Buyback

From Supply Chain Management Encyclopedia

Russian: Байбэк

Buyback or compensation: involves repayment in the form of goods derived from directly from, or produced by, the technology, plant, or equipment provided by the seller. A buyback occurs when a firm builds a plant in a country--or supplies technology, equipment, training, or other services to the country--and agrees to take a certain percentage of the plant's output as partial payment for the contract. For example, Occidental Petroleum negotiated a deal with the former Soviet Union under which Occidental would build several ammonia plants in the Soviet Union and as partial payment receive ammonia over a 20 - year period