Page 55 - RusRPTFeb19

5.2.1 Import/export dynamics
The trade turnover between China and Russia exceeded the targeted $100bn for the year by mid-December 2018, a new record high in trade terms and the way to the next target of $200bn by 2020, the Chinese Ministry of Commerce announced on January 10. China has become Russia's largest single trade partner, while Russia is China's tenth largest trade partner. However, collectively the EU is still Russia’s largest trade partner, although mutual trade with the EU has fallen by a third or about €100bn since 2014 when Russia annexed the Crimea from Ukraine. The two countries set a target to hit $100bn of trade turnover a few years ago, but that was stymied by the “silent crisis” years of 2014-2016 that hurt both their economies and saw the growth in trade stall. In 2016, trade turnover between China and Russia grew by 2.2% and reached $69.52bn. In 2017, it increased by 20.8% to $84.07bn. However, as trade picked up again in 2018 Russian President Vladimir Putin and China’s President Xi Jinping set a new goal of $200bn by 2020 and at the current rate of expansion this looks entirely achievable. Following the collapse of the Soviet Union in 1991 the mutual trade turnover was a bit less than $5bn. Bilateral trade structure also improved in 2018. Trade in mechanical and electrical products, high-tech products and agricultural produce rose 15%, 29% and 31% respectively in the first 11 months of 2018.
Russia’s exports of chemical products may double to $34–35bn by 2024, Deputy Industry and Trade Minister Viktor Yevtukhov said in an interview to Rossiya 24 television channel on January 22, reports Prime. “I can say that the chemical industry will take an active part in implementation of our plan to boost exports. We plan to double these exports. Today they stand at $17bn, and we see prospects to grow to about $34–35bn until 2024,” he said. Russia’s petrochemical industry is growing rapidly and going up the value chain. Russia is famous for pulling hydrocarbons out of the ground, but after two and half decades of profits the leading companies are investing heavily in improving the margins of this business by processing the hydrocarbons to produce more valuable products. The Russian authorities defined six major technological directions for development and have a short list of over 130 projects that are due to receive investment of more than RUB400bn ($6bn) that will be implemented in 40 regions of Russia, Yevtukhov said. Russia needs to substitute imports of certain types of chemical fibre, polymer resins, paints and lacquers, sealant compositions, and acids. “At the same time, we have the goal of raising our non-energy exports. In this regard, we’ve defined about 40 new projects totalling over 600bn rubles until 2024,” Yevtukhov said, as cited by Prime.
55 RUSSIA Country Report February 2019 www.intellinews.com