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Takes Prompt Actions to Deal with the Impact of Russia-Ukraine War on Foreign-trade Business
Date:03-22-2022   Hits:6934

As soon as Russia-Ukraine War broke out, Guangzhou Light Holdings Limited (hereinafter referred to as GZLI) immediately contacted the departments concerned and external relevant institutions, improved the sensitivity and response speed of risk control system and took multiple measures to respond to changes in the foreign trade environment, to minimize the possible negative impact on the business and effectively prevent risks.
 
Rapidly Respond, Timely Warning
After Russia-Ukraine War broke out, Risk Control Center quickly collected front-line news, continuously post risk tips in the company's information group, shared the live updates of Russia’s sanctioned banks and suppliers, to warn all the division against risk.

Review Concerned Business and Investigate Risks Immediately
The business involving Russia and Ukraine was comprehensively reviewed and investigated risks immediately. The import and export scale of GZLI in Russia and Ukraine is about 38 million US dollars. Considering the great uncertainties in logistics security, customer performance and exchange rate under the war situation, the shipment of orders exported to Russia and Ukraine was suspended. Meanwhile, GZLI actively communicated with PICC on the preplans for dealing with risks of foreign exchange receivable, timely dealt with cases that may report loss, and discussed the insurance scheme of this year in advance. The import business has not been directly impacted for the time being, but the company is still closely tracing the transport information between Russia and China and the international price fluctuations of bulk commodities to ensure the latest information and take necessary countermeasures.

Communicate Quickly and Formulate Strategies
Multiple departments took joint actions to strengthen communication and cooperation with banks, insurance companies and other external institutions. On March 2, relevant personnel of Bank of China were invited to GZLI to have a panel discussion with the business department on the payment of import business from Russia and Ukraine. Company has formulated hedging strategies for related businesses, such as converting to RMB settlement, suspending prepayments to sanctioned banks, and adjusting credit insurance limits, to provide additional security by third-party institutions.

  

A panel discussion with Bank of China Dongshan Branch on payment for import business from Russia and Ukraine

Look for Opportunities in Crisis to Turn Passive into Active
Since Ukraine war triggered massive trade and financial sanctions, GZLI increased its market sensitivity, changed passive to active, actively sought to develop new business opportunities, especially the agricultural products import business with a certain foundation. Several business divisions are engaging with customers to develop new imports of energy, chemicals, grains, oils and timber, which are expected to accelerate implementation.

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