"Export Morning", the edition dedicated to the Russian Federation: How can we face the competition on the largest CIS market
Effective marketing can increase domestic products exports to the Russian Federation. Intense promotion is the solution for Moldovan entrepreneurs to face the fierce competition on the largest CIS market. This is the conclusion of the 8th session of the "Export Morning" program, entitled "Tradition and potential", held on July 23 by the Investment Agency. The program launched last year continues online because of the pandemic, and aims to provide Moldovan entrepreneurs with complex support - informative and practical - to access foreign markets. The session dedicated to exports to Russia brought together the pre-pandemic bilateral trade experience, the current situation and the future vision of exports to this market, from the perspective of local companies, which are the top export sectors.
Rodica Verbeniuc, General Director, Investment Agency: “Exports to the Russian Federation for 2019 amount to about 250 million US dollars, compared to 2018 they increased by 14.32%. Hoping to increase exports, the Republic of Moldova and the Russian Federation continue to develop the legal framework for Moldovan-Russian bilateral cooperation, which consists of 162 bilateral documents and 28 cooperation agreements with Russian regions. Thus, the Investment Agency is ready to help local business to be promoted, identifying new access ways to face the competitiveness on the Russian Federation market.”
Russia's global import is growing
Russia ranks 2nd among the main trading partners of the Republic of Moldova worldwide, being in 2019 the 3rd export partner and the 2nd import partner.
Vladislav Darvai, trade representative of the Russian Federation in the Republic of Moldova: “There are obvious prospects for economic cooperation between Russia and the Republic of Moldova. Since 2014, the import of products from Moldova has been constantly increasing, which, demonstrates the high quality and competitive prices compared to Russian products.”
The global import of the Russian Federation increased by 9% during 2015-2019. Russia is the largest economy in the CIS and has huge potential. Therefore, producers must be prepared to face competition.
Oxana Greceanii, Minister-Counselor, Embassy of the Republic of Moldova in the Russian Federation: “Russia's market has a large volume of imported products, including European ones. Therefore, one of the biggest problems of Moldovan entrepreneurs who want to reach this market is the lack of marketing and personal involvement. It is important to participate more often in exhibitions and to promote their products, because the competition is extremely high, and our producers must prove that they are better, both in terms of price and quality. "
Promoting domestic exports to the Russian market
Over 50% of Moldova's fresh fruits and vegetables exports are carried out on the Russian market. Tthe Moldovan-Russian AgroHub project, presented for the first time at the online event, was developed in order to ensure a planned and constant export of our agri-food products on this market considering expanding opportunities to other international markets.
Stanislav Pughinschii, General Director, Commercial-Financial Union of the Russian Federation, partner of AgroHub Moldova: “AgroHub is designed to become the largest center - platform for the development of trade relations between Russia and Moldova. We have already reached a regulatory agreement with the key authorities in Russia - Rosselkhoznadzor and the Federal Customs Service. Rosselkhoznadzor will establish a remote inspection post in the AgroHub structure, which will facilitate the phytosanitary control procedure, right on Moldova’s territory. The electronic quality certificates will be given. Thus, a "green corridor" will be formed for Moldovan deliveries to the Russian Federation, which solves one of the existing problems - the regulatory risks of Moldovan suppliers. "
The basic objectives of AgroHub Moldova are: creating a center with all the necessary infrastructure and services that will help Moldovan farmers to export products abroad and ensure high product quality, ensuring informational support related to demand and forecasts on the Russian market; guaranteed access to Moldovan products in Russia, with the involvement of partners from the Russian Federation and the strengthening of trade relations between the Republic of Moldova and Russia.
Alexandru Baltag, General Director, AgroHub Moldova: “The activity directions of of this project are: efficient export organization, harvest planning, financing programs for Moldovan farmers, training, various infrastructure utilities rental, assistance and support of any kind, especially for small and medium-sized companies with less experience.”
The most popular Moldovan goods exported to Russia are fresh fruits, wines, cheese, curd, medicines, women's clothes, carpets, etc. However, the pandemic period affected even the most successful Moldovan exporters.
Anatolie Dzernovici, Director, “Intercentru Lux”: “We, like any other production industries in the world, are now going through a more difficult period, called “survival”. Currently, 70% of our own down clothing production of for men and women is marketed in the Russian Federation. Our wholesale retailers’ network in
Russia is now facing certain problems, we are also facing new difficulties, we hope to overcome soon. We have 160 retailers from all Russia’s regions. Investment Agency and other organizations helped us participate to the exhibitions and make our brand known.”
Manufacturers who want reach the Russian market must keep in mind that 30% of Russian buyers like shopping, even if they do not need anything, and 40% of Russians are discounts hunters. At the same time, almost 90% of Russian internet users buy online, and about 50% of them buy at least once a month.
The Investment Agency celebrates 2 years of activity, and its main achievements in stimulating exports to the Russian Federation are:
• World Food Moscow - Moldova's participation in the exhibition dedicated to producers in the agricultural sector resulted in 346 contacts with potential partners and an export worth about 500 thousand US dollars at the end of the exhibition.
• "Collection Premiere Moscow" - light industry producers participation in this traditional event generated an export volume of over 7 million euros and negotiations with 30 stores in 10 cities of the Russian Federation.
The current edition of the "Export Morning" program was preceded by sessions focused on export potential in Romania, Poland, Bulgaria, Germany, Italy, the Czech Republic and China.