Funds of exporters stuck in Russian bank: Islamabad makes feeble attempt to recover $4.47 million

The federal government has reportedly made half-hearted effort to recover millions of dollars stuck up payments of Pakistani exporters from EEFC Bank, Saint Petersburg, Russia, which dishonoured their Letters of Credit (L/Cs).
Azhar Majeed Sheikh, Vice-President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) wrote a letter to the Commerce Minister, intimating about an outstanding issue of stuck up payments amounting to $4,469,741.14 of five Pakistani exporters for shipments made to Russia during June-August 2008 against various L/Cs issued by EEFC Bank of Saint Petersburg (now renamed as Bank Petrovsky PLC).
The Federation claims that when shipment documents were sent to the Bank, they were duly accepted by them. Accordingly, EEFC Bank gave a confirmed maturity date of payment through an MT SWIFT message. On maturity date, however, the payments were not made by the Bank. Pakistani banks concerned approached the L/C opening bank regarding payments due under L/Cs, but the bank refused to make the payment on the ground that their client has not made payment to them and thus they did not make the payment to Pakistani shippers against L/Cs opened by them.
According to FPCCI, non-payment against L/Cs is a breach of commitment by the Russian Bank. This is against fundamentals of L/C and distrust on banking system harmful for international trade.
Between 2008 and 2011, the affected exporters have been running from pillar to post and they have knocked doors of every agency concerned such as the Central Bank of Russia, EEFC Bank (L/C Opening Bank), Foreign Exchange Control Department of Russia, Head of Department of Financial Recovery of Credit Organisation of Russia, Pakistan Embassy in Russia, Embassy of Russia in Pakistan, the Ministries of Commerce, Finance, the State Bank of Pakistan and all agencies concerned in Pakistan and Russia for the redressal of their grievances.
So far, they have not been able to make any headway.
Foreign exchange involved in these L/Cs ($4,469,741) is a substantial amount, especially for individual exporters, and the State Bank has, so far, not succeeded in getting hold of the Russian Bank to resolve this impasse.
The FPCCI requested the Ministry Commerce to take up the issue afresh on government-to-government level to support the exporters and bring the much-needed foreign exchange to the national exchequer.