Representatives of Ukrainian companies have been meeting with their Swedish counterparts to explore new ways of doing business, including on letter of credit (L/C) terms.

At a meeting jointly organised by the fifth-largest accounting network in the world, BDO, and the Stockholm based Swedish-Ukrainian Chamber of Commerce, participants learnt that L/C support was available from the Swedish Export Credit Agency (EKN) and from Ukraine's largest bank, Privatbank.

Confirmed or unconfirmed L/Cs

Johan Dahl, a representative of EKN, spoke about the export credit agency's programmes to cover Swedish export transactions with confirmed or unconfirmed L/Cs issued by a Ukrainian bank and programmes to cover credit risks of Swedish exports for Ukrainian buyers.

Sweden approved a special guarantee framework for EKN in its 2024 budget which allows for the allocation of funds to appropriations in the state budget for guaranteeing exports to Ukrainian importers. The special guarantee fund currently stands at 333 million Swedish krona (SEK333 million - US$30 million) for 2024-2026, which is likely to be increased and extended.

PrivatBank L/C opportunities

Oleg Kovalenko, head of documentary business and trade finance at PrivatBank, talked about the bank's services for importers of products from Sweden, specifically the possibility of using L/Cs and guarantees for Ukrainian importers.

Customers importing goods from Sweden can obtain an L/C or guarantee from PrivatBank with confirmed or deferred payment. The exporter's risks are covered by EKN with insurance coverage of up to 80 per cent of the transaction amount.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.