Table of Contents
Leave business with Russia to us
"Fardad" group of companies as your export assistant, by using its 15 years of knowledge and experience, is your guide in all stages of reaching this profitable business.
Russia
Russia, officially known as the Russian Federation, is located in Northern Asia and Eastern Europe and is bordered by the North Pacific Ocean, the Arctic Ocean, the Caspian Sea, the Black Sea, and the Baltic Sea. Russia has a land border with 14 Asian and European countries and a water border with the 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 Million km2, this country is the largest country in the world and has the first place in terms of area among the countries of 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 is located in Europe, so that its capital, Moscow, is located in the European continent and is known as the largest city in Europe.
Export to Russia
For years, valuable economic interactions between the two countries of Iran and Russia have been going on, so that in 2021, the volume of economic exchanges between the two sides was about 4 billion dollars.
The export of commodities is considered one of the important issues for the prosperity of businesses and foreign exchange in the country. Considering the size of the Russian market, many Iranian businessmen are interested in exporting to Russia. The weather conditions of this country have made it impossible to produce and cultivate many products. Since Iran also has a prosperous agriculture due to its four seasons, good weather and fertile soil, therefore exporting to Russia can be very profitable for producers, farmers and traders. Due to its location on the edge of the Caspian Sea, this country is adjacent and close to Iran, which reduces export costs and facilitates the transit of all kinds of commodities. But it should be noted that exporting to Russia has its own conditions and rules and must be taken into account while exporting the product to Russia.
Russian market
The Russian market has great potential that has provided great opportunities to Earning foreign currency. Because domestic production products do not meet the needs of the country’s population of about 150 million, and its weather also prevents the increase in production volume in this vast country. Russia is the world’s largest country, covering a wide range of topographically diverse territories, including many areas inaccessible by conventional transportation methods. Russia is currently the second largest exporter of oil in the world. One of the important goals of Russia is to increase the production and export of this country’s oil and attract new emerging markets and stabilize it in the long term.
Considering the conflict between Russia and Ukraine and the embargo on Russia by European countries, this position is very important for Iranian businessmen, especially since Russia has a very good business relationship with Iranians.
Also, in the past years, Russia was among the countries that entered this country in the form of a high-ranking delegation to start a new round of relations with Iran.
Considering the economic interactions between Iran and Russia from the past to the present day, the Russian market has received various products from Iran and Russian customers are well acquainted with the capability and quality of Iranian commodities. The entry of Iranian products and commodities into Russia also facilitates access to the market of other member countries of the Eurasian Union.
Russian economy
Russia’s vast geography plays an important role in its economic activity, which has more than 30% of the world’s natural resources. The country relies on energy income and has large amounts of oil, natural gas and precious metals, which make up the majority of Russia’s exports. Russia is an “energy superpower”. This country has the largest natural gas reserves in the world and is the largest exporter of natural gas and the second exporter of oil in the world.
Russia has great potential in many fields, including automotive, aerospace, military, agricultural and mining industries. In terms of technology, the country has made significant advances in fields such as IT, robotics, and artificial intelligence technology. Rich cultural and unique natural heritage along with extraordinary architecture and rich history of Russia has made it one of the popular tourist destinations in the world. Russia’s tourism industry has boosted its economy as a significant source of export income. The center of gravity of the Russian economy is “energy”, and the contribution of tourism and industrial production, especially its military industries, is also significant.
Along with Saudi Arabia, this country is known as the largest oil producer in the world and also has the largest natural gas reserves in the world. At the end of 2022, the turnover of Russian foreign trade amounted to 850.5 billion dollars, which shows an increase of 8.1% compared to 2021. Also, the country’s gross domestic product growth was 4.7%, which indicates a stable growth in the Russian economy.
Russia's vast industries
- Oil and Gas: Russia is one of the world’s largest oil and gas exporters. The industry accounts for a significant portion of the country’s gross domestic product and exports.
- Mines: Russia is rich in minerals and precious metals, including nickel, aluminum, copper, gold, platinum and palladium. The mining sector in this country plays an important role.
- Aerospace: Russia has a long history of aerospace engineering and is home to some of the world’s top aerospace companies such as Roscosmos and PKC.
- Defensive: Russia has one of the largest defense industries in the world and produces a range of military equipment including aircraft، missiles، and tanks.
- Agriculture: Russia has extensive farmland and is one of the largest producers of wheat, barley, sunflower seeds and other crops in the world.
- Production: Russia has the production infrastructure of basic industries. And in the nuclear power industry, it is in the top ranks of the world.
- Technology: Russia has a growing technology industry, with several well-known startups and companies leading the way in areas such as software development, e-commerce, and artificial intelligence.
Business relations between Iran and Russia
Iran-Russia Business is progressing
These days, more than ever, Iran and Russia are strengthening their political-commercial relations as strategic partners, so that the frequent visits of high-level political-commercial delegations of the two countries and the signing of agreements and important commercial documents between Iran and Russia have grown significantly. Benefiting from 24 special economic, commercial and industrial zones, and being a member of important international and regional organizations and agreements such as Shanghai and Eurasia, Russia is considered the biggest historical opportunity for the export of Iranian products and services.
.
These days, more than ever before, Iran and Russia are strengthening their political-commercial relations as strategic partners.
So that the frequent visits of high-ranking political-commercial delegations of the two countries and the signing of memorandums and important commercial documents between Iran and Russia have grown significantly. Benefiting from 24 special economic, commercial and industrial zones, and being a member of important international and regional organizations and agreements such as Shanghai and Eurasia, Russia is considered the biggest historical opportunity for the export of Iranian products and services.
According to estimates, there is currently a 100 billion $ opportunity for Iranian commodities to enter Russia. With the conclusion of the free trade agreement between Iran and the Eurasian Economic Union, we are moving towards a free trade agreement with about 8350 items in the commodities classification system, and gradually about 90% of the customs tariff codes will be zero.
The Russian Federation has $1,900 billion in gross domestic product and an average of $850 billion in trade with the rest of the world, making it one of the most thriving investment markets in the world. According to the Chamber of Commerce and Industry of the Russian Federation, the total exchange between Iran and Russia at the end of 2022 amounted to $4.9 billion, which is 20% higher than in 2021.
Advantages of exporting to Russia
The big Russian market with a population of about 150 million people is one of the largest markets in the region and the world. Companies can gain a share by being active in different sectors of this market, including industrial, food, service, petrochemical, etc.
Due to the diversity of export and imported products of the two countries, trade with Russia as an important market for Iran presents broader opportunities for Iran. As Iran’s neighbor, Russia 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, construction and energy industries, electronics, automobile manufacturing, auto parts, appliances, etc. It could bring new opportunities for the two countries.
Iran and Russia, as two countries with important geographical locations, use railway lines, logistics and airlines with easy access to other markets. The trade restrictions between Russia and Europe have created unique opportunities for Iranian businessmen.
In summary, trade with Russia is a very important opportunity for Iran, which as a large and diverse market can help the development of Iran’s exports and imports. Russia is currently known as one of Iran’s biggest trading partners and a significant amount of Iranian products are exported to Russia every year.
North-South Corridor
The North-South International Transport Corridor is one of the most important communication highways from West to South Asia, which was established on September 12, 2000 in Saint Petersburg by the three countries of Iran, Russia and India in order to promote transport cooperation.
This corridor connects the Indian Ocean and the Persian Gulf through Iran to the Caspian Sea, then through Russia / Saint Petersburg to Northern Europe. This passage is the most important trade link between Asia and Europe, which is 40% shorter in terms of distance and time and 30% more economical in terms of cost. The closure of western markets due to sanctions and the breakdown of logistics chains that connect Russia to Europe have increased the attractiveness of Iran as an important transportation 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 that have the closest distance to each other to have a positive effect on both speed and transportation costs. The longer the distance between the two selected ports, the longer the time for the cargo to arrive at the destination and the corresponding costs will increase.
Among the special areas of the port economy, the two areas of Lotus Astrakhan and Makhachkala port are of special importance since they are located in 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 west coast of the Caspian Sea. The Makhachkala ports are the only Caspian Sea ports in Russia that do not freeze in the winter, and are therefore active throughout the year and are considered to be the most important ports of Russia. The development of logistic infrastructure and the establishment of transport links with other countries and regions of Russia are the main objectives of the makhachkala ports. Caspian Sea ports are of strategic importance to Russia because they can transport commodities from India، China، Kazakhstan، Turkmenistan، Iran and vice versa in new international routes. In addition, sea transportation is the most economical type of transportation which reduces the cost of shipping of exported commodities.
The reason for the establishment of "Iran-Russia Trade House" in Makhachkala
Makhachkala is known as an international regional hub in Eurasia, as it is easily accessible by businessmen from Georgia, Armenia, Azerbaijan and Iran.
Makhachkala, as an export port for Iranian commodities, is located in the vicinity of the North-South strategic corridor.
“Fardad Expo” in Makhachkala is a smart commodities distribution platform in Russia. “Fardad” group of companies is marketing Iranian commodities and services throughout the Russian Federation. Therefore, Makhachkala is a high-speed port for the storage, processing and distribution of Iranian goods in order to distribute Iranian commodities intelligently in Russia after marketing. Makhachkala, benefiting from 2 ports, 4 seasons, international airport and being located along the north-south corridor, has earned the title of the golden region for the export of Iranian commodities.
Basically, Makhachkala is a strategic region in Eurasia that brings the cost of exporting Iranian commodities and acts as a strategic hub for the distribution of Iranian commodities in Eurasia.
Iran-Russia trading house
“Iran-Russia Trade House” is the permanent trade center of Iran in Russia with an official license from the Iran Trade Development Organization, located in the city of Makhachkala, the capital of the Russian state of Dagestan. This gathering is the largest and most prestigious permanent exhibition of Iranian products at the international level, which is held for the first time in Russia.
“Fardad LLC” company is registered in the Russian Federation and is active as the head office of this group in Moscow. For this purpose, we invite all the respected Iranian manufacturers and traders to participate and introduce their products in the permanent location of the Iranian commodities trade center “Iran-Russia Trade House”.
Our goal is to set up a “Commercial Embassy” of Iran next to the “Political Embassy” of the Islamic Republic of Iran in Russia. In fact, to activate economic diplomacy, we have launched the largest “Iranian Brand Center” in Russia.
arena of activity of Iranian export commodities by Fardad group of companies
- Food and beverages
- Iranian dried fruit
- Fisheries and Aquatics
- Agricultural and livestock industries
- Medical and laboratory equipment industries
- Household appliance industry
- Construction and energy industries
- Information and Communications Technology
- Automobile industry – engine and industrial machinery
- Mineral-metal industries and advanced raw materials
- Pharmaceutical and health industries – cellulose
- Packaging and plastic industries
- Electrical and electronic industries
- Petrochemical and oil base industries
- Clothing industries – leather and shoes
"Fardad" group of companies
“Fardad” group of companies, with more than 15 years of history and operational experience in the business environment of Iran and Russia, is one of the first founders of the basic export of Iranian commodities and services to Russia.
Our vision is “increasing the share of Iranian products in the large import market of Russia”. In this regard, in the past decade, we have had various micro and macro exports with the help of a large part of Iranian producers to Russian markets.
We were among the first companies to welcome the North-South corridor in the business space of Iran and Russia, and by using our capacities in Russia, Iran and India in the field of combined transportation, we reduced the cost and time of transportation by 40%. We reduced. And we led to an increase in export profits for customers.
“Fardad” group of companies centered on “FARDAD L.L.C” registered in Moscow and centered on “Fardad Tejarat Behrad” registered in Tehran, seeking to achieve the “goal of the Joint Economic Commission of Iran and Russia” regarding the achievement of annual trade of 40 billion $ between Iran and Russia.
.
“Fardad” group of companies in “Iran-Russia Trade House” with the benefit of two truck customs, two sea customs and one rail customs as a large logistics center, all fields of storage and distribution of Iranian goods in a ten-hectare area. Far Ohm has been brought in Russia to be the agent of distribution of all Iranian commodities and services to other regions of Russia in proximity to rail, sea and north-south corridor.
This collection is completely specialized and with more than two decades of presence in the field of global trade in the fields of export and import and with full knowledge of the characteristics of the market of Russia and Eurasia regions and knowledge of the distribution networks in these countries, holding international and specialized exhibitions, elites comprehensive and complete to the laws of international trade and investment, having experienced lawyers, experienced and specialized staff in business matters and with complete command of the language of these regions and powerful marketing teams in Iran and Eurasia regions and having a two-story space with an area of More than 10,000 m2 with permanent and unique exhibition facilities and facilities, we have provided a suitable platform and background for concentrating Iran’s manufactured products and entering them into a thriving market.
“Iran-Russia Trade House” as an export assistant for Iranian manufacturers and traders will greatly help to increase the operating profit of Iranian brands by reducing export costs and as a “smart export management platform” for the smart export of Iranian commodities and services to Russia and other member countries of the Eurasian Economic Union, including Belarus, Kazakhstan, Armenia and Kyrgyzstan.
