve loan quality when secured by an insurance policy, and offer clients cheaper financing or factoring. Unfortunately, in Russia, this issue has not been solved at the legislative level,” said Alexander Fedonin.
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The Third International Forum “SPROUTS: Russia and China – Mutually Beneficial Cooperation” will be held in Kazan on August 18-19. Participants from 32 countries, 59 regions of Russia, and 24 administrative divisions of the People's Republic of China have registered for the forum. Eleven government delegations and at least 200 Chinese corporations are expected to attend. Approximately 10,000 people will participate in the forum.
The business program covers areas such as inter-state dialogue, economics, industry, education, business and entrepreneurship, business associations, finance and investment, culture, media, law, transport, agriculture, tourism, and construction. The program features around 100 events, including 70 business sessions. Around 20 agreements are planned to be signed at the forum.
ANPO Directorate of International Programmes is the operator responsible for preparing and holding the SPROUTS Forum.
Official website of the SPROUTS Forum: https://russiachinaforum.com
“The share of Tatarstan companies is quite large. The Republic of Tatarstan is an innovative territory where technological processes are implemented in production, agriculture, and other spheres. Since all this is connected with the development of industrial zone, these are our clients, including the special economic zones located in Tatarstan,” said Vladimir Lushchinsky.
He told that approximately 700 payments are processed on the platform daily. This is a significant figure, noted the Director of the Sales Department of A7.
“Russian exporters and importers presently have a very high demand for making payments worldwide in any currency for any goods. As the country is under sanctions, such tools are among the main ones for meeting business needs. We also provide Russian manufacturers with receiving payment for their goods in rubles,” explained Vladimir Lushchinsky.
Georgy Ryabtsev, Executive Director of the Russian-Asian Union of Industrialists and Entrepreneurs (RAUIE), noted that switching to settlements in national currencies allows businesses to reduce their dependence on the US dollar and euro. “Settlements in national currencies help reduce currency volatility, thereby decreasing transaction costs. Based on our experience, switching to yuan settlements can reduce costs by up to 5-7% in total equivalent, which is a fairly significant amount,” said Georgy Ryabtsev.
According to the RAUIE Executive Director, the most promising sustainable growth strategies for businesses are, first of all, localization supported by both Russian and Chinese authorities and actively used by Chinese businesses localizing production in Russia. Secondly, expanding activities, including into the regions. Thirdly, integration, including into business alliances, as well as participation in events like the SPROUTS Forum.
Alexander Fedonin, Deputy General Director - Commercial Director of the Gersa insurance company, told at the SPROUTS Forum that only 3% of enterprises resort to accounts receivable insurance. He cited insufficient awareness among businesses as the reason.
According to him, the situation is gradually changing. However, the development of this type of insurance could be facilitated by a number of legislative changes. “In developed world economies, insurance is a reliable form of securing. Thereof, banks can reduce reserves, improve loan quality when secured by an insurance policy, and offer clients cheaper financing or factoring. Unfortunately, in Russia, this issue has not been solved at the legislative level,” said Alexander Fedonin.
*****
The Third International Forum “SPROUTS: Russia and China – Mutually Beneficial Cooperation” will be held in Kazan on August 18-19. Participants from 32 countries, 59 regions of Russia, and 24 administrative divisions of the People's Republic of China have registered for the forum. Eleven government delegations and at least 200 Chinese corporations are expected to attend. Approximately 10,000 people will participate in the forum.
The business program covers areas such as inter-state dialogue, economics, industry, education, business and entrepreneurship, business associations, finance and investment, culture, media, law, transport, agriculture, tourism, and construction. The program features around 100 events, including 70 business sessions. Around 20 agreements are planned to be signed at the forum.
ANPO Directorate of International Programmes is the operator responsible for preparing and holding the SPROUTS Forum.
Official website of the SPROUTS Forum: https://russiachinaforum.com