Trade vector: Russian exports find their way abroad
Russia is actively implementing a program to promote goods abroad through national pavilions under the "Made in Russia" brand. This year, the project received a broader coverage: if earlier the pavilions focused exclusively on products of the agro-industrial sector, now industrial goods and various services are also included in the support area. Izvestia investigated which countries and markets Russia plans to cover first, as well as which industries and services are priorities for promotion.
Changing formats
The key task of the Russian national pavilions is to support the promotion of domestic goods abroad and create a convenient environment for establishing direct links between foreign companies, buyers and Russian businesses. A significant step in the evolution of the program was its transformation into a model of public-private partnership. This format provides for investments from pavilion operators and regional partners interested in creating and developing national venues under the "Made in Russia" brand, organized by the Russian Export Center (VEB.RF).
In terms of industrial products, the national pavilions of the REC operate according to the list approved by Decree of the Government of the Russian Federation dated 03/20/2023 No. 661-r, in terms of services — according to Rosstat Order No. 373 dated 07/02/2012 "On Approval and Implementation of the Classifier of Services in Foreign Economic Activity into the system of state statistics," REC Vice President Alexey Solodov told Izvestia.
According to Alexey Solodov, the launch of the national pavilion in India is seen as a significant step in the development of economic cooperation between the two countries. This platform will become a convenient tool for bringing Russian non-primary products to the broad Indian market. At the same time, the resident status gives export companies access to both promotion in the b2b segment and interaction with end users. In addition, we are talking about the possibilities of entering well-known Indian retail chains, placing goods on online platforms and marketplaces, as well as sales through "Made in Russia" stores, which are organized jointly with local partners.
Already today, tangible results can be observed in countries such as China, Vietnam, the United Arab Emirates, Saudi Arabia, Egypt and Turkey, where national pavilions under the "Made in Russia" brand are successfully operating, Sergey Katyrin, President of the Chamber of Commerce and Industry of the Russian Federation, told Izvestia. These markets will be the first points of further expansion, as the necessary infrastructure has already been created there and there is a steady interest in Russian goods. The next destination is India, a dynamically developing market where there is additional demand for a wide range of products, from pharmaceuticals and industrial equipment to digital services. At the same time, in the long term, it is important to focus on Latin America — countries such as Brazil, Chile and Mexico, where food products, machinery for mechanical engineering and energy-related equipment are in demand.
— The segments where demand has already been confirmed become the first priority. These are energy components, chemical products, building materials, and non-primary segment goods. In the service sector, we see a growing demand for engineering, design and service support of industrial facilities, as well as for the introduction of domestic IT platforms. If we look at the horizon of five years, I believe that the share of industrial products and services in the portfolio of pavilions can be increased to 60-65%, reducing dependence on agricultural exports. The potential of this project is huge," he said.
Work guidelines
Russia's cooperation with the countries of the Middle East and North Africa (MENA) is considered as one of the most promising areas of foreign economic strategy, said Sergey Demidenko, Dean of the Faculty of Political Studies at the ION Presidential Academy, in an interview with Izvestia. At the same time, Egypt, Iran, Algeria and Libya were named among the main partners of the region, even despite the difficult political situation in some of these states.
— Russia has significant potential for developing cooperation, primarily in the technological sphere. Significant opportunities are opening up in the fuel and energy complex, especially with Iran and Algeria, which have rich but largely untapped resources, where Russian technologies are in demand. At the same time, cooperation with Qatar and the UAE requires a willingness to compete fiercely," the expert stressed.
Egypt, with a population of over 100 million people, is a significant and attractive market for Russian manufacturers, Sergey Demidenko believes. In particular, the resumption of production of AvtoVAZ cars in this country is being discussed. As for Libya, despite the unstable political situation and internal contradictions, there remains a certain potential for cooperation: the government under the leadership of Khalifa Haftar demonstrates interest in cooperation with Russia, but the difficult situation inside the state limits the possibilities for the sustainable development of partnerships.
According to him, Iran is showing increased interest in attracting Russian investments in the oil and gas industry and the development of transport projects, including the North–South corridor. At the same time, cooperation is complicated by sanctions restrictions and general instability in the region. Nevertheless, the limited number of possible alternatives makes cooperation with Russia particularly important for Tehran.
— The volume of Russia's trade with the MENA countries is still relatively small — in the range of $3-5 billion from each of the key countries (from the minimum figures with Qatar to the maximum with Iran). This is significantly lower than the scale of trade with China or India and highlights the large untapped potential. While China is already actively developing the region, developing industrial zones, for example, in the Suez Canal area, Russia still has the opportunity to strengthen its position, the expert said.
The results of annual surveys of entrepreneurs confirm the steady interest in such measures of state support, the head of the Popular Front told Izvestia. Analytics" by Olga Pozdnyakova. For small and medium-sized businesses, entering foreign markets and self-promotion of products are fraught with significant difficulties, which is why such assistance is particularly in demand.
— And the format of the national pavilions allows us to do this with the least risk to business, while with support to go through the path of proper registration of goods for export. Judging by the interest of residents of other countries in Russia, in addition to the existing network of pavilions, such a format could potentially be successful in India and South Africa," she stressed.
Izvestia sent requests to the Ministry of Industry and Trade, but no response had been received at the time of publication.
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