Page 51 - RusRPTDec22

The Russian authorities, having wasted 3 trillion rubles on import substitution
programs, continue to look for alternative sources of imports of high-tech parts,
without which the industry is worthless. Despite the government best efforts at
import substitution in some segments imports remain at 100% or slightly less
by the beginning of the war in 2022: the share of Russian radio-electronic
products in the domestic market was only 12%, equipment for the production
of baby food - 3%, automatic transmissions for cars - 0%.
Now the Russian Ministry of Industry and Trade is looking for these parts in
India - the department sent a list of more than 500 goods to the country that
Russia would like to purchase, from ignition coils for cars to fire extinguishers
for aircraft.
There are 14 pages in the "Indian" list of the Ministry of Industry and Trade. It
includes automotive engine parts (ignition coils and oil pumps), bumpers, seat
belts, infotainment systems, aircraft fuel systems, aircraft fire extinguishers, life
jackets and aircraft tires. The list also included raw materials for the production
of paper, paper bags, consumer packaging, yarn and dyes.
India's total imports from Russia increased sixfold from February 24 to
November 2022, from $5.89 billion to $29.3 billion. The volume of Indian
exports to Russia is 15 times less.
The Eurasian Economic Union (EEU) is a trade bloc that includes Russia
along with Armenia, Belarus, Kazakhstan and Kyrgyzstan. Russian
imports from the EAEU countries increased by 32% in 9 months of 2022 and
reached $22.8bn. The volume of mutual trade in the reporting period exceeded
$57bn, the press service of the Russian Ministry of Economic Development
said.
"There is a significant increase in Russian imports from the EAEU countries.
For 9 months of 2022, the increase was 32% (up to $22.8bn). This is a clear
example of redirected trade flows and the replacement of goods from
unfriendly countries with products from the Union countries," Deputy Minister
of Economic Development Dmitry Volvach was quoted by the press service.
In 2021, Russia-EEU trade amounted to $72.61bn, of which Russian exports
to the EAEU member countries amounted to $45.3bn. By 7M 2022, that had
increased to $74.2bn, meaning a compounded 2022 total could reach
$127.2bn, with Russia’s exports achieving about $99.6bn of this. That will
indicate increases of $54.59bn in volume and $54.3bn in exports over the year.
Russia and Kazakhstan reached a record high trade turnover by the end
of this year, Prime Minister of Russia Mikhail Mishustin said on November 28
at the meeting with President of Kazakhstan Kassym-Jomart Tokayev. "Despite
the challenging geopolitical situation and things far from being simple also in
51 RUSSIA Country Report December 2022 www.intellinews.com