Study on Sourcing Opportunities in Russia by Mark Aldein

Dragon Sourcing Your Tailored Approach to Emerging Markets

Study on Sourcing Opportunities in Russia

Aug, 2018 www.dragonsourcing.com

Table of Contents  

Executive Summary Russia – An Overview

 

Russia – Country Overview

Trade Statistics

 

Export & Import Trade Statistics Top Export Categories

          

Mineral fuels including oil Iron, steel Gems, precious metals Machinery including computers Wood Cereals Fertilizers Aluminum Copper Electrical machinery, equipment

Trade Agreements

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Executive Summary (1/2) Category

2017 Export HS Value in Code USD Billion

Russia’s share of Global Exports (2017)

Category‘s share of Total Russia’s Exports (2017)

Mineral Fuel

173.3

8,9%

48,5%

Iron, steel

18.8

5,1%

5,3%

1.7%

3,1%

8,5

0,4%

2,4%

Wood

7,9

5,8%

2,2%

Cereals

7,5

7,3%

2,1%

Fertilizers

7,2

14,2%

Aluminum

6,7

3,8%

1,9%

Gems, precious metals Machinery including computers

Top Products

Copper, refined, and copper alloys. Copper wire Copper mattes; cement copper Telephone sets, incl. telephones for cellular networks or for other wireless networks; Radar apparatus, radio navigational aid apparatus and radio remote control apparatus Monitors and projectors, not incorporating television reception apparatus

Top Export Destinations

Import Duty Import Duty into US into EU

Netherlands, Kuwait, Greece

1,1%

1,5%

Belarus, Kazakhstan, China

0,7%

1,6%

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RUSSIA – AN OVERVIEW

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Russia – Country Overview Country Facts (2017) Population

Country Ranking (out of 190) Comparison

144.5 million

GDP

USD 1.577 trillion

Annual GDP Growth

Country Indicators

1.5%

Country Indicators

RUS

Ease of Doing Business

Time to import (days)

TJK

123

SMR

BIH

KGZ

Explanation

Lack of regulatory transparency in Russia introduces significant uncertainty into the process of running a business.

Score/ Value

Global Competitiveness Index Score

4.64

Macroeconomic environment Score

5.03

Labor Market Efficiency Score

4.33

Domestic market size index

5.9

Business Sophistication Score

3.97

Note: Global Competitiveness Index (1-7 Best) - 38th Place

Document s to import (number)

N/A

Calendar days

Documents required for clearance by government ministries, customs authorities, port and container terminal authorities, health and technical control agencies and banks are taken into account

Note: Country ISO codes RUS: Russia, TJK: Tajikistan, SMR: San Marino, BIH: Bosnia and Herzegovina, KGZ: Kyrgyzstan.

Corruption, Tax Rates, Access to financing are considered to be the most problematic factors for doing business in Russia



Political Outlook: Russia’s political risk index is 66.5 (indicating moderate stability) in 2018. Russia has transformed to a more marketbased system from a centrally planned economy. Also, economic reforms have been subordinated to the imperatives of political stability and government longevity.



Economic Overview: With the Government’s plan to increase VAT from 18% in 2018 to 20% in 2019, GDP is expected to grow at 1.4% in 2019. Industry represents over 32% of Russia's GDP and employs nearly 28% of the population.



Situation with investments: FDI ﬂows into Russia have been declining rapidly since 2014, because of geopolitical tensions between Russia, Ukraine and the Western countries. In 2016, FDI ﬂows raised up again, reaching USD 37.7 billion, mainly as a result of the privatization of the Rosneft oil company. During the most, first part of 2017, FDI declined up to USD 24.83 billion. The share of FDI in the GDP (1.5%) has remained low, in general view of the country's growth and economic potential, and working capital investments represent a large share of overall FDI.

Source: Countryeconomy.com, Wikipedia.org, Weforum.org, Doingbusiness.org, Indexmundi.com, heritage.com,. Controlrisks.com, Focuseconomics.com, Worldbank.org, Santandertrade.com © 2018 Dragon Sourcing. All rights reserved.

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TRADE STATISTICS

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Export & Import Trade Statistics Russia Import/Export yearly comparison 400.00 350.00

359.15

343.91

250.00 200.00

228.21 182.78

182.26

150.00

 

30.00

28.02

29.25 25.73

25.00

21.26

19.38

20.00 14.05

18.21 13.70

5.00 2015 (Bi l l i on USD) 2016 (Bi l l i on USD) 2017 (Bi l l i on USD) Export



35.61

10.00

50.00



38.90

40.00

15.00

100.00

0.00

45.00

35.00

285.49

300.00

Top Importing Markets for products exported by Russia (in USD Billion)

0.00

Import

Chi na

Netherla nds

Germa ny

2016 (Bil li on USD)

Bel a rus

Turkey

2017 (Bl l i on USD)

The total export of Russia in 2017 was around USD 359 billions, and import was about USD 228 billions, resulting in a positive trade balance of USD 131 billions Top 3 categories for export in 2017 were: Mineral fuels including oil: USD 173.3 billions (48.5% of total exports); Iron, steel: USD 18.8 billions (5.3%); Gems, precious metals: USD 11 billions (3.1%). Top 3 categories for import in 2017 were: Machinery including computers: USD 45.3 billions (20% of total imports); Electrical machinery, equipment: USD 26.7 billions (11.8%); Vehicles: USD 21.4 billions (9.4%). Russia has highly positive exports volume in the international trade of both crude and refined oil. In terms of import subcategories, Russia mainly buys heavy machinery like bulldozers and excavators (up 107%), computer parts or accessories (up 89.2%) and computers including optical readers (up 33.3%) from 2016 to 2017. China, Netherlands and Germany are the top, importing markets for Russia.

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Top Export Categories Top 10 export categories contribute to about 70% of the total export value from Russia

Top Export Categories from Russia (Values in USD Billion) Electri cal ma chinery, equi pme nt

4.32 4.05

Copper

4.71 3.31

Alumi num

6.67 5.98

Fertil izers

7.22 6.64

Cerea l s

7.53 5.61

Wood

7.90 6.52

Ma chi nery i ncl uding computers

8.54 6.80

Gems , preci ous meta l s

11.05 8.91

Iron, steel

18.76 14.12

Mineral fuels i ncl udi ng oil 0.0

173.30

134.70 20.0

40.0

60.0

80.0

100.0

2016 (Bi l li on USD)

120.0

140.0

160.0

180.0

200.0

2017 (Bl l i on USD)

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Mineral fuels including oil (HS 27)(1/2) Export of HS 27 category from Russia (Billion USD)

2017 (Global export share in terms of HS 27 category %) 8.9

400.0 8.8

350.0

372.0

300.0

7.1

250.0

4.5

200.0

4.4

66.3

346.1

216.1 173.3 134.7

150.0 100.0 50.0

Rus s i a Uni ted Ara b Emi rates

Sa udi Ara bi a Ca na da

USA Rest of the worl d

0.0

Top Importers of HS 27 category from Russia (Billion USD) 35.0 30.0 25.0

29.3

2016

2015

2014

2013

Top Exported Products in this Category

    

31.5

23.8

2017

25.2

Petroleum oils Coal Petroleum gas Electrical energy Coke and semi-coke of coal

17.918.9

20.0 15.0

11.7

10.0

9.0

10.9

9.0

10.6 7.4

8.3

6.3

7.6

5.0 0.0

Netherl ands

Chi na

Germa ny 2017

2016

Republi c of Korea

Pol a nd

2015

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Mineral fuels including oil (HS 27)(2/2)



According to the latest customs data of Russia (for the first quarter of 2018), mineral products category counted for 54% of total export volume of Russia which was 102 billions USD for the same period.



For the first quarter of 2018, China (17%), Netherlands (16%) and Germany (7%) were the key importers of mineral products category.



Major petroleum reserves and production are located in Ural area of Russia. Reserves also can be found in SouthWestern part of Russia.



Key, exporting companies in terms of mineral fuels are: Rosneft, Gazprom, Lukoil (As per latest, available, ranking list, formed in 2016).

Vorkuta

Perm Samara UFA

Major Petroleum Reserves in Russia City’s location on the map

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Iron, steel (HS 72) (1/2) Export of HS 72 category from Russia (Billion USD)

2017 (Global export share in terms of HS 72 category %) 11.6

25.0 7.5

20.0

18.8

7.1

14.1

15.0

20.6

20.1

2014

2013

15.2

6.0

62.7

10.0

5.1

5.0 Chi na Republ i c of Korea

Japa n Rus s i an Federation

Germa ny Rest of the worl d

0.0

    

3.5 2.6 2.8 1.6

1.5

0.8 1.0 ey rk u T

i Un

d te

es at t S

i ca er i Ta

2017

n hi ,C

1.0 0.9

2016

1.3

l Be

0.8 0.8

us ar

1.1

2016

2015

Top Exported Products in this Category

Top Importers of HS 72 category from Russia (Billion USD) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

2017

Iron or non-alloy steel Pig iron and spiegeleisen Ferro-alloys Ferrous waste and scrap Flat-rolled products of iron or non-alloy steel

0.7 0.7

i co ex M

2015

Source: International Trade Centre 12

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Iron, steel (HS 72) (2/2)



According to the latest customs data of Russia (for the first quarter of 2018), metals and their products category accounted for 11% of total export volume of Russia, which was 102 billions USD for the same period.



For the first quarter of 2018, Turkey (14%), USA (11%), Netherlands (9%) were the key importers of metals and their products category.



Russian iron and steel industry production is mainly located around UFA and Orenburg cities in Russia – Middle-South part of Russia.



Key, exporting companies in terms of metals are: Norilskiy Nikel, Rusal and UGMK Group (As per latest, available, ranking list, formed in 2016).

St.Petersburg

UFA Orenburg

Major iron and steel production areas of Russia City’s location on the map

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Gems, precious metals (HS 71)(1/2) 2017 (Global export share in terms of HS 71 category %)

Export of HS 71 category from Russia (Billion USD)

13.7

16.0

14.3

14.0 13.3

12.0 10.0

60.3

11.8

11.0 8.9

8.0

9.5

7.9

6.0 6.7

4.0

6.0 Chi na , Hong Kong Indi a

Swi tzerl and Uni ted Ara b Emi rates

2.0 0.0

Uni ted States of Ameri ca Rest of the worl d

2017

2016

2015

2014

2013

Top Exported Products in this Category

Top Importers of HS 71 category from Russia (Billion USD)

    

3.5 3.0 2.5

2.9 2.8 2.3

2.0

1.6

1.4

1.5

0.5

1.3 0.9

0.8

1.0

0.0

Diamonds Platinum Gold Silver Precious and semi-precious stones

1.0 0.9 1.0

0.8

0.6

0.5

0.1 Bel gi um

Uni ted Ki ngdom Swi tzerl and 2017

2016

Indi a Uni ted States of Ameri ca 2015

Source: International Trade Centre 14

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Gems, precious metals (HS 71)(2/2)



According to the latest customs data of Russia (for the first quarter of 2018), gems category counted for 3% of total export volume of Russia, which was 102 billions USD for the same period.



For the first quarter of 2018, Belgium (35%), India (13%) and England (11%) were the key importers of gems category.



Precious metals resources are mainly located in the Middle and Eastern parts of Russia.



The key, exporting companies of gems category are: Aprosa, Company Adamas, Polymetal (As per latest, available, ranking list, formed in 2016).

Yakutsk

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Machinery including computers (HS 84) (1/2) 2017 (Global export share in terms of HS 84 category %)

Export of HS 84 category from Russia (Billion USD) 10.0

18.4

9.0 8.0 11.8

8.9

6.8

7.0 48.7

9.3

8.7

8.5

6.0 5.0 4.0

9.7

Germa ny Ital y

2.0

6.6

4.8 Chi na Ja pa n

3.0 1.0 0.0

Uni ted States of Ameri ca Rest of the worl d

1.6 1.4 1.2

1.6

    

1.5 1.2 1.0

1.0

0.9

2016

2015

2014

2013

Top Exported Products in this Category

Top Importers of HS 84 category from Russia (Billion USD) 1.8

2017

Turbojets, turbopropellers and other gas turbines Nuclear reactors Machinery, plant or laboratory equipment Engines and motors Pumps for liquids

1.0

0.8

0.6 0.6

0.6

0.7

0.6

0.5

0.6 0.7

0.8

0.4 0.2 0.0

Chi na

Ka zakhstan

Bel arus 2017

2016

Indi a

Ukra i ne

2015

Source: International Trade Centre 16

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Machinery including computers (HS 84) (2/2)

The main machinery production area of Russia is focused in Western Part, close to Moscow.



According to the latest customs data of Russia (for the first quarter of 2018), machinery products category accounted for 2% of total export volume of Russia, which was 102 billions USD for the same period.



For the first quarter of 2018, Belarus (16%), Kazakhstan (14%), India (11%) were the key importers of machinery products category.



Russia produces a wide range of machines, appliances and devices for international consumers. For example, Europe imports mill machinery made by Altai company CSort. Its color sorting machines are well sold in Poland, France, Germany, Spain. St. Petersburg-based company Unicum Vending produces vending machines that are in demand abroad. The company’s online telemetry and remote quality control systems were well sold in the UK: Unicum Vending received a government contract to supply vending equipment to the country.



Cryogenmash plant, which is based close to Moscow, manufactures cryogenic units, pipelines and systems, which are well exported to China and India. Systems designed by Cryogenmash are used at spaceports all over the world.

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Wood (HS 44) (1/2) Export of HS 44 category from Russia (Billion USD)

2017 (Global export share in terms of HS 44 category %) 10.3

9.0 7.0

7.8 6.5

6.3

2016

2015

7.3

6.0

7.1 60.2

7.9

8.0

10.0

5.0 4.0

6.6

3.0 5.8

2.0 1.0

Ca na da Germa ny

Chi na Rus s i a n Federation

0.0

Uni ted States of Ameri ca Rest of the worl d

3.0 2.5

2014

2013

Top Exported Products in this Category

Top Importers of HS 44 category from Russia (Billion USD) 3.5

2017

    

3.3 2.6

Wood sawn or chipped lengthwise, sliced or peeled Wood in the rough, whether or not stripped of bark or sapwood Plywood, veneered panel and similar laminated wood Fibreboard of wood or other ligneous materials Particle board, oriented strand board "OSB" and similar board

2.2

2.0 1.5 1.0 0.5 0.0

Chi na

0.5 0.4 0.3

0.5 0.4 0.4

0.4 0.3 0.3

Ja pa n

Fi nl a nd

Uzbeki sta n

2017

2016

0.3 0.3

0.4

Egypt

2015

Source: International Trade Centre 18

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Wood (HS 44) (2/2)



According to the latest customs data of Russia (for the first quarter of 2018), wood category accounted for 2% of total export volume of Russia, which was 102 billions USD for the same period.



For the first quarter of 2018, China (42%), Japan (5%), Uzbekistan (5%) were the key importers of wood category products.



Russian Federation, possesses around 815 million hectares of forest and other wooded land, which constitutes to 49.8% of the total land area. Around 795 million hectares are primary (33,5%) or otherwise naturally regenerated forest (64.1%), and the remaining part of 20 million hectares is planted.



The key, exporting companies of wood category are: Ilim Group, Segezha Group, Sveza Group (As per latest, available, ranking list, formed in 2016).

Biggest forest resources areas of Russia

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Cereals (HS 10)(1/2) 2017 (Global export share in terms of HS 10 category %)

Export of HS 10 category from Russia (Billion USD)

18.2

8.0

7.5

7.1

7.0 5.6

6.0

7.3

5.7 4.8

5.0

54.1

7.2

4.0 3.0

6.8

2.0

6.4

1.0 Uni ted States of Ameri ca Argentina

Rus s i a n Federation Austra l i a

Indi a Rest of the worl d

0.0

1.4 1.2 1.0

1.0 0.8

2015

2014

2013

Wheat and meslin Maize or corn Barley Rice Buckwheat, millet, canary seed and other cereals

0.8

0.8 0.6

0.6

0.4 0.3

0.4

0.3 0.3

0.3 0.1

0.2 0.0

    

1.4

0.8

2016

Top Exported Products in this Category

Top Importers of HS 10 category from Russia (Billion USD) 1.6

2017

Egypt

Turkey

Ira n 2017

2016

Ba ngl a des h

0.0 0.0 Vi etnam

2015

Source: International Trade Centre 20

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Cereals (HS 10)(2/2) 

According to the latest customs data of Russia (for the first quarter of 2018), cereals category products accounted for 3% of total export volume of Russia, which was 102 billions USD for the same period.



Russia’s total 2017-18 grains exports was at 41.8 million tonnes, which makes the country the second largest exporter in the world, after the United States. Its total grains exports in 2016-17 was 36.2 million tonnes. The total for 2017-18 includes wheat exports of 32 million tonnes, up in comparison to previous year’s 28 million. Russia’s maize exports in 2017-18 was put at 5.6 million tonnes, up from 5.3 million the year before. Russian barley exports in 2017-18 was around 4.1 million tonnes, of which 4 million would be feed, up from 2.8 million, of which 100,000 were feed, the year before.



Egypt (19% Q1 2018) and Turkey (16% Q1 2018) are the main markets for Russian wheat exports, although Russian exporters are actively trying to develop other markets for Russian wheat



Most grain crops processed in Russia are based on lowcost agro-technologies with a minimum use of agrochemicals. The production is mainly focused in South-West part of Russia



In July 2018, the key exporters of cereals in Russia were: TD Rif, Glenkor, Aston.

Cereals, production zones in Russia

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Fertilizers (HS 31)(1/2) Export of HS 31 category from Russia (Billion USD)

2017 (Global export share in terms of HS 31 category %) 14.2

10.0 9.0 8.0

12.0

7.0

7.2

8.9

9.0

9.1

2015

2014

2013

6.6

6.0

52.1

5.0

9.0

4.0 3.0

7.6

2.0

5.1 Rus s i an Federation Uni ted States of Ameri ca

Chi na Morocco

1.0 0.0

Canada Rest of the worl d

2017

2016

Top Exported Products in this Category

Top Importers of HS 31 category from Russia (Billion USD)

    

1.8 1.6 1.4 1.2

1.6

1.4 1.2

1.1

1.0 0.7

0.8

0.7

0.5 0.5

0.6

Mineral or chemical fertilizers Mineral or chemical nitrogenous fertilizers Mineral or chemical potassic fertilizers Animal or vegetable fertilizers Mineral or chemical phosphatic fertilizers

0.7

0.8 0.6

0.6 0.5

0.4

0.3 0.3

0.2 0.0

Brazi l

Ukrai ne

Chi na 2017

2016

USA

Indi a

2015

Source: International Trade Centre 22

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Fertilizers (HS 31)(2/2)

Major, production zone of fertilizers in Russia



Export of fertilizers from Russia is growing: In January 2018 it was about 200,3 millions USD which is 30,3% higher in comparison to the same amount in 2017.



The key, importing partners of Russia in terms of fertilizers market in 2018 are: China, Ukraine, Estonia, Latvia, Brazil, Poland. 63% of all chemical products exported from Russia have final destination in the above countries.



Russia has positioned itself as a large and reliable exporter of MAP/DAP, NPK, ammonia, urea, AN and potash (MOP). The Country is self-sufficient for all its requirements of nitrogen products. Russia is also the world's second largest ammonia and potash exporter. About to 85% of potash production is exported. The country is endowed with significant reserves of natural gas, phosphate and potash, providing the impetus for major capacity developments in all segments over the next decade.



There are several, global producers and key exporters of fertilizers, located in western part of Russia, mainly in Moscow and Moskovskaya oblast: Acron, Phosagro, Uralchem etc.

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Aluminum (HS 76)(1/2) 2017 (Global export share in terms of HS 76 category %)

Export of HS 76 category from Russia (Billion USD)

12.8

7.4 7.2

9.3

7.0 6.8

6.6 60.7

7.1

7.1 6.7

6.6 6.3

6.4

5.6

6.2

5.0

6.0

5.8 Chi na Canada

Germany Netherl a nds

5.6

Uni ted States of Ameri ca Rest of the worl d

5.4

Top Exported Products in this Category

Top Importers of HS 76 category from Russia (Billion USD) 2.0 1.8

    

1.8 1.7

1.6

Unwrought aluminium Aluminium wire Plates, sheets and strip, of aluminium Bars, rods and profiles, of aluminium Aluminium foil

1.4 1.1

1.2 1.0

1.0

0.9

0.8

0.7

0.7 0.8

0.6

0.5 0.4

0.4

0.5 0.3

0.2 0.0

USA

Turkey

Japan 2017

2016

Netherl ands Republi c of Korea 2015

Source: International Trade Centre 24

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Aluminum (HS 76)(2/2)

Murmansk



Export of aluminum from Russia in January-June 2018 accounted for 2,8 billions USD which is 32,1% higher in comparison to the same period in 2017.



According to the latest report, formed in 2017, USA was the key importer of Russian aluminum with 27% from total export. Second and third, key aluminum importers were Turkey (13,8%) and Japan (12,3%).



UC Rusal is the biggest aluminum producer of the Russian Federation.



Because of the political situation in the world, in 2018 and sanctions, applied from the side of USA government in terms of Rusal company and it’s owner Oleg Deripaska the total aluminum export of Russia might decrease on 5-10% in 2018. However, as per forecasts of industry experts, the negative influence of sanctions can be overcome in 2019 because of increasing demand of aluminum from the side of China and local, Russian market.



The nine primary aluminum smelting plants are owned by producer - Rusal. With low energy cost in Russia, these plants are very efficient The Rusal is the key and biggest exporter of aluminum from Russia.

St.Petersburg

Volgograd

Rusal’s production zones all over Russia.

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Copper (HS 74)(1/2) Export of HS 74 category from Russia (Billion USD)

2017 (Global export share in terms of HS 74 category %) 12.1

6.0 8.4

65.1

5.0

5.1

4.0

4.9

3.0

4.4

4.7

4.5

4.9

5.0

2014

2013

3.3

2.0 1.0

Chi l e Uni ted States of Ameri ca

Germany Chi na

Japan Rest of the worl d

0.0

2.0

2016

2015

Top Exported Products in this Category

Top Importers of HS 74 category from Russia (Billion USD) 2.5

2017

    

2.4 1.8

Copper, refined, and copper alloys Copper wire Copper mattes; cement copper Powders and flakes, of copper Bars, rods and profiles, of copper

1.5 1.1 1.0 0.7 0.5 0.0

0.5 0.5

0.5

0.2 0.0 Netherl ands

Kuwai t

Greece 2017

2016

0.0

0.1

Chi na

0.3 0.2

0.1

Swi tzerl a nd

2015

Source: International Trade Centre 26

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Copper (HS 74)(2/2) 

According to the latest customs data of Russia (for the first quarter of 2018), export of copper category products accounted for 1,97 billions USD which is 52,5% higher in comparison to the same period in 2017.



According to the latest report, formed in 2017, the key countries-importers of copper category products from Russia were: Netherlands (40,8% of total, Russian export), Kuwait (13,4% of total, Russian export), Greece and China (10,2% for China and 9,5% for Greece of total, Russian export).



Russia's copper reserves are mainly located in Siberia (70 percent) and the Urals (20 percent). A large percentage of Russian reserves are in the remote northern and eastern regions, away from major populations and infrastructure.



Russia's copper deposits are various in size and composed of a variety of mineral types. The copper deposits in the country include ultramafic/mafic intrusion-hosted, VMS, SEDEX, stratabound sedimentary rock-hosted, porphyry and skarn.The well-known and large-sized copper deposits in Russia include: the Udokan, Talnakh, Podolsk.



The Key, exporters are: Norilskiy Nikel, Russkaya Mednaya Compania, Uralskiy GMK.

Talnakh Podolsk Udokan

Main, copper, mining zones in Russia City’s location on the map

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Electrical machinery, equipment (HS 85) (1/2) 2017 (Global export share in terms of HS 85 category %)

Export of HS 85 category from Russia (Billion USD) 6.0

23.3

5.0 46.7

4.0 11.0

Chi na, Hong Kong Germa ny

2014

2013

4.0 3.5

2.0

6.4

5.8

5.0

3.0

6.8

Chi na Republ i c of Korea

4.3

4.9

1.0 Uni ted States of Ameri ca Rest of the worl d

0.0

2017

2016

2015

Top Exported Products in this Category

Top Importers of HS 85 category from Russia (Billion USD) 0.8

0.7

0.7 0.6 0.5

0.6



0.6

0.6 0.6



0.5



0.4

0.3 0.3

0.3

Telephone sets Radar apparatus, radio navigational aid apparatus and radio remote control apparatus Monitors and projectors, not incorporating television reception apparatus; reception apparatus Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other insulated Electrical machines and apparatus, having individual functions

0.4 0.2

0.2

0.2 0.2

0.1

0.1 0.0

 

Bel a rus

Kaza khsta n

Chi na 2017

2016

Indi a

Ukrai ne

2015

Source: International Trade Centre 28

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Electrical machinery, equipment (HS 85) (2/2)



According to the latest customs data of Russia (for the first quarter of 2018), export of electrical machinery category products accounted for 2,52 billions USD which is close to the amount exported in first quarter of 2017.



Belarus (16%) and Kazakhstan (14%) are the key importers of electrical machinery category products in Q1 2018.



The main production area of electrical machinery and equipment is located in Western part of Russia, in Moscow and Moskovskaya oblast.



The key producing companies of electrical machinery and equipment are: Cheaz, Ekra, Ekoresurs.

Major production zone of Russia

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TRADE AGREEMENTS

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Russia â&#x20AC;&#x201C; Trade Agreements Russia has 7 agreements at the moment:

Agreements

Region/ Countries Involved

Europe, USA, Canada

Currently, nine countries (Russia, Belarus, Ukraine, Moldova, Tajikistan, Armenia, Kazakhstan, Kyrgyzstan, and Uzbekistan) from the Commonwealth of Independent States (CIS) ratified a Free Trade Agreement (FTA), which provides the free movement of goods within the territory of the member states. Also Russia has agreement about partnership and trading with EU members. Plus Russia has USSR, trade agreement with USA and trade and commercial relationships agreement with Canada. Russia is a member of agreement about free trade zone creation plus contract about Eurasian Economic Community.

Other Trade Agreements Asia

Russia has active trading agreement between USSR and Japan.