Traditionally, Russia has been an exporter of raw materials, mainly fuel. But due to the price decline for hydrocarbons in 2014, an issue of diversification of Russian exports and switching to non-resource exports, primarily non-energy ones, has arisen. For 11 months of 2017, the volume of non-resource and non-energy exports from Russia amounted to USD 116 billion, which is 20.8% higher than the indicator for the similar period of 2016.
Geography of Non-Resource and Non-Energy Exports from Russia is Expanding
"Due to sanctions, export shares are redistributed – the Russian suppliers switch from European countries to the countries of Eastern Asia, Africa, CIS, the Head of the Directorate of Foreign Economic Activities of the Analytical Center Ksenia Sukhorukova told to CityMagazine. At the same time, certain European countries keep the leading positions amongst the main partners of Russia in export." From the point of view of non-resource and non-energy exports for Russia in January-November 2017, the countries of CIS (24% of volumes), Eastern Asia (14.8%), Western Europe (11.4%), Eastern Europe (9.6%), Middle East (9.5%) played a key role.
Ms. Sukhorukova noted the trend of expansion of geography of non-resource and non-energy exports from Russia. "While in 2015 non-resource, non-energy goods were exported to 196 countries, in 2016 they were exported to 198 countries. In the 1st quarter of 2017, the number of partner countries of Russia for this area increased by 2, in the 2nd quarter of 2017 – already by 10 (in comparison with the similar periods of 2016). In addition, fluctuations in the geographic structure of non-resource and non-energy exports are mainly due to small island or African countries, the trade with which is not large," noted Ms. Sukhorukova.
The expert expressly noted a high degree of diversification (both geographical and commercial) of non-resource and non-energy exports of Russia. "This means that Russian non-resource and non-energy exports depend little on the state of markets of certain goods and policy of certain countries being trading partners," Ms. Sukhorukova believes. Among the key goods of non-resource and non-energy exports from Russia in 2017, she named semi-finished products of alloy-free steel, aluminium and its alloys, and timber.
The expert pointed out that in order to support and promote development of non-resource exports, 4 priority project passports were approved in the area "International Cooperation and Export": exports of agricultural products, international cooperation and export in industry, systemic measures of international cooperation and export development, development of Russian educational system export potential.