Chemicals sector in Russia

Russia is rich in raw materials, and it is a world leader in production of some chemicals. There is significant import dependency in higher value-added segments of the market and government plans to upgrade the industry.

Market overview

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For example, outdated production facilities in speciality and fine chemicals lead to Russia’s current 90% import dependence in this market segment (estimated market size $700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.

Key opportunities

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.

Latest export opportunities – Chemicals

Latest export opportunities – Russia

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

  • Customer training

  • Post sales service and support

  • Detailed marketing materials or a website in Russian

More about doing business in Russia

Contacts

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.

Contact your local international trade team

UKTI Events

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.

Latest events – Chemicals

Major Events

CHEMISTRY+ (International Exhibition for the Chemical Industry and Science)

Moscow 21-24 October 2014

http://www.chemistry-expo.ru/en/

Useful links

More about OMIS and other UKTI services for exporters

Sectors: Chemicals
Countries: Russia
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