In 2021, Russia exported non-commodity non-energy goods worth $191 billion. Compared to 2020, the value increased by 36% and became the highest for the entire period of observation, said Veronika Nikishina, Director General of the Russian Export Center (REC).
“Growth was noted in almost all product segments, but it turned out to be the most ambitious in ferrous and non-ferrous metals, fertilizers, woodworking products, chemicals, plastics, and power equipment,” Nikishina said.
According to the latest REC estimates, from January to November 2021, exports of chemical and metallurgy goods increased by 54% and 52%, respectively.
At the same time, the supply of timber industry products increased by 43%, engineering - by 31%, and food - by 23%.
It is noteworthy that the volume of non-commodity non-energy exports (NOE) of Russia achieved at the end of the year turned out to be noticeably higher than expected.
So, earlier, REC specialists assumed that the corresponding amount would be about $180 billion. The consequences of COVID-19 made it possible to partially increase the volume of deliveries, experts say.
“The pandemic has created new opportunities for domestic manufacturers to enter global markets and gain a foothold in them,” Veronika Nikishina emphasized.
According to TeleTrade analyst Mark Goykhman, Russian enterprises turned out to be more competitive against the backdrop of the suspension of production around the world, as well as restrictions on the movement of goods, resources and components.
“There is a certain shortage of a number of commodity groups in the world.
Under these conditions, the products of Russian industrialists and farmers found additional unoccupied niches in foreign markets,” the expert explained.
In addition, as Goikhman noted, the shortage of a number of goods on the world market and the policy of many states to pump their economies with money during the pandemic led to an acceleration of global inflation.
So, in connection with the widespread increase in prices, the value of Russian exports has also increased, the analyst explained.
The growth of non-resource deliveries from Russia abroad was also facilitated by the general recovery of the world economy after the crisis.
Alexander Daniltsev, Director of the Trade Policy Institute at the Higher School of Economics, shared this opinion in an interview with RT.
According to the World Bank, in 2021 the volume of global GDP increased by 5.5% at once.
The indicator became the highest for the last 48 years.
“The recovery of production in the economy always requires more resources.
Metallurgy, chemistry, timber are our traditional industries.
There is a positive trend in mechanical engineering.
Deliveries of some new types of equipment have begun,” said Daniltsev.
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For 11 months of 2021, China bought the most non-commodity non-energy goods from Russia - in the amount of $15.6 billion. The main importers also included Kazakhstan ($14.4 billion), Belarus ($11.4 billion), Turkey ($10.9 billion) and the United States ($7.9 billion).
“Kazakhstan and Belarus are traditionally the largest consumers of Russian products due to their territorial proximity and the strong interconnectedness of their economies.
For China, the main advantage of Russian products is their low cost compared to other suppliers, ”Fyodor Sidorov, founder of the School of Practical Investment, explained to RT.
On the way to the goal
In 2022, Russia's non-commodity non-energy exports will continue to grow, but the growth rate may slow down somewhat, believes Mark Goykhman.
The analyst explains this forecast by the expected decline in inflation, the restoration of supply chains and the increase in production in countries that are Russia's competitors in the world market.
According to Alexander Daniltsev, the dynamics of NOE will also depend on the situation with the pandemic and geopolitical risks.
Under these conditions, the specialist considers it necessary to continue to provide support to the Russian exporter.
As the expert emphasized, incentives should be comprehensive and cover all stages of the delivery of goods abroad.
“The possibility of obtaining services that ensure the development of exports in both transport and logistics is important.
Financial and insurance support is also needed.
In some areas, it can be provided by state institutions, and in some it is necessary to form a private service sector related to assistance to exporters, ”Daniltsev added.
It should be noted that the development of non-commodity exports is one of the priorities of the Russian authorities.
Back in May 2018, President Vladimir Putin signed a decree “On national goals and strategic objectives for the development of the Russian Federation for the period up to 2024”.
The document identified 12 national projects, as well as a comprehensive plan for the modernization and expansion of the main infrastructure.
The initiatives, in particular, provided for an increase in NOE to $250 billion by 2024.
Meanwhile, as a result of the consequences of the COVID-19 pandemic, in July 2020, the President instructed to adjust the national projects and extend their implementation until 2030.
According to the instructions of the head of state, over the next ten years, Russia should increase non-primary exports by at least 70% compared to the level of 2020.