FDI & Foreign Trade

Severstal to Export Chinese Steel to EU to Avoid the Utmost Anti-dumping Tariffs

Posted on by

By Marina Romanova

severstal-to-export-chinese1Russian steelmaker found the way to lower the effect of severe anti-dumping duties levied by the EU on Russian steel in August 2016. According to Vadim Larin, chief executive of Severstal, Russia’s fourth-largest steelmaker, the firm is exporting Chinese cold rolled steel to the European Union instead of Russian one, because EU anti-dumping duties on the Chinese product are much lower.

The levies against Russia range from 18.7 percent to 36.1 percent and those against China range from 19.7 percent to 22.1 percent, depending on the company. Among Russian exporters, Novolipetsk Steel is subject to the maximum rate of 36.1 percent, Severstal faces a 34 percent levy and Magnitogorsk Iron & Steel Works has an 18.7 percent duty. Among Chinese exporters, Shougang group faces a 22.1 percent rate, while Angang Steel is subject to a 19.7 percent duty.

Continue reading…

China Propose to Set Free Trade Zone between Shanghai Cooperation Organization Members

Posted on by

By Marina Romanova

china-proposeChina proposed to establish a free trade area between members of the China and Russia-led Shanghai Cooperation Organization (SCO). According to Qian Keming, PRC cabinet vice minister of commerce, a free trade area would facilitate regional economic cooperation and would enhance trade and economic cooperation between SCO members.
He also called for the establishment of an SCO development bank, which would provide funding for regional projects together with other multilateral funds and development banks, to be expedited.

Continue reading…

Eurasian Transport Hub for the Silk Road Economic Belt to be Built in Outskirts of Moscow

Posted on by

By Marina Romanova

vagon_03Russia and Kazakhstan plan to build a 400,000 TEU international logistic center ‘Central Dry Port’ in Moscow suburbs, Russian daily Kommersant reports. Russian firm Coalco Development and KTZExpress, subsidiary of Kazakhstan’s Railways, signed an agreement on this project on October 5th.

The construction site of the logistics hub handling containers passing along the “New Silk Road” (China – Kazakhstan – Europe) and Trans-Siberian corridor will be situated in Domodedovo district of Moscow region on a 60 hectare plot of land at Russian M-4 “Don” highway. Container and transport terminals, warehouses of low-temperature and dry containers are planned to be built there.

Continue reading…

WTO to issue first-ever Trade Policy Review of Russia

Posted on by

By Marina Romanova

full-1465370789151128gng-1465382476WTO to question import substitution

Last week World Trade Organization held two days long discussion on its first Trade Policy Review of the Russian Federation since Moscow joined WTO in August 2012 as its 156th member.

The Review took place at a time when Russia faced a challenging economic environment: fall in oil prices, the sanctions imposed on Russia by some countries, and the counter measures taken by the Russian Federation were among the main reasons for the contraction in the economy, WTO’s Chairperson Concluding Remarks reads.

Continue reading…

Alrosa to Double Diamond Sale to Asia in 2018

Posted on by

By Marina Romanova

CrV6ASvUIAAIIH5A day ahead of the Second Eurasian Economic Forum, Russian PJSC Alrosa, the world’s largest producer of rough diamonds, has open its Eurasian Diamond Centre in Far Eastern port-city of Vladivostok. According to the miner press release, the company wants to boost gem sales to Asia-Pacific nations, including China, India, Japan, and Singapore; and improve cooperation with companies in the region.

The new trading platform will provide an infrastructure cluster to unite diamond industry companies and cater to export-import operations. The Centre will also be in charge for the search of “potential new partners and investors to set up manufacturing facilities for industrial grade diamonds and production of diamond cutting industry equipment.”

Continue reading…

South Korea to invest US$5.37 billion in Russian Far East

Posted on by

By Marina Romanova

7_Hkg9188630afpIn exchange to disapproval of North Korea’s “self-proclaimed status” as a nuclear power, South Korean President Park Geun-hye accepted Vladimir Putin’s invitation to develop the Russian Far East, Russian and South Korean media reports. The main economic value for Moscow for the diplomatic solution are US$5.37 billion worth projects to be implemented by Korean companies, such as construction of fertilizer plants in Far Eastern city of Nakhodka,  investing in setting up shipyards, assist in logistics, waste recycling, and pharmaceuticals.

Last weekend Putin and Park signed two dozen documents at the 2nd Eastern Economic Forum in Russia’s Far East port city of Vladivostok, including agreements on maritime search and rescue and a memorandum of understanding regarding industry and trade.

Continue reading…

Hyundai Motor’s Russia to Ship Cars to Georgia and Tunisia

Posted on by

By Marina Romanova

asian-alliance-mapHyundai Motor’s Russian plant in St Petersburg will start exporting Russian-assembled cars to Georgia and Tunisia this month, the company said in its statement yesterday.

The world’s fifth-biggest automaker will ship the Solaris, its flagship model in Russia, to Tunisia and its Accent and Creta models to Georgia. Creta will also be exported to Kazakhstan, Belarus, Ukraine and Georgia and to the Middle Eastern Egypt and Lebanon.

Hyundai Motor’s Russia started producing its second model, Creta crossover, at company’s St Petersburg plant this August. Following an upgrade which cost the equivalent of US$100 million, Hyundai has now added production of the Creta crossover to the facility which formerly built only the Solaris small car.

Continue reading…

Chinese and South Koreans to export water from Lake Baikal

Posted on by

By Marina Romanova

inside_map_closeChinese and South Korean investors plan to export bottled water from grand Siberian Lake Baikal, Russian media reports.
Last year the government of the Republic of Buryatia signed a letter of intent on the construction of two plants with the participation of investors from China (Beijing-based Jinbei Yuan) and South Korea (Seoul-based Pulmuone Co Ltd in Health and Wellness). Another Chinese technology conglomerate LeEco, which also wants to export bottled water from the lake, has entered negotiations with the governor of the Irkutsk region in July 2016, Russian Izvestia informed.

“The plant’s projected capacity is 500,000 tons a year,” head of Buryatia’s Regional Development Fund (RDF) Anatoly Dumnov said at the signing ceremony with Pulmuone firm. According to the terms of the agreement, investment in the project will reach approximately US$20 million, with South Korea viewed as the main market for its products. However, some of Baikal water will also be traded locally.

Continue reading…

Russia-Hong Kong СDTA Will Go Into Effect on January 2017

Posted on by

By Marina Romanova

hong-kong_mapThe comprehensive double taxation agreement (CDTA) between Russia and Hong Kong entered into force on July 29, 2016, and will go into effect in Russia for any year of assessment beginning on or after January 1, 2017 in Russia and April 1, 2017 in Hong Kong.

The CDTA agreement, which was signed with Moscow in January this year, became Hong Kong’s 34th that has signed with its trading partners. The CDTA sets out clearly the allocation of taxing rights between the two jurisdictions and thus will help investors better assess their potential tax liabilities from cross-border economic activities.

Russia’s double tax deal with Hong Kong is said “to support the territory’s ongoing efforts to expand its CDTA network, in particular with economies along “the Belt and Road.” The Belt and Road, or the Silk Road Economic Belt, is a PRC economic development project, which is primarily aimed at integrating trade and investment among around 60 Eurasian countries.

Continue reading…

Moscow to Restore Ties with Ankara Contrasting Public Opinion

Posted on by

By Marina Romanova

fpvyfTurkish president Recep Erdogan travels to St. Petersburg on coming Tuesday, August 9th, to meet his Russian counterpart Vladimir Putin to restore two nations’ economic ties being down since Turkish air force dropped Russian Su-24 fighter jet near the Syrian-Turkish border in November 2015. The followed termination of Moscow-Ankara affairs painfully hit public relations, economic affairs and trade.

Food, Agro Products and Joined Projects

Initially Ankara has been one of the beneficiaries of Russia’s food embargo against the west. In 2014, bilateral trade in agricultural products increased by 19 percent to US$4 billion. When Moscow has embargoed a range of products and foodstuffs, including shipments of fresh fruits, vegetables and nuts, poultry and salt, food exports from Turkey were in serious trouble. Nearly 20 percent of Russia’s vegetable imports are provided by Turkey, and about US$31 billion in bilateral trade was at risk amid deteriorating relations between the two countries.

Continue reading…

Dezan Shira & Associates

Meet the firm behind our content. Dezan Shira & Associates have been servicing foreign investors in China, India and the ASEAN region since 1992. Click here to visit their professional services website and discover how they can help your business succeed in Asia.

Never Miss an Update

Subscribe to gain even better insights into doing business in Russia. Subscribing also lets you to take full advantage of all our website features including customizable searches, favorite, wish list and gift functions and access to otherwise restricted content.

Scroll to top