AIG Signs Consulting Pact With Russians

New York-based AIG said the agreement that was signed is a cooperative memorandum with the State Committee of the Russian Federation for Construction, Housing Complex known as Gosstroy.

A portion of the agreement calls for Gosstroy to consult with AIG companies on policy legislation and other actions related to the development of the Russian housing finance system, the company said.

It was explained that areas of particular concern include risk management practices and techniques, mortgage guaranty insurance, secondary mortgage market policies and institutions, securitizations and public-private partnerships in the provision of housing-related insurance products.

Financial terms of the agreement were not made public. AIG said it would also provide counsel and assist in the development of a mortgage credit guaranty system in Russia, based on public-private partnerships.

An AIG spokesperson, Andrew Silver, said the company has had a presence in Russia since the late 80s with offices in Moscow and St. Petersburg, selling life and property-casualty products.

Mr. Greenberg, in the statement issued today, said AIG believes "the present environment is a favorable one for furthering our business relationships in the region. We are pleased to work with Gosstroy to identify new financial services and insurance options that will facilitate home ownership and benefit the Russian people."

American and Russian news outlets reported that Mr. Putin welcomed AIG plans to invest in development of Russia's mortgage system and expressed a hope that U.S. corporations will increase their investments in his country.

Mr. Greenberg was reported to have said that his company has invested millions in the Russian economy in the course of its operations there and more investments are under consideration.