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Exporting to Russia – everything you need to know
Although Russia only ever seems to be in the news for all the wrong reasons – from allegations of meddling in elections to poisoning ex-spies – but there are very strong trade links between the UK and Russia – with goods and service exports worth around £7.6 billion to the UK.
The Top UK exports include:
Engineering products
Even so, the UK's share of the Russian import market is behind France, Germany and Italy, so if you want to help boost the UK's profile over there, here's everything you need to know about exporting to Russia.
Where is Russia?
It's probably easier to ask "where isn't Russia?" – the world's largest country stretches almost halfway around the world, from northern Europe to North America, and covers 9 time zones, all climate zones except tropical.
Its capital, Moscow, is almost 1,800 miles from London, with regular daily flights available.
The national language is Russian, but there are 35 different languages which are considered official languages in various regions of Russia. the currency is the Russian ruble, the dialling code is +7, and the top level domain for websites is .ru.
What are the pros and cons of exporting to Russia?
There are currently about 600 UK companies operating in Russia, while more than 5,800 UK traders exported goods to Russia in 2013.
There are many benefits for British businesses exporting to Russia, which include…
desire of Russian companies to use international accounting and legal standards
respect for 'UK made' brands, including retail and luxury
anticipated increase in the number of Russian mid and small sized businesses
Strengths of the Russian market are…
young and well educated workforce
strong transport links and logistics
access to supply chains that could lead to exports to other markets in the Commonwealth of Independent States (CIS)
Click here for the latest advice on doing business in Russia and Ukraine.
One of the main challenges to doing business with Russia is the sheer size of the country as it covers one seventh of the world's land mass and has…
spans 9 time zones
has extremes of climate and weather ranging from sub-tropical in the south, to Permafrost in the north
has varying levels of development, and differing social and economic factors
And then there's the problem of corruption and any businesses should take the necessary steps to comply with the requirements of the UK Bribery Act.
How does tax work in Russia?
Russia and the UK have a Double Taxation Agreement in place, which means duties paid in Russia can be claimed back in the UK.
The main tax rates in the Russia are:
VAT – charged at 18%, but there are reduced rates of 10% applied to books, food products, medical products, and children's garments. There's also a 0% rate on exports and associated services and suburban rail passenger transport (until 2029).
Corporation tax – profits are taxed at a maximum rate of 20% on profits.
Income tax – charged at a general rate of 13%, and you are liable to pay Russian tax if you live in Russia for over half a year in 12 consecutive months.
How will I be affected by customs in Russia?
Although a massive part of Europe, Russia is not part of the EU, and all goods imported into Russia are regulated by the Federal Customs Service.
Import customs duties are usually 5%, 10% and 15%, and are based upon the classification code and the country of origin. Certain goods are exempt from import duties, but others require a licence.
Customs duty can be calculated and paid in:
Percentage of customs value of goods imported.
Specific value, charged for one piece of the relevant goods category.
Combined volume, a combination of the above.
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Kimberly said:
Something else to keep in mind is this: In the 1960s, Russia detonated an H-bomb that wasI forget the exact ratioabout 10,000 times as powerful as the bomb dropped on Hiroshima. And now we"re worried about a countryNorth Koreathat a half century later detonated a bomb five times as powerful as the one that obliterated Hiroshima. How crazy is it to demonize Putin when, if push came to shove, they could annihilate the U.S.? Yes, we could annihilate them, even if they launched a first strike with strategic (as opposed to tactical) nuclear weapons. But it"s no offense to the country that produced the incomparable Tolstoy to say that against the ruin of Moscow and St. Petersburg would be measured the ruin of New York City, Chicago, Los Angeles, Boston, Atlanta, Philadelphia, Washington, D.C., San Diego, and Denver. Russia can destroy far more human capital in America than we can destroy in Russia. Advantage, Russia. The moral of this story: It"s unwise to poke the bearmuch less to poke the bear in the eye, as we have been doing since the presidency of Bill Clinton, who started NATO"s misguided project of encircling Russia. paperhelp
The World Cup in Russia - everything you need to know - ConferenceCall.co.uk blog said:
[…] Exporting to Russia – everything you need to know […]
The «Made in Moscow for export» conference will bring together leading exporters of the Moscow and experts in foreign economic activity (FEA) at the Radisson Royal Moscow Hotel on December 10, 2018.
The event is expected to involve by more than 3000 people from 20 countries. In particular, representatives of international trade and industry associations will arrive from China, Italy, Germany, France, Netherlands, Turkey, Poland, Finland, South Korea, Japan, Indonesia, Vietnam, United Arab Emirates.
The manufacturers of Moscow export products, Russian and foreign experts, representatives of public organizations and authorities will discuss the development of non-oil and non-energy exports of Moscow and form solutions for creating an international communication platform for promoting Moscow goods to global market.
«The main partners of Moscow in the segment of non-oil and non-energy exports – India, USA, Belarus and Kazakhstan. The greatest foreign demand is about Moscow mechanical equipment, electrical devices, optics and medical equipment. We are systematically support the urban manufacturers and exporters. Exchange experience and build partnerships with foreign colleagues the one of the important areas to hold such representative industry forums such as «Made in Moscow for export», said Deputy Mayor of Moscow Natalia Sergunina.
Under the brand «Made in Moscow» at the conference «Made in Moscow for export» will be represented there are 40 manufacturers in 12 export directions. The business program will be held in the «open dialogue» format, during which representatives of small and medium-sized businesses will be able to ask questions to representatives of the authorities, foreign trade missions, international export associations. Also are planned more than 400 export consultations, 500 b2b meetings, discussions on priority export directions (industrial export, IT, agriculture, export of services).
Participants will be able to attend lectures, MatchMaking meetings with potential foreign buyers, and analyze best cases of successful exporters with world experts.