The Russian government seeks to use the situation of weakening of the ruble to boost exports and develop the country’s economy. “We hope that we will become an export oriented country,” – a general director of the “Russian export center” JSC (REC), Pyotr Fradkov said at the “Made in Russia” opening ceremony. “If the government is focused on exports, it has all conditions for the development of production and technologies”, – V. A. Podguzova said (director of external relations of REC).
The Russian export centre was established by Vnesheconombank in 2015, as a structure of the financial and non-financial support of the Russian exports. It’s task is to provide a system of “one window” for the exporters and contribute to export promotion, representing the interests of exporters in Russia and abroad.
“One of the main drivers of the Russian economy is a high-tech exports,” – D. Trefilov said (the director of the Department for coordination, development and regulation of foreign trade activities of the Ministry of economic development).
By 2025, the government of Russia plans to double the volume of non-oil exports by commodity groups (food and industrial products) sales of services (tourism, information technology, engineering, education, and transportation). This result will be achieved through a national system of export support, which will provide its 7% annual growth and the new instruments of support will also be used, such as subsidized credit for exporters and electronic trading platforms.
Many ministries and departments now work on the development of the Russian exports, including trading houses abroad and other companies. In addition to the event organizor, REC, the following offices and organizations took an active part in the forum “Made in Russia” 2016: the Government of the Russian Federation, Ministry of communications, Ministry of industry and trade, Ministry of economic development, Eurasian economic Commission, the chamber of Industry and Commerce. “Major companies that are present in the target markets, will help small businesses with their exports,” – Pyotr Fradkov said.
At the forum, the proposals were made on simplification of the export procedures and on the effective organization of exports. “The forum is successful enough, it has attracted great interest. It has become much more substantive. Instead of the words “it needs to…”, the participants discuss specific topics, “how to do”, and this is important,” – Pyotr Fradkov.
The proposals made at the forum can be divided into the groups: encouraging export activities, contributing to exports, facilitating exports and stimulating it. The businessmen expect support from the state in all of these areas.
First of all, it was duscussed on which Russian goods are popular and where they should be promoted. The Ministry of industry and trade brought up to speed on a successful establishment of the Agency for provision of paid services on the market analysis and possible entry barriers for them. “We came to the conclusion that this service should be paid”, – said Denis Manturov.
Access to information should cover the entire territory of the country and its regions. “The trading house is needed not only abroad,” but “the branches of these centres should be in each region and district of the country, like it is organized around the world.”
Today, the Russia’s reputation as exporter is limited to such successful large companies as Sberbank and Gazprom. Generally, as a commercial director of “AquaLife” Yury Horakov noted: “Today, there is a perception of Russia as a wild country in the world.” A common marketing brand “Made in Russia” has been created for the Russian little-known business areas, which awould allow unifying national efforts for the promotion of goods and services.
“Asuccessful export is impossible without proper positioning of products “, – V. Podguzova said. The visual image of the brand is the bird with the colors of the national flag. Its was first launched in China. In its commercial essence, the brand aims to create the image of the new Russia producing high-quality safe products for daily needs.
The use of the shared resource gives a chance to small and medium business, that would have been unthinkable for one company. According to I. I. Shuvalov (first Deputy Prime Minister of the Russian Federation) the medium business is “what we need to support.”
A concern about product certification, that may deal with serious risk and costs for a Russian exporter, also promotes the product exports. However, Denis Manturov said that the Export center will cover the costs of obtaining foreign certificates (grants will be issued for certification). Commercial Director of the company “Splat-cosmetics” Klimkin offered to take care of certification and to create a centre of expertise. There were also proposals to use the international certification centers in Russia, issuing certificates of international recognition…
To facilitate exports could be the procedure of currency control, and faster VAT refunds, which are cooling the desire to export factor.
With the aim of export promotion, the Ministry of industry and trade is organizing a business mission of small and medium businesses to Egypt, UAE, Japan and other countries. And today this is already accompanied by the Russian brand. This direction will expand, the proposal was made to schedule such visits together with the business.
Today, the regional markets are also being formed, including those under the agreements within the BRICS countries. The “hubs” have become an important part of the regional export strategies, which are the countries at the crossroads of trade routes, such as Egypt, Vietnam, and connection with which could open access to trade in the entire regions through use of their contracts.
A coordination of assistance programs in the framework of the EEU has also been discussed at the event.
In other words, there are a lot of offers, and almost all the proposals of business are already being implemented in the framework of the export policy of the country. Summing up the conversation about the development of the exports of Russia and recognizing the success of REC in the field of assistance to exports, Shuvalov said that “REC has gained strength” and now it is necessary to enlarge its powers, give it functions in the support of exports. So, probably, “Made in Russia” will gain further success of in the world markets.
Resources: Russian Ministry of Economy, Russian Export Forum
