Export to Russia

Russia

Russia, officially known as the Russian Federation, is located in North Asia and Eastern Europe and has a maritime border with the North Pacific Ocean, the Arctic Ocean, the Caspian Sea, the Black Sea, and the Baltic Sea. Russia has land borders with 14 Asian and European countries and maritime borders with countries around the Bering Sea, the Sea of ​​Japan, the Caspian Sea, the Black Sea, and the Baltic Sea.

With an area of ​​more than 17 square kilometers, this country is the largest country in the world. And it ranks first in terms of area among countries in the world. In terms of population, Russia is the ninth most populous country in the world. Parts of this country are located in Asia and another part in Europe, so that its capital, Moscow, is located on the European continent and is known as the largest city in Europe.

Exports to Russia

Valuable economic interactions have been taking place between the two countries of Iran and Russia for years, so that in 2021, the volume of economic exchanges between the two sides was about 4 billion dollars.

Exporting goods is one of the important issues for business prosperity and foreign exchange earnings in the country. Given the size of the Russian market, many Iranian businessmen are interested in exporting to Russia. The country’s weather conditions have made it impossible for them to produce and cultivate many products.

Since Iran also has a thriving agriculture due to its four seasons, good weather, and fertile soil, exporting to Russia can bring great income and profit to producers, farmers, and traders.

Due to its location on the edge of the Caspian Sea, its proximity to Iran, this country reduces export costs and facilitates the transit of various goods. However, it should be noted that exporting to Russia has its own conditions and rules, and these must be considered when exporting products to Russia.

Russian Market

The Russian market has potential that has provided excellent opportunities for earning foreign exchange. Because its domestic production does not meet the needs of the country’s population of about 150 million. And its climate also prevents an increase in production volumes in this vast country.

Russia is the largest country in the world, covering a wide range of topographically diverse territories, including many areas that are inaccessible by conventional transportation methods. Russia is currently the second largest oil exporter in the world. One of Russia’s important goals is to increase its oil production and exports, attract new emerging markets, and stabilize it in the long term.

Given the conflict between Russia and Ukraine and the sanctions imposed on Russia by European countries, this situation is very important for Iranian businessmen, especially since Russia has very good trade relations with Iran.

Also, in recent years, Russia was among the countries that entered Iran in the form of a high-ranking delegation to start a new round of relations with Iran.

Given the economic interactions between Iran and Russia from the past to the present, the Russian market has been receptive to various products from Iran, and Russian customers are well acquainted with the capabilities and quality of Iranian goods. The entry of Iranian products and goods into Russia also facilitates access to the markets of other Eurasian Union member states.

Russian Economy

Russia’s vast geography, with a 30 percent share of the world’s natural resources, plays an important role in its economic activity. Russia relies on energy revenues and has a large amount of oil, natural gas, and precious metals, which constitute the majority of Russia’s exports. Russia is considered an “energy superpower.” It has the world’s largest natural gas reserves, is the world’s largest exporter of natural gas, and is the world’s second largest exporter of oil.

Russia has high potential in many areas, including the automotive, aerospace, military, agricultural, and mining industries. The country has made significant technological advances in areas such as IT, robotics, and artificial intelligence technology.

Russia’s rich and unique cultural heritage, along with its extraordinary architecture and rich history, has made it one of the most popular tourist destinations in the world. The Russian tourism industry has boosted its economy as a significant source of export revenue.

Russia has an energy-based economy, and the contribution of tourism and industrial production, especially its military industries, is also significant. Along with Saudi Arabia, the country is known as the largest oil producer in the world. It also has the largest natural gas reserves in the world.

At the end of 2022, Russia’s foreign trade turnover amounted to $850.5 billion. This represents an increase of 8.1% compared to 2021. The country’s GDP also recorded a growth of 4.7%, indicating sustainable growth in the Russian economy.

Russia’s Extensive Industries

Oil and Gas: One of the world’s largest exporters of oil and gas. This industry accounts for a significant portion of the country’s GDP and exports.

Mining: The country is rich in minerals and precious metals, including nickel, aluminum, copper, gold, platinum, and palladium. The mining sector plays an important role in the country’s economy.

Aerospace: Russia has a long history in aerospace engineering and is home to some of the world’s top aerospace companies, such as Roscosmos and PKC.

Defense: It has one of the largest defense industries in the world, producing a range of military equipment, including fighter jets, intercontinental ballistic missiles, and advanced tanks.

Agriculture: Russia has extensive agricultural land and is one of the world’s largest producers of wheat, barley, corn, sunflower seeds, and other agricultural products.

Manufacturing: The Russian Federation has the production bases for the country’s basic industries.

Technology: Russia has a growing technology industry, with several start-ups and prominent companies; and in the field of technology, it has made significant progress in areas such as IT, robotics, and artificial intelligence technology.

Iran-Russia Trade Relations

Iran-Russia Trade on the Track of Progress

These days, Iran and Russia are strengthening their political-commercial relations more than ever as strategic partners. In such a way that frequent visits of high-level political-commercial delegations of the two countries and the signing of important trade agreements and documents between Iran and Russia have grown significantly.

Russia, with the benefit of 24 special economic, commercial, and industrial zones. And while being a member of important international and regional organizations and agreements such as Shanghai, Eurasia, and BRICS, is considered the greatest historical opportunity for exporting Iranian products and services. According to estimates, a $100 billion opportunity has now emerged for the entry of Iranian goods into Russia.

With the conclusion of the Free Trade Agreement between Iran and the Eurasian Economic Union, we will move towards a free trade agreement with about 8,350 items in the goods classification system, which will be subject to free trade and we will gradually see about 90 percent of the customs tariff codes for exports to Russia reaching zero.

Meanwhile, the Russian Federation has a GDP of $1,900 billion and an average of $850 billion in trade with other countries in the world, which has made it one of the most prosperous investment markets in the world.

According to reports from the Chamber of Commerce and Industry of the Russian Federation, the total trade between Iran and Russia at the end of 2022 amounted to $4.9 billion, which is 20 percent more than in 2021.

Benefits of exporting to Russia

The large Russian market with a population of about 150 million people is one of the largest markets. The region and the world. To gain a share in this market, companies can operate in various sectors, including industrial, food, services, petrochemicals, etc.

Given the diversity of export and import products of the two countries, trade with Russia. For Iran as an important market, it presents wider opportunities for Iran. Russia, as Iran’s neighbor, provides access to other markets, including Scandinavian countries, Europe, and Central Asia. Cooperation in the production and development of joint products is also one of the advantages of trade with Russia.

For example, the construction and energy industries, electrical and electronic industries, automobile production, auto parts, household appliances, etc. can. Bring new opportunities to the two countries. Iran and Russia, as two countries with important geographical locations, use railway transportation lines, logistics lines. And airlines as easy access to other markets.

Trade restrictions between Russia and Europe have created unique opportunities for Iranian businessmen to export to Russia. In short, trade with Russia is a very important opportunity for Iran, which, as a large and diversified market, can help develop Iran’s exports and imports.

Currently, Russia is known as one of Iran’s largest trading partners. And significant amounts of various Iranian products are exported to this country annually.

North-South Corridor

The North-South International Transport Corridor is one of the most important communication routes from the West to South Asia. It was established on September 12, 2000 in St. Petersburg by the three countries of Iran, Russia and India to promote transport cooperation.

This corridor connects the Indian Ocean and the Persian Gulf through Iran to the Caspian Sea and then through Russia to Northern Europe. This passage is the most important trade link between Asia and Europe, which is up to 40% shorter in terms of distance and time and up to 30% more economical in terms of cost compared to traditional routes.

The disruption of communications and trade in Western markets due to sanctions and the disintegration of the logistics chains connecting Russia to Europe has increased the attractiveness of Iran as an important transport hub. Russia and Iran have common strategic interests in Central Asia.

Ports of Special Economic Zones in Russia

Russia and Iran have many ports for sea transportation. To facilitate this, ports are used. Which have the closest distance to each other to have a positive effect on both speed and transportation costs. The greater the distance between the two selected ports, the longer the time for the cargo to reach its destination and the related costs also increase.

Among the special port economic zones, the two Astrakhan Lotus zones and the Makhachkala port are of particular importance since they are located on the Caspian Sea and have trade relations with Iran.

Makhachkala

Makhachkala is the capital of the Autonomous Republic of Dagestan in the Russian Federation and this port city is located on the western coast of the Caspian Sea. The ports of Makhachkala are the only Caspian Sea ports in Russia that do not freeze in winter and therefore operate continuously throughout the year and are considered one of the most important ports in Russia. The development of logistics infrastructure and the establishment of transport connections with other countries and regions of Russia are the main goals of the ports of Makhachkala. The ports of the Caspian Sea are of strategic importance for Russia, as they can launch the transportation of goods from India, China, Kazakhstan, Turkmenistan, Iran and vice versa on new international routes. In addition, sea transport is the most economically efficient type of transport, which reduces the cost of transporting exported goods.

The reason for establishing the “Iran-Russia Trade House” in Makhachkala

Makhachkala is known as an international regional hub in Eurasia, as traders and merchants from Georgia, Armenia, Azerbaijan and Iran have convenient access to it.

Makhachkala, as an export port for Iranian goods, is located adjacent to the strategic North-South corridor.

“Fardad LLC” in Makhachkala is a smart goods distribution platform in Russia. The “Fardad” group of companies markets Iranian goods and services throughout the Russian Federation. Therefore, Makhachkala is a high-speed port for storing, processing and distributing Iranian goods to distribute Iranian goods intelligently in Russia after marketing. Makhachkala, with the benefit of 2 four-season ports, an international airport and its location along the North-South corridor, has earned the title of a golden region for exporting Iranian goods.

Makhachkala is essentially a strategic region in Eurasia that reduces the cost of exporting to Russia and acts as a strategic hub for distributing Iranian goods in Eurasia.

Iran Trade Center in Russia

The Iran Trade Center in Russia is officially licensed by the Iranian Trade Development Organization and is located in Makhachkala, the capital of the Russian state of Dagestan. This gathering is the largest and most prestigious permanent exhibition presenting Iranian products at the international level, which is being held for the first time in Russia. “Fardad LLC” is registered in the Russian Federation and operates as the headquarters of this complex in Moscow. For this purpose, we invite all respected Iranian manufacturers and traders to participate and introduce their products at the permanent location of the Iranian goods trade center “Iran Trade Center in Russia”.

Our goal is to set up an Iranian “commercial embassy” alongside the “political embassy” of the Islamic Republic of Iran in Russia. In fact, to activate economic diplomacy, we have set up the largest “Iranian Brand Center” in Russia.

Scope of activity of Iranian goods exported to Russia by “Fardad Group of Companies”

Food and Beverages
Iranian Dried Fruits
Fisheries and Aquaculture
Agricultural and Livestock Industries
Medical and Laboratory Equipment Industries
Home Appliance Industries
Construction and Energy Industries
Information and Communication Technology
Automotive Industries – Motors and Industrial Machinery
Mineral Industries – Metal and Advanced Raw Materials
Pharmaceutical and Health Industries – Cellulose
Packaging and Plastic Industries
Electrical and Electronics Industries
Petrochemical and Oil-Based Industries
Clothing Industries – Leather and Footwear

Fardad Group of Companies

With more than 15 years of history and operational experience in the Iranian-Russian trade space, Fardad Group of Companies is one of the first founders of the principled export of Iranian goods and services to Russia. Our vision is “to increase the share of Iranian products in the large Russian import market”. In this regard, in the past decade, we have had various small and large exports to Russian markets with the help of a large part of Iranian manufacturers.

We were among the first companies to welcome the North-South Corridor in the Iran-Russia trade space and, by utilizing the capacities we have in Russia, Iran and India in the field of combined transportation, we have reduced the cost and time of transportation by 40% and have led to an increase in export profits for our customers.

The “Fardad” Group of Companies, centered on “FARDAD L.L.C” registered in Moscow and centered on “Fardad Tejarat Behrad” registered in Tehran, seeks to achieve the “goal of the Iran-Russia Joint Economic Commission” regarding achieving an annual trade of 40 billion dollars between Iran and Russia.

The “Fardad” Group of Companies, in the “Iran-Russia Trade House”, with the benefit of two truck customs, two sea customs and one rail customs as a large logistics center, has provided all the fields of storage and distribution of Iranian goods in a ten-hectare area in Russia, so that it can be the agent for the distribution of all Iranian goods and services to other regions of Russia, in proximity to the rail, sea and North-South Corridor.

This complex is fully specialized and with more than two decades of presence in the global trade arena in the fields of export and import, with full knowledge of the characteristics of the Russian market and the Eurasian regions and information about the distribution networks in these countries, holding international and specialized exhibitions, comprehensive and complete knowledge of international trade and investment laws, having skilled lawyers, an experienced and specialized staff in trade and with full command of the languages ​​of these regions and powerful marketing teams in Iran and the Eurasian regions, and with possession of a two-story space with an area of ​​more than 10 thousand square meters with permanent and unique exhibition facilities, we have provided a suitable platform and background for concentrating Iranian manufactured products and their entry into a thriving market.

The “Iran Trade Center in Russia” will serve as an export assistant for Iranian manufacturers and traders by reducing export costs, thereby contributing to increasing the operating profits of Iranian brands. As a “smart export management platform,” it seeks to intelligently export Iranian goods and services to Russia and other member countries of the Eurasian Economic Union, including Belarus, Kazakhstan, Armenia, and Kyrgyzstan.