Page 141 - RusRPTJul23

public officials, as well as for business jet purposes. The government's investment aims to bolster the domestic aviation industry, enhance production capabilities, and meet the growing demand for Tu-214 aircraft both domestically and internationally.
9.1.4 Construction & Real estate sector news
Last year, investment into transport and storage rose 21.1% and construction by 24.6%; together they accounted for just over 24% of all fixed investment. Since the invasion, construction has consistently posted growth every month, even seeing an acceleration in the last 6 months boosted by the frontloading of spending on infrastructure and non-housing projects (these were budgeted with state money prior to the invasion to cushion the economy against the sanctions shock.) Construction hit 9% year-on-year growth in Q1 2023. By comparison, retail turnover has declined in the range of 8% year-on-year as of Q1.
9.1.5 Retail sector news
Due to the decline in demand for Apple's premium smartphones and "uncontrolled supplies" through parallel imports, the market has seen an oversupply of iPhones, market sources told Kommersant daily, noting primarily the iPhone 14 and 13.
As followed by bne IntelliNews, in order to overcome the crisis caused by the sanctions for the military invasion, Russia has allowed so-called “parallel imports” of goods without the permission of the copyright owner. Notably, India accounts for 15% of re-sale imports of iPhones to Russia, which are now reportedly in oversupply.
In the meantime, the rest of the smartphone market is growing, as in 5M23 in January-May total demand increased by 12%, while demand for Apple's gadgets equipment declined by 4%. At the end of spring some iPhone models even fell in price by 6-10%.
"Now everyone is smuggling the company's products, disguised as anything at all. Previously, Apple strictly controlled the supply, arranging it in proportion to or less than the demand," one of the sources told Kommersant.
Other market participants also noted a decline in demand for Samsung smartphones, estimating that the brand’s market share in units sold fell from 29% in 5M22 to 13% in 5M23, and in monetary terms - from 26% to 17%.
In the meantime the demand for Chinese models is growing - in particular for Chinese Tecno, with its share increasing from 2% to 11% and in money terms from 1% to 5%, and the best selling models all being Chinese - Xiaomi (28% of
141 RUSSIA Country Report July 2023 www.intellinews.com