Pakistan's government has reportedly made efforts to recover millions of US dollars allegedly owed to Pakistani exporters by EEFC Bank of Saint Petersburg.

The government of Pakistan alleges that the Russian bank dishonoured letters of credit (L/Cs).

Export shipments

The Vice-President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has reportedly written a letter to Russia's commerce minister regarding the matter.

Azhar Majeed Sheikh alleged in the letter that payments amounting to nearly US$4.5 million were due to five Pakistani exporters for shipments made to Russia during June-August 2008.

L/Cs accepted

The shipments were financed by various L/Cs issued by EEFC Bank, which is now known as Bank Petrovsky.

The FPCCI claims that when shipment documents were sent to the bank, they were duly accepted, yet the Russian bank failed to make any payments.

Despite approaches by Pakistani banks, the FPCCI alleges that EEFC failed to pay because the Russian bank said it was awaiting payment from its customers.

Lobbying efforts

The exporters from Pakistan have reportedly already lobbied several Russian entities regarding their grievances, including the embassy of Pakistan in Russia, the embassy of Russia in Pakistan as well as the Russian ministries of commerce and finance.

So far, the exporters reportedly feel that their grievances have not been addressed.

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