Overview of popular products manufactured by Moscow companies for the European market
2021-01-11 05:07

Overview of popular products manufactured by Moscow companies for the European market

In the first half of 2020, Russian capital enterprises earned over $2 billion on non-energy exports to Northern and Eastern European countries. According to Vladimir Efimov, Sergei Sobyanin's deputy for economic policy and property and land relations, the most popular goods with foreigners are various equipment (including automotive) and mechanical equipment, as well as pharmaceutical products. Medical and food products showed the most impressive dynamics. For 6 months of the last year the total volume of export of these goods to Europe increased almost twice.

The official noted that European countries are interested in certain commodity groups, produced by Moscow industrial enterprises, due to their geographical proximity. As for the sales of pharmaceutical and food industry products abroad, the volume of sales increased by 50-90% over six months. The key buyers were:

Czech Republic. Purchased from Muscovites food and medicines for 177.16 million dollars;
Estonia. Enriched the capital manufacturers to 145.93 million dollars;
Finland. Purchased for 143.23 million dollars;
Sweden. Spent less than others - $103.98 million.

In January-June 2020, sales of auto parts and mechanical devices to Denmark exactly doubled. This provoked an overall 6% increase in exports of the capital's manufacturers to this country. Iceland was not left out. Compared with the first six months of 2019, exports of goods from Moscow to this state increased almost 10 times.

According to Alexander Prokhorov, head of the capital's department of investment and industrial policy, although in general the flow of non-energy exports to Iceland by Muscovites was small, such a significant increase was caused by deliveries of mechanical equipment and machinery (including computer equipment). More than 90% of the total volume of goods, which the capital's enterprises delivered to this country in 6 months of 2020, is equipment designed for filtration and purification of liquids and gas.

In addition, from January to May 2020 the capital's industrial and agro-industrial enterprises sold their products to 151 countries. The main buyer was the United Kingdom: contracts for the delivery of 3.34 billion dollars. The second place went to the United States ($1.15 billion worth of products acquired from Muscovites). In third place went to Belarus ($900 million), and the fourth place was taken by Kazakhstan ($880 million).

As for the first three quarters of 2020, there is also a positive dynamics of non-energy exports from the Russian capital to European countries. According to Vladimir Yefimov, the total volume of sales during the aforementioned period is estimated at 15.3 billion dollars. The lion's share is exported to Western Europe. In January-September 2020, Moscow manufacturers managed to earn $11.7 billion in this market.

Vladimir Yefimov also highlighted the priority areas of foreign demand for the products of Moscow enterprises:

Electronic integrated circuits. The revenues from their sales abroad amounted to $2.74 million. This figure is almost twice as high as it was in January-September 2019.
Pharmaceutical Goods. The amount of revenue was $1.17 million. That is, the volume of exports increased almost 18 times.
Cosmetic products. Sales tripled to $0.67 million.

The key markets in Northern Europe were two countries: Denmark and Norway. Muscovites supplied low-voltage distribution equipment to the former, and mechanical equipment and machinery (including computer equipment) to the latter. The total volume of sales to these two countries in the first 9 months of 2020 amounted to 2.13 million dollars in monetary terms.

Alexander Prokhorov notes that in the structure of the capital's exports to European countries there is also an increase in supplies to the Baltic states. During the first three quarters of last year, they almost doubled.

In confirmation of his words, the official cites figures. Thus, the total volume of supplies of Moscow manufacturers to the Baltic States in January-September 2020 amounted to 276.11 million dollars. Goods for $79.15 million were sold to Latvia (the demand increased by 31.5%), while in Estonia - $151.18 million (demand increased by 418.3%). It was also noted that Latvia purchased medical and cosmetic products from the enterprises of the capital, while Estonia - chemical products, medical devices and equipment.

Alexei Fursin, the head of Moscow Department of Business and Innovative Development, notes that Moscow enterprises that export to European countries have the opportunity to participate free of charge in business missions, key specialized exhibitions and festivals within the "Made in Moscow" program. As another pleasant bonus such business entities can receive grants, the amount of which is up to 10% of the executed export contracts.

Alexey Fursin also noted that exporting companies can reimburse up to 100% of their costs for selling goods, services and results of intellectual activities in Europe and get up to 3 million rubles from the Moscow authorities. This amount can cover the costs for the adaptation, certification and transportation of products, as well as the certification of management systems.

Mosprom, the center for the support and development of industrial and agro-industrial exports, is helping Moscow entrepreneurs to explore foreign markets. The institution's specialists assist companies in such areas as analyzing their readiness for export activities, auditing foreign economic activities, researching international markets, and advising on product certification, customs clearance, and logistics.