Russia seeks exporters to replace the Ukraine

Historically, the economies of the two countries — Russia and the Ukraine — were closely connected and dwelled under the same roof of the USSR. The Ukrainian industry: ferrous and nonferrous metallurgy, machinery, hardware production, railway industry, pulp and food processing, and many other industries, has largely been focused on the Russian market.

Exports from the Ukraine to Russia totaled tens of billions of dollars.

For example, according to analysts, in 2013 Ukrainian metal, reinforcing wire and rods occupied a quarter of the corresponding segment of the Russian market, which is expressed in monetary terms nearly $ 2 billion.

Ukraine’s industrial belt was built for many years. In the Ukraine many Russian aircraft industry enterprises and design institutes were located. Russia relied on the Ukraine as the nearest neighbor and trustworthy partner.

Ukrainian exports — heavy machinery, steel and pipes, mining and quarrying equipment — for many years entered Russia on favorable terms, often with large duty-free quotas and reduced transport costs. Many Russian manufacturers simply could not compete with the Ukrainian exported raw materials and goods.

However, the situation changed with the beginning, first, a trade war between the two countries, and second, the governmental takeover in the Ukraine.

Russia had to cancel the duty-free quotas, impose an embargo on the import of a whole list of goods from the Ukraine and, at the same time, tighten customs procedures for the Ukrainian imports.

And so, the result of such trade embargo is Russia’s urgent need for new exporters to replace the Ukraine.

On the example of some Russian steel companies, a sharp increase in Chinese and Indian imports can be seen. In the engineering and machine tool industries the share of imports from some European countries (like Germany, the Scandinavian countries and Italy) is gradually increasing.

It is possible that in the light of current events in the Ukraine, Russia will provide more favorable conditions for foreign companies and create a better environment for the expansion of their businesses, as the domestic industry is not sufficient to fill the vacant market capacity.

Industrial Exhibition in Russia as an opportunity to assert your company

Every year dozens of industrial exhibitions are held in the largest Russian cities: Moscow, St. Petersburg, Kazan and Yekaterinburg. It is a great opportunity for a foreign company planning to expand and develop in the Russian market to assert itself.

It is important to remember, however, that the competition even in the relatively new market segments is rather high. So, in order to maximize the participation in the Russian exhibition, it is necessary to thoroughly prepare for this event.

The most reasonable solution for the economical director would be to delegate the professionals from Russia who know the local rules, mentality and business culture to prepare the participation of the foreign firm in the Russian exhibition. Read more…

Five tips for entering the Russian market

W2R objectives result from many years’ experience helping foreign businesses to set up in the Russian market.
The primary subject matter when looking to expand into Russia is to decide if you need a direct presence, say, through a representative office or subsidiary or whether you choose to use the Russian market opportunities remotely via an agent or distributor.

Standing at the beginning of a crooked road we cannot blueprint all the details. However there are a few standard Russian market entry strategies that do work. Basically, each of them consists of 5 complex steps: Read more…

Ransack for Russian partnership or get a customized turnkey

Russia is the country where you can dream big and act big. However it is like an upscale nightclub — high entrance fee and tough bouncers.

Self-reliant entering the Russian market is a suicide mission for a small or midsized foreign industrial company. The hindrances are many: from the trivial language barrier, bureaucracy and corruption to sophisticated mentality gap. Very often in Russia reasonable terms of supply, high quality of products or good prices aren’t determinatives of choice of a supplier.

Any way you slice it, you need to seek help from an allied local — regional agent or dealer. The question is, how to find either? Read more…

Russian market: mission impossible?

Why expand into Russia?

  • With a population of over 140 million, Russia is the world’s largest country
  • Upgrading potential of obsolete equipment and technologies is enormous
  • Huge and ever-growing consumer market
  • Reliable W2R solutions helping you cope with major challenges Read more…