Page 24 - RUSRptAug18

5.0 External Sector & Trade 5.1 External sector overview
The Audit Chamber reviewed the Russian Export Centre (REC). Putin's May decrees this year, including that SMEs account for a 10% share of Russia's as yet undefined "non-primary exports." $1.4bn of budget funds were spent in support of 45 organizations exporting goods. Firms like RM Rail, KamAZ, Rostelmash, and aircraft manufacturer Sukhoi led the way. On the whole, Russia's export trade was worth $357.1bn, a 4% increase since 2015. Energy exports -- namely oil, gas, and coal -- dominate Russia's export earnings and oil prices were lower in 2015 on average than they were in 2017. Though the REC measured growth of non-resource exports -- they accounted for 13.6% of the value of Russian exports last year -- it's dominated by large firms carrying out orders frequently linked to political interests. Many SMEs aren't aware of opportunities for export support schema via the REC. Per results from a business poll conducted by Opor Rossii, only 6% of SMEs actually export goods. The problem is compounded by the fact that no one understands what exactly the categories for exports such as primary vs. non-primary announced by Putin in May actually mean for businesses and those tasked with implementing policy.
24 RUSSIA Country Report August 2018 www.intellinews.com