Up 20 percent: Moscow exports to East Asia

September 14
Economy and entrepreneurship

During the first six months of 2020, Moscow’s non-resource and non-energy exports to East Asian countries increased on the same period last year, reaching $1.43 billion. This was reported by Deputy Mayor for Economic Policy and Property and Land Relations Vladimir Yefimov.

“During the first six months of 2020, Moscow businesses exported their products to five East Asian countries: China, Mongolia, South Korea, North Korea, and Japan.  The non-resource and non-energy exports amounted to a total of $1.43 billion, or 20 percent more than in the same period last year. The best-selling items were mechanical equipment and machinery, food, engineering products and pharmaceuticals,” he said.  

China, the UK, the United States and Kazakhstan were in the lead as destinations for Moscow’s non-resource and non-energy exports. More than 30 percent of deliveries to China were mechanical equipment and machinery, as well as computers. The first six months of 2020 saw an almost 24-percent rise in this type of exports as compared with the first half-year in 2019. This demand was the result of many Chinese enterprises having to be closed down. In addition to this, China was buying food, as well as polyethylene and polypropylene (the latter are used in the production of PPE).

“During the first six months [of 2020], pharmaceutical exports to Japan surged 1,500 percent due to the restrictions on the export of pharmaceuticals, sanitisers and PPE from India, one of the top 15 suppliers of pharmaceutical products to Japan,”  Head of the Moscow Department for Investment and Industrial Policy Alexander Prokhorov explained.

There was a good market for Moscow engineering goods in South Korea. For example, semiconductor exports grew by 102.1 percent and electric engines and power generators by 179.86 percent.  Food surged by 50.3 percent, and make-up and skin care products by 21.7 percent.

Food, mechanical equipment and medicines were exported to Mongolia, and medicines and car tires – to North Korea. 

Helping Moscow companies to gain a foothold in the East Asian markets are the Mosprom Centre and the Moscow Export Centre (MEC).

“The MEC offers companies in Moscow business missions, analytical market studies, and helps them find customers on personal requests. We also provide free accounts on the leading world marketplaces and assist in getting export subsidies and also grants. East Asia is a promising area for Moscow company exports and we are planning to develop it in the future. The MEC-organised online business mission involving Chinese representatives is being launched on 15 September, and a similar mission with South Korea – on 27 October,” Head of the Department for Entrepreneurship and Innovative Development Alexei Fursin said.

On top of this, the MEC is helping Moscow businesses to participate in foreign exhibitions under the Made in Moscow programme.  For example, a Moscow healthy nutrition exporter has established cooperation with partners in China after attending SIAL China.

Moscow businesses use different options while working with Asian countries, a spokesperson for the Mosprom Industrial Export Support and Advancement Centre reports. Some companies prefer direct contacts with buyers and build partner networks of their own. Others sell through distributors.

“The former often face problems like language barriers (for example, when they have to draw up documents) and the Asian business specifics, including local certification and logistics. Signing export contracts based on incorrect translations is one of the most widespread mistakes. Selling products via distributors can minimise such risks but is certain to increase the price and lower the margin,” Mosprom Head Natalya Shuvalova said.

In case of any problems, exporters can ask Mosprom for a helping hand. Experts will analyse bad export cases and provide consultations on a company’s export preparedness status, whether it needs an audit of its foreign economic activities, or how to analyse foreign markets. They can also explain how to certify products, take these through the customs, and organise the logistic support.  

From January to May, Moscow exported industrial and agro-industrial products to 151 country. The biggest amount of exports – $3.34 billion – went to the UK.  

Source: mos.ru

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