NEW DELHI (Commodity Online): An MoU signed between National Spot Exchange Ltd (NSEL) and Bealrusian Universal Commodity Exchange (BUCE), the largest commodity spot exchange in Republic of Belarus may pave the the way for increased trade between India and Eastern European countries, according to NSEL>

The MoU was signed on Wednesday here in the presence of a delegation from the Republic of Belarus led by His Excellency Dr. Mikhail Myasnikovich,Hon’ble Prime Minister of the Republic of Belarus.

Signing of this MoU is of significant importance for developing bilateral deals between India and Eastern European countries, especially Republic of Belarus, Russia, Ukraine, Kazakhstan, etc. This will enable Indian producers to explore the possibility of exporting their produce to Eastern European countries through BUCE’s network. While BUCE will provide counter party guarantee with respect to the buyers from Eastern Europe, NSEL will provide similar guarantee in respect of exporters from India

The Memorandum of Understanding was signed by Mr. Anjani Sinha, MD & CEO, National Spot Exchange, India and Mr. Arkady Salikov, Chairman of the Board, Belarusian Universal Commodity Exchange.

Hence, through the combined network of NSEL and BUCE, it would be feasible for the Indian exporters and importers to transact with European buyers and sellers in a transparent manner without any credit risk. Since BUCE has its membership in 56 countries and more than 12000 companies are connected with their network, this MoU would provide a strong marketing support to Indian exporters and importers.

It is also a fact that there are very few instances of successful business model of Electronic Spot Exchanges in the world and NSEL and BUCE are the leading entities in this area. Hence, the strategic tie up between these two Spot Exchanges will create a significant synergy for both the Spot Exchanges to learn from each other’s experience.

Speaking on this grand occasion, Mr Anjani Sinha, MD & CEO, National Spot Exchange said, “We are confident that the association of NSEL and BUCE will help in strengthening international trade between India and Belarus as well as other eastern European nations. This will create a significant value addition for Indian importers and exporters to execute bi-lateral deals through Spot Exchange platform. The trades routed through the Spot Exchange on both sides will be totally transparent, as they will be executed through electronic platforms. They will also be free from credit risk, as the respective spot exchanges will guarantee performance of the counter party. This will provide a golden opportunity for Indian exporters and importers looking at expanding their business with Eastern European countries.”

Mr. Arkady Salikov, the Chairman of the Board of the Belarusian Universal Commodity Exchange said “BUCE has prominent presence in the Eastern & Central Europe and clients from 56 nations and now the association with NSEL has opened the trade opportunity with Southeast Asian Nations.”