Moscow companies' exports to Europe doubled to $15.3 billion
2021-01-11 05:07

Moscow companies' exports to Europe doubled to $15.3 billion

In December last year, the volume of exports of non-energy raw materials, which are supplied to Europe by Moscow enterprises, was summarized. The analytics were collected for the first nine months of the period. According to Vladimir Efimov, Sergei Sobyanin's deputy for economic policy and property and land relations, the total volume of sales to industrialists in the capital has increased by 2 times, which in money terms amounts to 15.3 billion dollars. Last year, this figure was much more modest - only 7.8 billion dollars.

As for the markets of Western Europe, in this direction for the first three quarters of 2020, non-energy exports increased by 218.9%, amounting to 11.7 billion dollars in monetary terms. For example, Moscow industrialists sold $348.88 million worth of goods to the Netherlands alone. If we take the first nine months of 2019 as a comparison, the indicator increased by 9.7%.

Exports of Moscow enterprises to the markets of the European Union

At present, there is an active growth in foreign demand for the following groups of industrial products:

  • electronic integrated circuits. The total volume of their exports in the first three quarters of 2020 has almost doubled, amounting to 2.74 million dollars;
  • goods and products of the pharmaceutical industry. Foreign partners purchased almost 18 times more of these products from the capital's enterprises than they did in January-September 2019. The total amount of transactions was $1.17 million;
  • cosmetics. Demand for it increased threefold - $0.67 million.

Now let us briefly characterize the export activity of Muscovites in the markets of Northern Europe. In the first three quarters of 2020, the total volume of goods sold in them increased by 9.1% to 615.86 million dollars. The key buyers were two states: Denmark and Norway. For these destinations, the increase in demand was 51.1% and 16.8%, respectively.

Such a sharp increase in exports to Denmark was caused by the diversification of supplies of the capital's enterprises. First of all, it is low-voltage distribution equipment, which began to be exported to the region only in September 2020. As for Norway, it showed the greatest interest in mechanical equipment, machinery and computers. The total volume of shipments for January-September 2020 to this country is estimated at $2.13 million.

Alexander Prokhorov, the head of the capital's department of investment and industrial policy, notes that during the analyzed period, the Baltic states showed an increased interest in the products of the capital's enterprises. Thus, in the first three quarters of 2020, the total demand of these countries has increased exactly twice and amounted to 276.11 million dollars. In Latvia, Muscovites supplied goods for 79.15 million dollars (31.5% more than in January-September 2019), in Estonia - 151.18 million dollars (an increase of 418.3% compared to 2019).

Latvia mostly purchased pharmaceutical products and cosmetics from businessmen from the capital. Thus, demand for the former increased by 57.12% and for the latter by 31.3%. Estonia showed the greatest interest in products of the chemical industry, medical devices and products. For this direction, export volumes for the first 9 months of 2020 increased by 119.39%.

Recall that the first six months of 2020 also showed good dynamics for the export of non-energy exports of Moscow manufacturers to the states of Northern and Eastern Europe. Thus, in January-June last year entrepreneurs managed to earn more than 2 billion dollars in these markets.

Commenting on the situation, Vladimir Efimov noted that the most popular goods among foreigners at that time were machinery (including automotive) and mechanical equipment, as well as medical products. Pharmacology and food industry showed the most impressive sales dynamics. In the first 6 months of 2020, the total volume of exports of these goods to Europe was twice as much as during the same period in 2019. The key buyers were:

Czech Republic - $177.16 million;
Estonia - 145.93 million;
Finland - 143.23 million;
Sweden - $103.98 million.

Vladimir Efimov explained that the interest of European countries in certain product groups produced in the Russian capital is caused by the proximity of their geographical location.

In addition to the unconditional market favorites - pharmaceutical and cosmetic products, in January-June 2020, Moscow industrialists managed to exactly double sales of auto parts and mechanical devices to Denmark. This provoked an overall increase in exports from Moscow manufacturers to that country by 6%.

We can't leave Iceland out of it. Compared with the first six months of 2019, exports of Moscow goods to this country increased almost 10 times. Alexander Prokhorov noted that, in general, the flow of non-energy exports to Iceland was small, and this figure is due to the supply of equipment. More than 90% of the total structure of goods which the capital's enterprises supplied to this country in the first two quarters of 2020 is equipment for liquid and gas filtration and purification.

According to the analytical data, from January to May 2020 the capital's industrial and agro-industrial enterprises have sold their products to 151 countries. The main buyer was the United Kingdom, which bought from Muscovites the goods for $ 3.34 billion. The second place went to the United States ($1.15 billion of products purchased). "Bronze" went to Belarus ($900 million), and the fourth place was taken by Kazakhstan ($880 million).

Metropolitan authorities understand how difficult it is for entrepreneurs to master the international market. That is why Mosprom, an export support center, was created. Employees of the institution provide businessmen with comprehensive assistance in foreign economic activity: they advise on the domestic legislation of other states, on the certification of goods, logistics, etc. In addition, Mosprom specialists conduct studies of the international market conditions, identify its needs and promising trade directions.