Contract flow: 1.5 billion rubles will be allocated for export support centers
The Russian government allocates 1.5 billion rubles for the operation of export support centers in 75 regions of the country. Thanks to financial assistance, the regions will be able to ensure the signing of export agreements with the participation of about 1.1 thousand representatives of small and medium-sized businesses by the end of this year. Izvestia investigated which industries most often seek support when entering foreign markets, as well as which barriers most often prevent small and medium-sized enterprises from concluding export contracts.
Investment efficiency
Since 2019, the Russian Export Center (REC) has been acting as a methodologist for export support centers that work with small and medium-sized companies in the regions and on the ground. During this time, the efficiency of the CPE network increased from 34.5 rubles of supported exports per 1 ruble of allocated subsidy in 2019 to 70.5 rubles in 2024, the press service of the REC told Izvestia.
— Undoubtedly, exporters need help today: numerous barriers, respectively, mean that our exporters have needs. Therefore, we regularly synchronize the work and priorities of the REC Group with them. So, in the annual survey, we once again updated the picture of business perception of its prospects and barriers in foreign markets," the center said. — Our export sentiment barometer in the framework of the study shows that the number of companies expecting their exports to grow in the next three years has increased to 70%.
This year, the main challenge for most industries turned out to be finding customers outside the country. In the second place, according to the results of the analysis, there were difficulties in choosing the optimal option for international payments and organizing the delivery of products to foreign buyers. In addition, the study showed the need to maintain existing priorities in supporting exporters and at the same time actively promote Russian goods and services in foreign markets. Special attention should be directed to key areas — the EAEU and CIS countries, China, the regions of the Middle East and Southeast Asia, where the main interest of domestic exports is concentrated.
The main barriers
In 2022, on the SME digital platform.The Russian Federation has launched a special service called "Production Cooperation and Sales," Alexander Isaevich, CEO of the SME Corporation, told Izvestia. It publishes the needs of foreign customers, to which Russian SMEs can respond and offer their products or services. More than 1,700 positions from 106 foreign companies are currently located there. With the assistance of the SME Corporation, domestic SMEs have already concluded about 100 deals with enterprises from Azerbaijan, Armenia, Belarus, Georgia, India, Kyrgyzstan, Mexico, Tajikistan, and Uzbekistan.
— Exchanges of contacts with large Belarusian companies from the engineering and construction industries, as well as with light industry companies from the CIS countries, are the most popular. Since the beginning of the year, 340 Russian SMEs have participated in such sessions with partners from Belarus, Kyrgyzstan and Uzbekistan. As a result, 19 agreements were signed between Russian small enterprises and large foreign companies. In addition, Russian SMEs have agreed to jointly manufacture clothing and supply various components for the needs of large Belarusian companies," he said.
Representatives of the manufacturing industry and the agro-industrial sector are most actively seeking assistance in entering foreign markets, Sergey Katyrin, President of the Chamber of Commerce and Industry of the Russian Federation, told Izvestia. At the same time, the number of IT companies offering software products and equipment for energy and telecommunications has increased significantly in recent years. There is also growing interest from the service sector, including education, tourism, consulting and engineering.
"The main barriers for small and medium—sized businesses are the difficulty of passing certification and standardization procedures in importing countries, high competition, as well as a lack of competence among entrepreneurs to negotiate and prepare documentation," he said. — Limited access to information about potential partners and the specifics of legal regulation in specific countries remains a significant factor.
Among the obstacles, there is still a lack of awareness among entrepreneurs and an ingrained opinion about foreign economic activity as a difficult and costly process, Dmitry Zavyalov, head of the Department of Entrepreneurship and Logistics, Dean of the Faculty of Higher School of Economics and Business at Plekhanov Russian University of Economics, confirmed in an interview with Izvestia. At the same time, there is an increase in the number of companies from the SME sector that join export support programs, participate in exhibitions, fairs, tastings and festivals under the "Made in Russia" brand. At the same time, business interest goes beyond information assistance — logistics subsidies, insurance with deferred payments and assistance in passing certification procedures remain in demand.
The main difficulties remain the lack of practical experience in foreign economic activity and a poor understanding of the specifics of foreign markets, Daria Sokolan, Deputy Dean for International Affairs at the RUDN University Faculty of Economics, told Izvestia. Entrepreneurs do not always have a clear idea of which product is in demand in a particular region. New barriers are added to this: difficulties with customs and tariff regulation, certification procedures, compliance with standards and adaptation of products to the requirements of foreign buyers. Recently, special attention has been paid to the issues of certification of Russian goods abroad, especially in the pharmaceutical industry.
A significant part of the most difficult barriers are related to the requirements of foreign countries for agricultural products, Alexander Daniltsev, director of the HSE Institute of Trade Policy, told Izvestia. We are talking about sanitary and phytosanitary standards, which relate to product safety and often differ in each individual country. Similar difficulties arise with regard to industrial exports, which also have their own technical standards.
In all cases, verification and conformity assessment procedures are required, which inevitably entails additional costs, he recalled. At the same time, despite the development of digital technologies and means of communication, a serious information barrier remains: it is often difficult for entrepreneurs to obtain complete information about import rules, national legislation and regulatory features in the partner country. This also includes the search for a reliable partner company.
"In general, the problem is often a shortage of export—related services, in particular, consulting, legal support, advertising, and personnel training,— says Alexander Daniltsev. — Medium and small enterprises are in dire need of qualified specialists in the field of foreign economic activity. At the same time, such enterprises cannot have a large staff of employees engaged specifically in the field of export activities. Therefore, we need versatile specialists with knowledge and qualifications on a wide range of issues related to export development.
Izvestia sent a request to the Ministry of Energy, but no response had been received at the time of publication.
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