State-owned ECGC Ltd is taking a cautious approach in providing credit cover on shipments to Russia, it's officiating Chief Geetha Muralidhar has said.

"We are providing cover only on a case-by-case approval basis", Geetha told BusinessLine here.

She was in the capital to attend a Ficci-Exim Bank event on promoting trade and investments with BRICS countries.

The main role of ECGC is that it insures the exporters' credit risks against both commercial and political conditions and guarantees payment to the exporters.

Risk perception on Russia has been on the rise ever since the US and the EU imposed sanctions over the Ukraine crisis.

The Western world sanctions along with the steep plunge in oil prices were the key factors that had led to the precipitous fall in value of the rouble last year.

ECGC is currently undertaking an internal review as to whether Russia needed to be "downgraded" or not, an official said on conditions of anonymity. The review is expected to be done by May 6 and any downgrade in rating would mean higher risk and thereby increased premium for ECGC cover on shipments to Russia.

"As on date, we still cover (shipments to Russia). It is not that we have stopped it.The risk perception is higher", the official added.

India sees huge potential for exports to other countries in the BRICS grouping.

In the first ten months of fiscal 2014-15, India's total exports stood at $ 262 billion, of which exports to BRICS stood at $ 22 billion.

In entire 2013-14, India's exports to BRICS stood at $ 27 billion, out of total exports of $ 314 billion.

China remained the largest exporter among the BRICS with its share in the BRICS exports to the world increasing from 60.1 percent in 2004 to 64.8 per cent in 2013.

The only other economy that experienced an increase in share of exports within BRICS was India (share increased from 7.7 percent to 9.9 percent).

srivatskr@thehindu.co.in

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