2019 Country Focus – Russia
Another difficult year has been left behind. Since 2014, Russia has been living under sanctions pressure and, it seems, everyone already understands that this is for a long time to come. But, despite all the problems, business is gradually adapting to the new reality. Russia’s GDP in 2018, according to the IMF, amounted to $ 1.57 trillion. This is the 12th result in the ranking of the largest economies in the world. The state budget, thanks to rising energy prices, again showed a surplus of a record $ 114.9 billion. The trade surplus rose to 194.4 billion dollars. External debt is declining and shows a very good indicator of 27.7% of GDP. All this makes the ruble feel relatively stable.
In 2018, Russia’s exports grew by 25.6% to $ 452.1 billion. Fuel and energy products dominate the export structure, with a share of 63.7%. The share of metals and metal products was 9.9%, chemical products 6.1%, machinery and equipment 6.5%. Export of food products and raw materials for the food industry amounted to 5.5%.
In the structure of imports, the main place is occupied by purchases of machinery and equipment 47.3%.
The ten largest partners in foreign trade are as follows:
| China||$108 283,5 mln||15,74%|
|Germany||$59 606,8 mln||8,66%|
|Netherlands||$47 164,3 mln||6,85%|
|Belarus||$33 999,0 mln||4,94%|
|Italy||$26 986,0 mln||3,92%|
|Turkey||$25 561,0 mln||3,71%|
|USA||$25 021,7 mln||3,64%|
|Poland||$21 681,4 mln||3,15%|
|Japan||$21 272,6 mln||3,09%|
|Kazakhstan||$18 219,3 mln||2,65%|
Trade Credit in Russia:
In 2018, there was a decrease in the TCI industry growth rate down to 5.7% (from 20.9% a year earlier). Against this background, there is a significant increase at Atradius, which has increased its business in Russia by almost 19% and entrenched itself as a market leader. In 2018, changes in the management of the Euler Hermes and Coface commercial units also occurred. New MMCD directors are Konstantin Morozov in Euler Hermes (from Citibank) and Alexey Fomichev in Coface (from Marsh). This will undoubtedly have an impact on the activity of insurers this year.
The table below shows the results of insurers in 2018.
|Premium*||N° of |
|Euler Hermes||€ 14’876’660||159||79||79||–|
2018 was another year of active development for Interis. Our small team of TCI, composed of Oleg Stasevich and Vlad Lelyanov, increased the premium portfolio by 84%. In the framework of Astreos, we have carried out joint projects with colleagues from France, Turkey and Germany.
In 2019, we expect business growth of more than 70%.
All the written material is the property of Interis, and this article has been written by Oleg Stasevich.