IMPORT

EXPORT

In August 2012, Russia became a member of the World Trade Organization (WTO), lowering the average bound tariff rate on industrial and consumer goods, from almost 10% in 2011 to 7.8% by 2017. Russia’s WTO Accession Protocol establishes tariff rate quotas (TRQ’s) for agricultural goods such as beef, pork, poultry, and some other products. Imports entering the market within the quota would enjoy lower tariffs, while imports outside of the quota would face higher tariffs.

On January 1, 2015, the Eurasian Economic Union (EAEU) was launched, incorporating the tariff regulations previously set forth in the Russia-Belarus-Kazakhstan Customs Union (CU) established in 2010. Armenia's accession into the EAEU came into force on January 2, 2015, while Kyrgyzstan's accession came into effect on August 6, 2015. The Unified Customs Tariff of the EAEU/CU has undergone periodic revision since 2011, with the rates of import customs duties now set in accordance with the obligations outlined in Russia’s WTO Accession Protocol. All issues such as tariffs, tariff rate quotas, technical regulations, licensing, and certification are being harmonised by the Eurasian Economic Commission (EEC), the multilateral entity originally established by the member countries to manage the Customs Union which now oversees the Eurasian Economic Union.

In addition to Customs duties, import excise taxes may be applied for limited categories of products, such as luxury goods, alcohol and tobacco products, cars, diesel and motor oil, and other petroleum products. Import excise taxes range from 20% to 570%.

Value Added Tax (VAT) is applied to the sum total of the Customs value, the Customs duty, and any excise tax. Russian Customs VAT is levied at the same rates as Russian sales VAT – generally 18% for most goods, works, and services. A 10 % rate applies to certain food products, children’s goods, medical and pharmaceutical products, pedigree livestock, and certain books and periodicals. Some categories (e.g. medical goods and equipment, goods designated for diplomatic corps) may be VAT exempt.

Сlose trade relationship between Russia and China is based on very large consumption markets in both countries. Due to the economic restrictions imposed by Europe and the USA in relation to Russia, one could expect an unprecedented growth in imports of goods from China. However, the volume of imports from China to Russia constantly fluctuates and changes almost every month. In recent years, controversial issues have arisen regarding import of food, fruits and agricultural products in general. As for industrial products, there is a steady increase in consumer confidence. The main goods imported from China to Russia are automobiles and auto parts and components,  clothing and footwear, toys and products for children, textile and electronics.

OEM

The machine-building industry forms a key part of Russia’s non-commodity, non-energy exports. It is one of three leading industries, second only to agriculture. High-technology manufacturing is the backbone of Russia’s industry.

Russia is one of the world’s leading exporters of nuclear power plant equipment, lasers, navigation devices, jet engines and particle accelerators.

Russian railway equipment, parts and components, and motor vehicles are also in high demand. Consumer electronics exports are also growing, especially of washing machines. Russia offers a wide range of machines, appliances and devices to international consumers. For example, Europe imports mill machinery made by Altay-based company CSort. Its color sorting machines are popular in Poland, France, Germany, Spain. St. Petersburg-based company Unicum Vending manufactures vending machines that are in demand abroad. Cryogenmash plant, which is based outside Moscow, produces cryogenic units, pipelines and systems exported to China and India. Systems created by Cryogenmash are used at spaceports all over the world. Metallurgical equipment from Russia has also found its overseas consumers.  Russia’s largest manufacturer is StankoMashStroy, a manufacturer of a wide range of machines and systems ranging from basic models to state-of-the-art high-precision machinery.

BUSINESS TRAVEL

Business travel is the travel of employees of different companies and organisations for business purposes, such as attending corporate events. Business tourism is not only business trips as such, but also the exchange of information, the organisation of seminars as an effective way to accumulate professional experience, the search for new partners, the organisation of events of various types, the strengthening of corporate culture. Business tourism (external and internal) is one of the main indicators of the level of economic development of a country. 

Russia hosts not only a big number of large international exhibitions devoted to various sectors of the economy and production areas, but also scientific conferences and fairs for a wide range of visitors. They collect a lot of specialists from Russia and abroad. At the same time, Russia hosts branches and representative offices of hundreds of foreign trading firms, airlines, banks, communications companies, to which new employees or partners come to work from other cities and countries.

Russia is the 14th largest export economy in the world and the 27th most complex economy according to the Economic Complexity Index (ECI).

Occupying Northern Asia and a large part of Eastern Europe making the Russian Federation the world’s biggest area by geographic area, Russia shipped US$449.3 billion worth of goods around the globe in 2018. Based on estimates from the Central Intelligence Agency’s World Factbook, Russia’s exported goods plus services represent 26.2% of total Russian economic output or Gross Domestic Product. That percentage includes re-exports.

Russia generates most of its income from oil, natural gas, timber and metal. The agriculture sector is another income generator for Russia and the government has put in place policies that support farmers. This is so because since Russia has the fourth largest total area suitable for cultivation in the world hence the encouragement of investors to go into farming.

From a continental perspective, 54.5% of Russian exports by value were delivered to fellow European countries while 36.8% were sold to Asian importers. Smaller percentages went to Africa (3.8%), North America (3.4%) and Latin America (1.2%) excluding Mexico but including the Caribbean.

Given Russia’s population of 142.1 million people, its total $449.3 billion in 2018 exports translates to roughly $3,200 for every resident.

FACTORIES

Russia’s machine-building industry provides most of the country’s needs, including steam boilers and turbines, electric generators, grain combines, automobiles, and electric locomotives, and it fills much of its demand for shipbuilding, electric-power-generating and transmitting equipment, consumer durables, machine tools, instruments, and automation components. Russia’s factories also produce armaments, including tanks, jet fighters, and rockets, which are sold to many countries and contribute significantly to Russia’s export income.

As oil and gas input increased in the second half of the 20th century, new chemical plants were built, particularly in the Volga, Ural, and North Caucasus zones and in other regions served by pipelines, which helped to reduce the dependence on traditional resources. Chemical industries requiring large quantities of electric power, such as those based on cellulose, are particularly important in Siberia, where both timber and electricity are plentiful.

Textile industries are heavily concentrated in European Russia, especially in the Central region, which produces a large share of the country’s clothing and footwear. Cotton textiles are dominant, with the raw cotton supplied mainly by Central Asian countries. In the zone between the Volga and Oka rivers, east of Moscow, there are numerous cotton-textile towns, the largest of which are Ivanovo, Kostroma, and Yaroslavl.

EXHIBITIONS

Russia hosts a big number of different exhibitions oriented to various business spheres and industries including oil and gas industry, food market, tourism.