Import / Export Russia
July 8, 2022
The largest Russian marketplaces are going to increase revenue by an amount comparable to the turnover of the 20 offline stores which have left Russia. Such brands include Adidas, Puma, Zara, H&M, Massimo Dutti, Christian Dior, IKEA and Uniqlo. Their trade turnover amounted to almost 1,54 billion USD - this amount can be distributed between marketplaces, which will start to bring brands products on a parallel import schemes.
Computer prices are almost back to February prices. Russian stores began to sell MacBook laptops imported in parallel. Moreover, there is no difference in price between "white" laptops imported before the sanctions and "parallel" MacBooks. The volume of guarantees is the same - only in the first case, they are given by the manufacturer, and in the second - by the seller.
By the end of the year in Russia it will be possible to sell some gadgets without pre-installed Russian software - the Ministry of Finance. The Ministry suggested introducing a moratorium on penalties for such sales of devices until the end of the year. The corresponding bill is ready.
Resource of construction equipment available in Russia is designed for a maximum of 3 years, it is necessary to provide a plan for its import substitution due to the strong dependence on the West - Deputy Prime Minister Marat Khusnullin.
The Government has provided an unprecedented amount of import financing for metallurgy, automotive industry, chemical and pharmaceutical industry, the total amount of the program – 12,5 billion USD - Maxim Reshetnikov.
The volume of yuan trading on the Moscow Exchange exceeded the volume of euro.
The State Duma passed in the third reading a law which would allow to limit dissemination of information about transactions of Russian participants of foreign trade activities, to help them to avoid restrictive measures against Russian companies by the West.
The State Duma passed in the third reading the law to increase the threshold for cash transactions subject to mandatory control by Rosfinmonitoring from from 9230 to 15390 USD.
Four Turkish brands have announced plans to enter the Russian market by the end of the year: fast food restaurants Chitir Chicken, Yesen Burger and Little Kitchen, as well as coffee chain Arabica. Many other brands from Turkey, Kazakhstan and the UAE are also in talks.
Maritime traffic between Russia and Turkey opens in Sochi on July 16.
Saturation of the market is the priority goal facing parallel imports.
Crisis is an opportunity.
THE RUSSIAN GOVERNMENT LEGALIZED PARALLEL IMPORTS
They explained it on improving the sustainability of the Russian economy in the face of sanctions. The list of goods and brands was approved by the Ministry of Industry and Trade, they reported yesterday.
They approved the parallel import of Tesla, Land Rover, Jeep, Jaguar, Chrysler, Bently, Cadillac, Chevrolet, Dodge, Hummer, Rover, GMC, Freightliner, Peterbilt, Kenworth, Mack; spare parts from Cummins, Deutz, Hyundai, Nissan, Volkswagen, Toyota, Volvo, Scania, tires Continental, Michelin, Goodyear, Bridgestone, electronic components, consumer electronics Electrolux, Miele, Siemens, Dyson, Apple, Samsung, Nokia, Sony, Siemens, HP, Huawei, Lenovo; game consoles XBox, PlayStation, Nintendo, totally more than 50 groups of products, including textiles, leather goods, clothing, fur, perfumes, equipment and mechanical devices.
The list of goods includes industrial equipment, including mining, electricity, rail, shipping, and agriculture.
Parallel imports are the importation of original goods into the country by persons who do not have documented consent from the right holder to import the goods. Products are imported not through an accredited distributor, but through alternative channels. According to the Russian law, for parallel imports the company-importer must pay compensation to the right holder in the amount of up to 5 million rubles (about 65k USD), and the goods must be destroyed. Now import of products without the right holder's permission is legalized.
In Russia, the individual entrepreneurs and companies under the simplified system of taxation pay tax on income at the rate of 6% in total.
There are two types of simplified taxation in Russia:
Income. You pay taxes under the simplified tax system only on the income received. Earned 10 million rubles - paid 600 thousand rubles at a rate of 6%.
Income minus expenses. Pay taxes only on the profits. Earned 10 million rubles, spent 5 million rubles - paid 750 thousand rubles at the rate of 15%.
Companies and individual entrepreneurs who comply with the two limits can work on the simplified tax system:
Annual income - no more than 150 million rubles (2 million USD);
The average number of staff for the year - not more than 100 employees.
Crisis is opportunity.
June 5, 2022
Representatives from more than 130 countries, including "unfriendly countries," attended the annual SPIEF-2022, St. Petersburg International Economic Forum from June 15-18, which resulted in the signing of contracts worth 5.6 trillion rubles ($97 billion) - 30% more than last year.
The Russian Finance Ministry expects the experiment to create bond warehouses in Russia to be launched this fall.
Bonded warehouse is a storage and distribution zone for goods sold through Internet sites with a special customs status, which allows not to pay duties and taxes on the imported range of goods before they are purchased by the end buyer.
Businessmen from "unfriendly countries" interested in the Russian market will be highly welcomed and the object of special care of Russia - Dmitry Peskov, press secretary of the President of Russia.
The Russian government has allocated more than 37 billion rubles for the program of preferential crediting of priority imported products. They talk about issuing concessional loans to importers at a rate of about 6%. The funds allocated by the Government will allow to subsidize such loans for a total amount of not less than 800 billion rubles. For the purchase of raw materials and components the preferential rate will be valid for one year. For equipment and means of production - three years.
The list of priority imported products includes food products, medicines, pharmaceuticals, vehicles, construction materials, machines, agricultural machinery and electronics. (https://lnkd.in/gN7RRyET)
Russia will allow the use of cryptocurrency as payment for foreign trade activities of legal entities. The government has prepared a bill on digital currencies.
- Russia is introducing a moratorium on inspections by tax authorities of compliance with currency legislation. It will come into force on June 1 and will be valid until December 31, 2022.
Vladimir Putin signed a law which prohibits registering brands if the brand name may mislead consumers as to the place of origin of goods.
Gazprom's Board of Directors recommended that its shareholders pay dividends for 2021 in the amount of 52.53 RUB per share. The dividend yield is about 18%.
June 1, 2022
The Central Bank of Russia has changed process of dollar/ruble rate calculation.
The USD/RUB exchange rate will be set based on the Moscow Stock Exchange data on the weighted average dollar/ruble exchange rate for transactions concluded from 10:00 to 15:30 Moscow time. Previously, since March, 2022 the calculation period was 10:00-16:30 Moscow time.
The exchange rate of the euro and the yuan to the ruble will be set similar to the calculation of the official U.S. dollar rate - based on the weighted average euro and yuan to the ruble rate.
- The Federal Tax Service of Russia supported proposal to allow legal entities to pay in digital currency with foreign companies. The initiative was also supported by the Russian Ministry of Finance. A new decree is expected soon.
- The Central Bank has eased currency restrictions for all exporters. Now the companies are obliged to sell the currency within two months instead of three days after payment has arrived. The volume has not changed - 80% of foreign currency income.
- A zero rate of import customs duty for fiber-forming polyethylene terephthalate was set for a period of 1 year (HS code 3907 69 000 1). The decision comes into force on April 28, 2022.
- The Russian Government increases export quotas for mineral fertilizers.
The measure is necessary to support producers who face the risk of downtime: due to sanctions they have lost part of their export markets, and production volume exceeds domestic demand. Companies are counting on interest in fertilizers from states that have not joined the sanctions.
- For nitrogen fertilizers, the quota will increase by 231 thousand tons and reach about 5.7 million tons.
- For compound fertilizers, the quota will increase by 466,000 tons. The quota will be about 5.6 million tons.
The decision will be valid until May 31, 2022.
- Weight and size controls for trucks at the border will be canceled.
The new rules will be in force until September 1 for carriers of food and non-food essentials. "Today, in conditions of external pressure, it is necessary to ensure unimpeded imports of socially important products into our country," Mikhail Mishustin.
- The Ministry of Internal Affairs and the Ministry of Labor have developed a bill on simplified receipt of residence permits for foreign employees of IT companies.
Specialists will not need to obtain a temporary residence permit and employers will not need to obtain permission to hire foreign workers.
- Volvo Cars is cutting back Russian offices following General Motors. The Swedish brand intends to continue its warranty support and is ready to pay for parts imported in Russia within parallel imports rules.
Latest news about import/export in Russia on my Linkedin. Follow on Anna Shebanova http://linkedin.com/in/anna-shebanova
September 5, 2017, Executive.ru
Десять принципов стратегического маркетинга, которые уберегут вас от ошибок и усилят ваш иностранный проект
Автор: Анна Шебанова
July 1, 2022
JOIN OUR LIST OF SUPPLIERS & DISTRIBUTORS
I am establishing a pool of suppliers and dealers/distributors from different markets [Europe, Middle East, USA, South America, Russia] in different industries - machinery, technology, fertilisers, food grains, edible products, edible oil, interior fabrics, etc., and establish partnership with service providers and professionals in the import/export industry. Primarily as an Import & Export Agent in the UAE and Russia.
If you are a manufacturer and looking for dealer/distributors worldwide and want to become my partner, please send a presentation of your product and company by email: firstname.lastname@example.org
If you are looking for suppliers in Russia or Europe, feel free to send me your inquiries with requirements and specifications to be included into the project.
Please contact me for any questions by email: email@example.com, or share with someone who might interested.
July 18, 2022
Answering the question of my LinkedIn friends to my previous post https://lnkd.in/gZZ9tGbW - How do you source or rich out to the buyers in Russia.
In general, the search for dealers and customers in Russia is similar to the international market, but it is highly desirable to have an employee with knowledge of the Russian language and mentality.
What sources I would recommend:
- Industrial exhibitions, associations, journals and conferences (trade fairs on www.exponet.ru),
- Supplier directories (www.postavshhiki.ru, www.optom.ru, www.optlist.ru, www.optymarket.com, etc.)
- If you are a manufacturer of industrial goods or solutions I would recommend online-platform like www.directindustry.com. You create an online-stand with highlight-newsletters to the accounts of Directindustry and reachable by Google search. You are found by companies looking for your product.
It works well in Europe and North & South America with high value accounts, but I receive requests from Russia and CIS-counties too. You receive an Excel-file with all accounts visited your online-stand with insightful information about your visitors and product of interest, which you can use further for creating your own newsletters. They provide excellent customer service and very user-friendly interface for quick reply to the inquiries [contact Imane Hadj-Fradj ]
- In the B2B industries and niche markets, you can buy a market report. There are good providers of market research in Russia that usually provide lists of major suppliers and consumers of products in their reports. So you gain market information and a list of potential clients.
- For more sophisticated search and competitive intelligence, I use Russian customs database. In customs statistics you can see which companies, both end customers, and dealers buy products of your competitors and in what volume/customs value. Then you contact these companies directly with your offer. In such market investigation you receive not only figures by brand for market estimation, evaluation of market share of your competitors and average price, but also a list of supplies and suppliers with all data necessary for further processing. HS code required.
- The Russian Ministry of Trade developed a new online-platform for search of manufacturers and suppliers of import substituting goods, analogues of sanctioned products - https://lnkd.in/ghg2Jiir . I haven't experience with this service, but I guess it will work well too.
If you have questions, please feel free to ask, and let's discuss how I can contribute to your sales growth in the new markets. Email: firstname.lastname@example.org.
August 25, 2022
Interview with Sergey Galitsky, the founder and co-owner of Magnit, the Russia's largest retailer.
Forbes estimates his fortune at $3.5 billion in 2021. I hope it will be insightful for everyone who wants to enter the Russian market.
There is no one perfect country for doing business. Where there are good conditions, there are small opportunities. Where there are a lot of opportunities, conditions are an issue.
Yes, we have 10 million customers a day. Considering they're families, that's 25-30 million people coming in every day. But it's a real race for customers. We have very strong competitors.
When we cut the price for bananas by 1 ruble, we sell 100 tons a day more. There are people who live within their budget.
Cucumbers last 7-8 days. We had losses of up to 50% in the winter. So we were forced to start our own production. Now we have the biggest greenhouse in Europe (80 ha).
We do not have more than 10% direct imports. It is not a very significant segment of Russian retail.
Thanks to the government, they did not impose sanctions immediately, we had time to readjust. We added Central Asia, Iran, and found products in other countries .
We've been opening three or four stores a day for over three years now. It seems amazing, even to us.
In order not to be disappointed, you don't have to be fascinated. In business, every day is like a war.
I don't see anything Wal-Mart can do that other retailers can't.
The miracles ended two thousand years ago. If the price is lower, the quality is lower. We have to be objective and be honest about it.
In business, you have to not be afraid to go out every day with an open mind and have a chance to lose everything. When you are afraid to lose everything, you have to admit that you no longer have the will that you had.
I only believe in daily, hard work. It's not self-learning. It's just hard work. And whoever spends more time on it has more effect.
Over time, I began to realize that I began to lose speed. At some point you have to tell yourself that operational management, with the intensity you've had for the last 25 years, is no longer for you.
In business, the element of logic is incredibly important. Chess is a good game model of logic. You should also fantastically love what you do and have an incredible sense of purpose.
Entrepreneurs are a special biological breed. Two, four percent at the most, have entrepreneurial potential. In our country, whoever thought they needed more money in this life declares themselves an entrepreneur, and when it turns out they're not ready for these risks and these stresses, they start complaining about the FSB or conspiracies by government agencies, just like a person who complains about the weather.
I could do nothing without the team, I'm just an ordinary man.
September 13, 2022
The Eastern Economic Forum was held in Vladivostok. The key topics are the pivot to the East and the development of import substitution. Participants concluded 290 contacts worth $54.5 billion.
In the first half of 2022 the trade turnover of Russia with the BRICS countries - Brazil, India, China and South Africa - increased by 40% compared with the previous year and reached $98 billion. Iran and Argentina are the next to join BRICS.
Excess foreign currency proceeds, which are coming to Russia in quite large quantities, should be used as soon as possible to import advanced technologies, machine tools and complete equipment.
The problem is that the Russian legislation is critically unprepared for prompt investment in the industrial sector. It a priori lacks such an area as project financing, i.e. obtaining money against the future results of the economic activity. Today Russian industry can take it only on collateral principles. But this vestige of the banking system of the last century needs to be eliminated - the Russian government.
Negotiations on a free trade agreement between the EEU and Iran have entered the legislative stage in each country and will be completed within a few months.
Industry associations wrote an open letter to President Vladimir Putin about the draft government resolution on quotas on seed imports. They consider the adoption of the document inexpedient and counterproductive.
At present the share of seeds of foreign selection sown in Russia for sugar beet exceeds 97%, for vegetables - 80%, for sunflower - 73%, for potatoes - 65%, for spring rape - 49%, for non-GMO soybeans - 45%. Restricting their use will lead to disastrous consequences for the industry, given that serious shares of the sown areas are accounted for by outdated, inefficient varieties of Soviet breeding.
In Russia, since 1996, there is a government moratorium on industrial genetic engineering, and since 2016 the import and cultivation of genetically modified crops are prohibited.
Exports of goods from Turkey to Russia totaled more than $738 million in August, almost twice as much as in August last year.
The trade turnover between Indonesia and Russia in this period increased by 42% and totaled more than $3 billion.
Russian-Serbian trade turnover from January to July 2022 was $2.4 billion - an increase of 56.94% compared to last year.
The Russian government is preparing the ground to switch to the currencies of the friendly countries. Deputy Finance Minister Alexei Moiseyev told RBC in an interview that Russian banks are actively considering not only the yuan, but also the UAE dirhams.
All import support measures that helped Russia this year are being extended to 2023. Parallel imports and simplified declaration procedures remain. The extension of zero duties in the EEU is under discussion and is likely to be adopted as well.