Russia is the world’s second largest producer of potash, third largest producer of nitrogen fertilisers and one of the leading producers of phosphorous.
At the same time the Russian chemical industry is developed unevenly, nearly 80% of Russian chemical production being relatively low value-added products.
For example, outdated production facilities in speciality and fine chemicals lead to Russia’s current 90% import dependence in this market segment (estimated market size $700 million a year).
The Russian Government announced plans to introduce measures that will help this industry segment to recover, including eliminating import duties and VAT on manufacturing equipment that has no locally produced analogues.
Russia’s chemicals strategy 2030 outlines creation of six new chemical clusters throughout the country (North West, Volga-Urals, Caspian, West Siberia, East Siberia, and Far East).
The situation in the industry is gradually improving with introduction of large domestic manufacturing capacities for the production of polystyrene, polyethylene, rubber, caprolactam, etc.
Russia’s recent accession to the world Trade organization (WTO) is supposed to ease barriers for foreign companies for entering the Russian market.
There are opportunities for suppliers of high value-added chemical products (including some types of plastics, speciality rubbers, adhesives, sealants, certain cosmetic ingredients, carbon materials, and others).
In the long term there is a market potential for suppliers of technologies and equipment for production of petrochemicals, polymers and other high-technology chemical products.
Getting into the market
In order to enter the Russian market the following points are crucial:
Presence in Russia via a subsidiary, a representative office or a reliable distributor
Well developed logistics
Post sales service and support
Detailed marketing materials or a website in Russian
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
Elena Charushina, British Embassy in Moscow Tel: +7 495 956 7494 or email: email@example.com
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
CHEMISTRY+ (International Exhibition for the Chemical Industry and Science)
Moscow 21-24 October 2014