Export Champions!™ With help of cutting-edge financing, four small and mid-size US companies are poised to export over $525 million of goods and services!

With the help of cutting edge financing, four small and mid-size US companies are poised to export over $525 million in just three individual transactions! 

Fi3E Badge(April 23, 2015, Washington, DC) During US EXIM Bank’s Annual Conference, Export Champions!™, a new program, which allows small and mid-size US manufacturing companies to vastly boost their export sales by utilizing cutting-edge export credit and capital markets financing for international opportunities, was announced by the Broad Street Capital Group.

Using actual case studies of the three US companies, whose export revenues from just three projects total over $525 million, as the result of their foresight to deploy financing techniques traditionally reserved for large companies and mega projects,  Broad Street Capital Group and representatives of various US Government and private trade and project financing institutions, will empower other US small and midsize companies to successfully compete for large export business opportunities.

“Today, we are witnessing a paradigm shift in the way US small and mid-size companies are able take advantage of sales opportunities, which are two or three times their annual revenue.” said Alexander Gordin, Managing Director of the Broad Street Capital Group. “The key, is a carefully structured project, which is developed with specific long-term, low-cost financing solution in mind from the beginning” said Gordin.

The Export Champions! program will offer monthly half-day web based programs and live training events to help companies learn:

  • which foreign markets and buyers to target,
  • how to correctly develop a financeable transaction,
  • which financing tools and programs to utilize,
  • how to put together a correct team of advisers,
  • utilizing external economic and political factors to gain an advantage,
  • how to mitigate risks along the entire transaction life cycle

The first Export Champions! event to take place in New York on May 8th.  Companies seeking to boost their international sales opportunities should send their inquiries to info@broadstreetcap.com , or call  + 1 212 705 8765 ext 702

About Broad Street Capital Group

Based in the heart of the New York City, Broad Street Capital Group is an international private merchant bank with extensive experience in developing and financing exports and infrastructure projects in emerging markets. The firm works closely with a number of international Export Credit Agencies, as well as with all trade and development agencies of the U.S. Government.   For over 25 years, Broad Street Capital Group has successfully served a broad array of private and state-owned clients in multiple countries and has been involved in several high-profile cross-border transactions in energy, IT/telecom, aerospace, healthcare, hospitality and franchising sectors. The firm’s hallmark is its proprietary Develop, Finance, Supply and Insure™ approach to help clients achieve their international business goals For more information, please visit www.broadstreetcap.com

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Broad Street Capital Group arranges $285 million in an export financing transaction slated to create over 600 jobs

Originally posted on Fluent In Foreign Business:

Broad Street Capital Group arranges $285 million in an export financing transaction slated to create over 600 jobs 

(April 9th, 2015), New York. Broad Street Capital Group announced today that it has arranged a $285 million long-term, low-interest export credit financing facility through the Export Import Bank of Hungary (Magyar Export-Import Bank Zrt.) to finance production and installation of small gas turbines capable of producing 174 MW of electricity and heat.  Acting as the exclusive financial advisor to the Distributed Generating Company, LLC of Samara, Russia, Broad Street Capital Group has structured a complex tri-country transaction, which involves joint US-Hungarian manufacturing and supply effort.  The transaction will create over 600 jobs in Hungary and in the US over the next twenty-four months.

“We are delighted to serve as the financiers on this cutting-edge project, which will provide distributed energy generation services to commercial and state-owned offtakers, helping them maximize energy…

View original 179 more words

Broad Street Capital Group arranges $285 million in an export financing transaction slated to create over 600 jobs

Broad Street Capital Group arranges $285 million in an export financing transaction slated to create over 600 jobs 

(April 9th, 2015), New York. Broad Street Capital Group announced today that it has arranged a $285 million long-term, low-interest export credit financing facility through the Export Import Bank of Hungary (Magyar Export-Import Bank Zrt.) to finance production and installation of small gas turbines capable of producing 174 MW of electricity and heat.  Acting as the exclusive financial advisor to the Distributed Generating Company, LLC of Samara, Russia, Broad Street Capital Group has structured a complex tri-country transaction, which involves joint US-Hungarian manufacturing and supply effort.  The transaction will create over 600 jobs in Hungary and in the US over the next twenty-four months.

“We are delighted to serve as the financiers on this cutting-edge project, which will provide distributed energy generation services to commercial and state-owned offtakers, helping them maximize energy efficiency and control costs. This transaction will serve as the job creation driver to two storied manufacturing companies on both sides of the Atlantic.  Given today’s complex geopolitical circumstances in Eastern Europe, keeping focus on financing and development of small and medium enterprises is especially challenging. ” stated Alexander M. Gordin, Managing Director of Broad Street Capital Group

About Broad Street Capital Group

Based in the heart of New York City, Broad Street Capital Group is an international private merchant bank with extensive experience in developing and financing exports and infrastructure projects in emerging markets. The firm works closely with a number of international Export Credit Agencies, as well as with all trade and development agencies of the U.S. Government.   For over 25 years, Broad Street Capital Group has successfully served a broad array of private and state-owned clients in multiple countries and has been involved in several high-profile cross-border transactions in energy, IT/telecom, aerospace, healthcare, hospitality and franchising sectors. The firm’s hallmark is its proprietary Develop, Finance, Supply and Insure™ approach to help clients achieve their international business goals For more information, please visit www.broadstreetcap.com

 

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Showing hello: 15 ways people greet each other around the world

Thai-wai
A tourist meets a local farmer in Chiang Mai, Thailand, offering a traditional “wai” greeting.  IMAGE: HUGH SITTON/CORBIS

There are a number of ways to say hello around the world, and just as many ways to show them.  These traditional greetings, ranging from region to region, have developed into cultural norms — often to show respect. Take a peek at this helpful infographic made by Two Little Fleas, showing us the different ways people from all over the globe greet one another. And if you’re planning a trip anytime soon, take notes so you’re not lost in translation.READ MORE

School of ECA Finance to hold a special session during the US Ex-Im’s annual conference week

School of ECA Finance
Washington, DC | 20th and 21st April
Dear Readers,

We would like to inform you that TXF and CC Solutions will be hosting the

School of ECA Finance in Washington, DC on the 20th and 21st of April (the week of the EXIM Bank Annual Conference).

The School is an intensive and highly respected two-day training course providing requisite knowledge of all key areas of export finance. Faculty leaders Valerie Colville and Francisco Anzola will be joined by US EXIM Bank’s James Lewis as well as other guest speakers. All guests of this year’s annual US EXIM Bank Annual Conference, will be entitled to a

25% discount on the normal school rate.
The School is relevant to financiers, exporters, contractors, corporates and lawyers looking to get greater insight into export finance in 2015. You can download the full brochure here.
To book click here or for further information contact Katy Rose, quoting EXIM.

Best regards,

US EXIM Bank Events Team

 Testimonials from the recent School of ECA Finance, hosted in London

 

“Very thorough and interactive course. Valerie and Francisco were excellent and addressed questions very well.”

 

“Useful overview of all aspects of an ECA financing and very seasoned speakers.”

 

“The knowledge of Valerie and Francisco is obvious and makes the course very interactive.”

 

“Great course. A ‘must attend’.”

Tea Party Divided by Export-Import Bank

William Schubert, president of a small infrastructure export firm outside Houston, identifies himself as a Tea Party Republican. Credit Michael Stravato for The New York Times

Their mission: to rid the firebrand Republican senator of his ardent desire to kill the federal Export-Import Bank, which they said would greatly harm the export-driven small businesses that Mr. Cruz of Texas often extols.

The result: failure.

“At the end of the meeting, there were a lot of angry Texans there,” said Mr. Schubert, who identifies himself as a Tea Party Republican. “We didn’t come there to talk the talking points. We were there to talk the complexities of international trade.”

Senator Ted Cruz of Texas. CreditAlex Wong/Getty Images

In the last two weeks, the battle over whether to save it or let it die has begun in earnest.

For conservatives, frustrated by their failure to overturn the Affordable Care Act or stop President Obama’s immigration policies, killing the Export-Import Bank has taken on enormous importance. They do not have to overcome a presidential veto or beat a Democraticfilibuster. They simply have to refuse to bring it to a vote. Republicans have no excuse, warned Michael A. Needham, chief executive of Heritage Action for America, one of the groups demanding the bank’s demise. “All Congress has to do is nothing, which they have proven themselves to be pretty good at,” he said.

The business leaders who seek a reprieve, many of them Republicans, are in disbelief and are promising retribution.

“Crony capitalism, crony capitalism, that’s all they ever say, over and over again,” said Randy Barsalou, a Republican and an owner of BCH Trading Company, a small lumber exporter in Hot Springs, Ark. Mr. Barsalou is pressing his state’s congressional delegation to support the bank. “If my guys don’t get behind this, I can tell you I won’t be voting for them,” he said.

For Republican lawmakers, the calculation is that killing the bank is not likely to hurt them politically. Powerful business groups like the U.S. Chamber of Commerce and the National Association of Manufacturers might say they ardently support the Export-Import Bank, but other Republican positions on low taxation and light regulation will keep them from exacting a price on Republican lawmakers for the bank’s death. That is one reason Republican presidential hopefuls like Jeb Bush, the former governor of Florida, who once supported the bank, and Gov. Scott Walker of Wisconsin have recently joined Senators Cruz, Rand Paul of Kentucky and Marco Rubio of Florida in embracing its demise.

Still, the chamber, the National Association of Manufacturers, the Aerospace Industries Association and 46 other business associations assembled the Exporters for Ex-Im Coalition. The coalition flew in more than 650 small-business leaders, suppliers and local chambers of commerce members for 400 meetings with representatives, senators, staff members and committee aides on Capitol Hill on Feb. 25.

On Jan. 28, Representative Stephen Fincher of Tennessee introduced legislation to reauthorize the bank for five years, gathering 57 Republican co-sponsors. Heritage Action responded last month with automated telephone calls in the districts of 31 of those Republicans, blasting them for supporting “a slush fund for corporate welfare.”

Business groups and the bank’s biggest beneficiaries, like Boeing, General Electric and Caterpillar, have hired lobbyists and consultants. Conservative groups like the Koch brothers’ Americans for Prosperity are rallying the Tea Party grass roots.

Starting this month, Americans for Prosperity has committed to spending “well into the six-figure range” to kill the bank, said Levi Russell, a spokesman for the group. That will go for television and digital advertising, phone banks, direct mail and activist visits to lawmakers’ Capitol Hill and district offices. The targets are 93 House Republicans who they see as willing to block action on the bank’s reauthorization, enough to commit a majority of the Republican majority to the bank’s demise.

“Before, there were two kinds of people: people who didn’t know it exists and people who love it because they use it,” Mr. Russell said of the bank. “This year, the education component is done. We’re now in position to ramp up the grass roots side.”

Randy Barsalou, an owner of a lumber exporting company, is pressing for support of the bank.Credi tJacob Slaton for The New York Times

So will Club for Growth, a well-financed conservative political action committee, which vowed on Wednesday to back any members of Congress who opposed the Ex-Im Bank if they were attacked by any establishment groups.

On the day of the pro-bank “fly-in,” Representative Jeb Hensarling of Texas, chairman of the House Financial Services Committee, which has jurisdiction over the bank, wrote a letter to all Republican members proclaiming his opposition to its reauthorization and, in effect, telling them not to listen to the business leaders at their doors. Less than 1 percent of 1 percent of small businesses benefit from Export-Import Bank, he wrote, while American taxpayers’ money goes “to help foreign corporations, including businesses that are owned by the governments of China, Russia, Saudi Arabia and the United Arab Emirates.”

“The best way to level the playing field for American exporters and manufacturers is not with taxpayer subsidies, guarantees and politically driven lending, but instead with more opportunity,” he wrote. “A pro-growth agenda — including fundamental tax reform, American energy independence, cutting burdensome red tape and reducing abusive lawsuits — will do more to help our exporters, manufacturers and small businesses than the Export-Import Bank ever could.”

The business leaders who use the bank say they are baffled at such vehemence. The bank operates on fees it charges its users and, so far, has made money for the government. More important, it has created jobs — many of them. The bank contends that through its export financing, it has helped maintain 1.2 million private sector jobs since 2009.

Acrow Corporation of America makes the modular, prefabricated bridges that helped win World War II and now proliferate in developing nations. But customers in countries like Cameroon and Zambia cannot readily get private bank loans for large infrastructure projects without backup. European and Chinese competitors have their own government-backed export credit agencies. Acrow, which is based in Parsippany, N.J., has the Export-Import Bank, said Paul Sullivan, the company’s director of international business development.

“We are already hearing from customers that our competitors are in their offices saying, ‘You cannot rely on an Acrow bridge deal because their financing mechanism is not likely to stay alive,’ ” Mr. Sullivan said. He suggested that the death of the bank would cost 200 jobs, many at Acrow’s manufacturing plant in Pennsylvania. “For us to pull another arrow out of our quiver, it’s irrational, it’s terrifying and it’s inappropriate when one considers the reality of the global marketplace today.”

Mr. Barsalou of BCH Trading uses the Export-Import Bank differently. To finance lumber exports, his company needs upfront cash that customers in Greece and Egypt will not provide, nor will his Wells Fargo Bank, without the Export-Import Bank’s guarantee.

“They say banks should do that,” he said, referring to opponents of the Export-Import Bank. “Well, banks don’t do that, and that’s the reality.”

To the bank’s opponents, such opinions are almost beside the point. Supporters might trot out small-business owners like Mr. Barsalou, but the bank’s big efforts are on behalf of big companies. It is, after all, derisively called the Bank of Boeing.

“I have no doubt Boeing, G.E. and Caterpillar will continue to thrive as great American companies if Ex-Im goes away,” Mr. Needham, of Heritage Action for America, said.

Mr. Hensarling, the chairman of the House Financial Services Committee, has taken to posting the “Egregious Ex-Im Bank Deal of the Day,” like one aiding mining projects in the Democratic Republic of Congo, which he said one human rights group had labeled the “rape capital of the world.”

Mr. Russell, of Americans for Prosperity, said, “Sometimes when you’re the beneficiary of something that’s helping your business, you personally, it’s hard to look at something objectively.”

Here’s how to properly shake hands in 14 different countries

 Business Insider

In Brazil and the United States, a firm handshake is expected. This would be off putting in the UK, as the British like to greet each other with a lighter handshake.

Every country has a unique set of customs, and it is important to recognize and respect cultural differences, especially when conducting business around the world.

We created a helpful guide for handshake etiquette across 14 countries, thanks to information from BBC and Mental Floss:

BI_graphics_handshaking (1)

(Business Insider)

Maintaining Export Advantage in the Face of a Rising Dollar: Part 2

The path to becoming competitive in the international export space.In my previous post, I outlined the first two steps of the five-step framework that would enable U.S. exporters to maintain their competitive edge in the face of rising U.S. dollar, which makes all U.S. goods and services more expensive abroad. Those first steps were to recommit to exports and expand markets served.

Below, I describe the remaining three steps: READ MORE

Faeroe Islands Boom by Selling Salmon to Russia

Tiny territory dodged sanctions between Moscow and West over Ukraine

SØRVÁGUR, Faeroe Islands—As the tit-for-tat economic confrontation between Russia and the West nears its first anniversary, there are plenty of losers: associates of PresidentVladimir Putin barred from going to the U.S., European farmers banned from selling fruit to Russia, and German electrical-equipment companies that have lost a fifth of their Russian sales.

But one winner can be found in the rough sea between Iceland and Scotland: the tiny Faeroe Islands.

Because these 18 wind-swept rocky islands aren’t part of the European Union, the volleys of sanctions and counter-sanctions have passed them by. Russia’s food-import embargo last year retaliating against countries that sanctioned it thus handed the fishing-dependent Faeroes a virtual monopoly in Russia for their biggest export: fresh salmon.

“We are the lucky ones,” said Atli Gregersen, an owner of salmon farming brand Hidden Fjord, who has only been able to supply four of a dozen Russian importers who came to his factory looking for fish.

 Russia’s retaliation against Western sanctions over Ukraine left the Faeroe Islands, a non-EU country, as the only place in the world able to sell Russia large amounts of fresh salmon. Photo: Gareth Phillips for The Wall Street Journal

As Russia and the West descend deeper into a Ukrainian standoff with echoes of the Cold War, countries not involved in the fight are taking advantage of a shifting world order and the Kremlin’s push for new alliances. China has been securing more natural gas from Russia, Turkey might benefit from a new energy pipeline, and Mr. Putin personally promised last week that Moscow would help Egypt develop its nuclear-energy program.

Perhaps the starkest demonstration of just how far-reaching the global economic shifts wrought by the Ukraine crisis have been can be found here in the North Atlantic. The Faeroe Islands are the only major salmon producer in the world that wasn’t hit by Russia’s counter-sanctions last August and is close enough to send fresh fish to Russia by boat and truck.

Since September, Russia, a salmon-loving country of 145 million people, has been importing just about all of its fresh salmon from the Faeroe Islands, which has a population of 50,000. The Faeroes’ salmon sales to Russia totaled 27 million pounds or $79 million from September to December, according to data released Thursday, representing more than 40% of its total salmon exports by value and up from just 7% in that period of 2013. The average price of fresh salmon sent to Russia—around $3.13 a pound at the current exchange rate—was about 25% higher in those four months than the average price of the fresh salmon the Faeroes sold everywhere else, according to government data.

Behind that lucrative spike in exports were months of diplomatic and business maneuvering by the both the Faeroese and the Russians, telling a story of one nation’s scramble to feed its people while it confronts the West—and another’s push for economic gain from the new East-West standoff. The Faeroes’ tale shows that the showdown over Ukraine has turned into a confrontation with global consequences, redrawing trade routes, scrambling alliances, creating new economic winners and losers, and touching off national debates over countries’ allegiances and values.

“People need to have food. Russia needs to have food,” Kaj Leo Holm Johannesen, the Faeroese prime minister, said in an interview, rejecting criticism at home and abroad that his efforts to build ties with Russia amid the crisis have undermined the islands’ traditional bonds with the West.

Hunching forward in his chair and swinging his fist through the air, the 50-year-old former fish salesman added: “Other people can think about something else, but they will never stop us to deliver food. Never.”

The Ukraine crisis brought a new opportunity—and a new test of Faeroese independence and of how it balances trade interests with its Western ties.

A year ago—the night of Feb. 21, 2014—the pro-Russian president of Ukraine, Viktor Yanukovych, fled Kiev after huge protests calling for closer ties with the European Union culminated in deadly violence. As the new government took a pro-European tack, Russia claimed that Russian speakers in eastern Ukraine were threatened. Russia annexed the Ukrainian peninsula of Crimea and, Western leaders say, started fomenting a separatist war in eastern Ukraine.

On July 17, Malaysia Airlines Flight 17 was shot down over eastern Ukraine with 298 people on board. Western governments believed pro-Russian separatists were responsible. The rebels have suggested Ukrainian forces downed the plane. On July 29, amid public outrage over the tragedy, the U.S. and Europe dramatically expanded their sanctions against the Russian economy. Among other things, the U.S. limited transactions with three major Russian state-owned banks while the EU banned trading in certain military-related goods and stopped exports of oil-production technology.

In August, Moscow retaliated, insisting Kiev was at fault for Ukraine’s bloodshed. It banned the imports of a wide range of food products, including fish, from the U.S., Canada, the EU, Norway and Australia. European economies felt the brunt of the pain from the sanctions volley and Russia’s broader economic woes. Germany, for instance, saw its exports to Russia in 2014 fall by around $7 billion—a decline of 18% from 2013. U.S. exports to Russia fell by just $369 million, a 3% drop.

When news of Russia’s retaliation came in, the Faeroe Islands’ Mr. Johannesen said he directed his staff to get an urgent message to Moscow: “We are not part of EU—we are totally outside.”

Faeroe Islands Prime Minister Kaj Leo Holm Johannesen, shown in his office, lobbied hard to expand salmon sales to Russia after Moscow stopped buying the fish from Norway, as part of tit-for-tat sanctions over the Ukraine crisis.
Faeroe Islands Prime Minister Kaj Leo Holm Johannesen, shown in his office, lobbied hard to expand salmon sales to Russia after Moscow stopped buying the fish from Norway, as part of tit-for-tat sanctions over the Ukraine crisis.PHOTO: GARETH PHILLIPS FOR THE WALL STREET JOURNAL

The locals here still speak Faeroese, a Nordic language derived from the tongue spoken by Vikings who settled the islands 1,200 years ago. The islands have been under Danish rule for almost all of the last six centuries, but negotiated a home-rule agreement with Denmark after World War II that grants the Faeroes trade independence while giving Copenhagen control of other aspects of foreign policy, the currency and the legal system. The islands chose not to join the European Union and to make trade policy on their own.

Selling fish through peace and war has long been the Faeroe Islands’ economic lifeblood. The tiny country supplied Great Britain in World War II and signed a fishing agreement with the Soviet Union in the 1970s.

These days, a grid-like underwater glow visible from the coastline highway in the winter darkness is evidence of a more recent boom: salmon farming. The circular pens are sometimes lighted from below to speed up the fish’s internal clocks. The choice salmon specimens sometimes end up sliced into sushi in Midtown Manhattan. The less attractive salmon often goes to fish processors who salt or smoke it. In all, the Faeroes are perhaps more reliant on fishing than any other country. In 2013, fish sales abroad represented 95% of exports and 40% of total economic output.

After Mr. Johannesen’s urgent message, it quickly became clear to the Faeroese that Moscow had no intention of boycotting them. Critical Russian food imports, including around a billion dollars a year of Norwegian fish, had just come to a halt. Trucks filled with fresh salmon were turning around on their way to the Finnish-Russian border.

The Kremlin needed the Faeroe Islands to feed its people—and to underscore the point frequently heard from government officials and state media that Russia could thrive even with reduced ties to Europe and North America.

 
“We had no way out,” said Azamat Yusupov, a supplier to high-end Russian restaurants who had previously relied on Scottish salmon and flew to the Faeroes days after the ban was announced.
Hidden Fjord welcomed Mr. Yusupov with a spread of sashimi and took him out to their marquee salmon farm, a set of roughly 500-foot-diameter rings of netting off the island of Vágar, framed by dramatic, rocky crags.
Mr. Yusupov was sold. He calls Faeroese farmed salmon some of the best he’s eaten and says he would consider staying with it once sanctions lift.
There was just one problem: Hidden Fjord still had no approval from Russia’s veterinary inspection agency, even though the company had first applied back in 2011.
A worker processes fresh salmon at the Hidden Fjord factory in Sørvágur. E
A worker processes fresh salmon at the Hidden Fjord factory in Sørvágur. PHOTO: GARETH PHILLIPS FOR THE WALL STREET JOURNAL

To try to smooth things over for Faeroese exporters, Mr. Johannesen decided to go to Moscow himself. He flew there with two aides on Sept. 7, kicking off one of the more unusual trips in Faeroese diplomatic history. Danish officials lived up to their legal obligations by helping organize the visit—even though the talks would help the Faeroes benefit from Russian sanctions targeting Denmark and others in Europe.

The Danish ambassador invited Mr. Johannesen for dinner at his Moscow residence. Mr. Johannesen brought along Dmitry Dangauer, the chief executive of Russian Sea Group, a fish importing giant. The next day, the Faeroese delegation arrived at the headquarters of Russia’s federal fishing agency to meet a phalanx of government officials and seafood-company executives.

After the meeting, the fishing agency announced that Russia had accelerated veterinary approval of Faeroese fish and promised the customs service would work closely with Faeroese officials.

Mr. Johannesen later told a Faeroese newspaper, “It was an extremely constructive meeting. Maybe one of the best meetings I’ve ever had.”

Danish Foreign Minister Martin Lidegaard said his government understood the Faeroes’ decision to continue exporting fish to Russia. But, he added, Denmark and the EU expected the Faeroes “to refrain from exploiting the situation by significantly increasing their export of goods to Russia that are subject to embargo.”

E

On Sept. 11, Hidden Fjord finally dispatched its first-ever shipment to Russia: 19 tons of salmon bound for St. Petersburg. By thenBakkafrost , the largest Faeroese salmon producer, had received Russian veterinary approval for an additional factory. Its share price on the Oslo stock exchange surged, in part because of Russia, an analyst said. A Danish newspaper noted Bakkafrost’s rally had created the first Faeroese billionaire family as measured in Danish kroner: Bakkafrost CEO Regin Jacobsen and his mother Oddvør, the two largest owners of Bakkafrost stock (although in dollar terms their combined shares are worth just under $200 million).

While Russian imports of frozen Chilean salmon have also surged, just about all of the country’s imported fresh salmon this fall came from the Faeroes, according to Russian government data and research firm Customs Inform.

The future is uncertain: Demand could decline with the fall of the ruble, and Russian officials have signaled they may lift the food embargo in exchange for concessions from the West. The Faeroese hope the premium segment of the market they target will be less affected than the average Russian consumer by economic travails, and that even if Russia ends the embargo, the islands will have won new customers for the long term.

Regardless, for some Faeroese, the sanctions’ economic boon and the prime minister’s efforts to strengthen ties with Russia raised uncomfortable questions. Was the country crossing the line from legitimate economic pursuits to “stabbing the West in the back,” as Sjúrður Skaale, a leading opposition politician here, asked?

Mr. Jacobsen, the Bakkafrost CEO, has said the Russian embargo allowed his company to build up a new customer base and to demand higher prices—but even he voiced concern about actively seeking to boost the Faeroes’ business with Russia during the Ukraine conflict.

“It does not come to the Faeroe Islands to speak out too much in this,” said Mr. Jacobsen. “If we speak out, we should speak out as a part of the West.”

Mr. Johannesen, who became prime minister in 2008, makes no apology for his actions. Asked about Mr. Jacobsen’s criticism, he shot back: “If he should speak as part of the West, then he would not export a kilo to Russia.”

Write to Anton Troianovski at anton.troianovski@wsj.com

Maintaining Export Advantage in the Face of a Rising Dollar – Part 1

It has been a great run for U.S. exporters. The Department of Commerce just announced that our nation’s exports of goods and services were $2.35 trillion in 2014—a record for the fifth year running. Yet clouds are gathering on the horizon, as the economic growth in many foreign markets, specifically those in the emerging and frontier category, has been slowing. Some markets like Russia and Ukraine are set to experience outright GDP contractions brought on by political upheaval.

The single biggest threat facing U.S. exporters is ironically the rising U.S. dollar, which continues to strengthen significantly as the result of the improvement of U.S. economy in the face of the international weakness.

How can U.S. exporters maintain their competitive position and continue to play a leading role in the international export space?strategies for US exporters

While there is no magic bullet and the process is a comprehensive long-term endeavor, below, most U.S. exporters can use the following five-step approach to maintain and expand their exports, while swimming upstream against the rising dollar:

  • Recommit to exports
  • Expand the markets served
  • Offer open account terms and buyer financing
  • Reduce focus on price
  • Use available resources more effectively

Recommit to exports.

Despite its undisputed success in the export arena, the U.S. as a nation has been a very anemic exporter. Unlike in countries such as Germany, the Netherlands or Chile, where exports have for years been part of the business’ DNA due to the small size of the home markets, a great number of companies in the U.S. have been treating exports as an afterthought to their domestic sales strategies. Other than the Fortune 500 companies, the majority of U.S. companies export to fewer than three markets. The primary export drivers are either organic demand from overseas, natural affinity of the owners to a particular country, commonality of language or geographic proximity.
In good times, as we know, the tide raises all boats, yet in the face of the upcoming slowdown, it is vital that U.S. companies recommit to exports in a strategic fashion.

To succeed in this endeavor, U.S. firms must make exports an integral part of their sales mix. Whether through building internal export departments or outsourcing to export management firms, the focus on international sales must be relentless and deep. Companies developing or expanding their in-house export departments should invest in training, product adaptation, international network and market analytics. Managers responsible for exports in organizations, along with top management, must make ongoing efforts to follow events in target markets and understand the culture and business customs and attempt to learn as much of the foreign language as possible.  Departments not directly involved in exports should undergo inclusionary training to ensure that exports do not become orphans within the organization when it comes to issues such as service, exchanges, spare parts supply, collections, payments and financing.  READ MORE

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