A view of the stone industry in Russia

Studies on the market share of the stone industry in the Russian Federation show that more than 70% of this market is held by large construction and building contracting companies, and between 10 and 15% of it is held by chain stores (network retail), and the rest is the share of the free wholesale market.

Construction in Russia increased by 9.60% in October 2022 compared to the same month of the previous year. The volume of residential construction in Russia experienced the greatest growth in the Southern Federal District in the first six months of 2022 compared to the same period of the previous year, by more than 67%. In the Volga Federal District, residential construction grew by nearly 26%.

The record for Russian construction in 2022 is 102.6 million square meters of residential real estate.

The top three companies in terms of construction volume in Russia in 2022 were PIK Group, Samolet Group and LSR Group.

The PIK Group of Companies retained its leadership in terms of housing construction volumes in Russia.

The company has 81 residential complexes, 278 apartments and three apartment complexes under construction.

The total area of ​​housing under construction of the company is 6 million square meters.

The second place is taken by the Samolet Group of Companies with a construction volume of 3.28 million square meters.

The company has 30 residential complexes, 155 apartments and 21 apartment complexes.

The third place is occupied by the LSR Group, whose construction volume is 2.59 million square meters.

The fourth place is occupied by the Setl Group holding with a construction volume of 1.86 million square meters.

The fifth place is occupied by the FGC company with a construction volume of 1.37 million square meters.

At this time, government support measures for developers were of particular importance:

Subsidized interest rates on housing construction loans,

Preferential housing loan program that provides developers with the necessary resources to launch new projects, and reducing the number of mandatory requirements and procedures.

With more than two decades of presence in the global trade arena and with full knowledge of the characteristics of the Russian market and the Eurasian regions, as well as knowledge of the distribution networks in this country and comprehensive and complete knowledge of international trade and investment laws, Fardad Group of Companies has provided a suitable platform and background for the entry of Iranian products into the booming Russian market.

Stone Industry Market in Russia

One of the reasons for the importance of the Russian stone market for Iranian stone industry activists is the high import rate of this country. Despite the granite and various stone mines in Russia, this country always meets part of its needs through imports, because Russian stone mines do not meet the needs of this country.

The presence of large construction and building contracting companies in Russia is one of the most important reasons for the high potential of this market for Iranian stone activists, and it has a very large market and at the same time the consumption of decorative stones is very high. On the other hand, good political relations between Iran and Russia have paved the way for Iranian businessmen to this country to a large extent.

There are many stone suppliers in Russia that offer a wide range of natural and artificial stones for various applications.

Some of the popular stone suppliers in Russia in 2022 are:

Stone Group International

A leading supplier of natural stone products, including marble, granite, limestone, and travertine.

Eko-Stone

A supplier of artificial stone products, including quartz, marble, and granite.

Stone Center

A supplier of natural stone products, including marble, granite, and onyx.

Stone Center

A supplier of natural stone products, including marble, granite, and travertine.

Belvneshtorg

Supplier of natural stone products including granite, marble and limestone.

Euro Stone

Supplier of natural and engineered stone products including granite, marble, quartz and porcelain.

Stone Depot

Supplier of natural stone products including marble, granite and quartzite.

These are just a few of the many stone suppliers available in Russia in 2022. The choice of supplier depends on the specific needs and requirements of the project.

One of the largest stone export markets for Iranian manufacturers is Russia. Russia is a very thriving market for Iranian stone exports due to its good trade relations with Iran and the disputes it has with Ukraine and Turkey. Russia has a population of 142 million, and due to its climate, building stones are widely used there.

Top Stone Importing Countries to Russia

Russia imports stone from various countries around the world. Choosing the best country to import stone to Russia depends on various factors including the type of stone needed, availability, quality and price. Some of the countries known for exporting quality stone to Russia are:

1. Italy – known for its marble and granite products.

2. Turkey – exports a variety of natural stones including marble, travertine and limestone.

3. China – major exporter of granite and marble products.

4. India – known for its high-quality sandstone, granite and marble products.

5. Spain – major exporter of marble and granite products.

6. Brazil – exports a variety of natural stones including granite, marble and quartzite.

7. Egypt – exports a variety of natural stones including limestone, granite and marble.

Ultimately, the best country to import stone from Russia depends on the specific needs and requirements of the project, as well as the availability and affordability of the stone products.

Markets and transactions in Russia were greatly affected by the sanctions imposed on Russia following the war with Ukraine. The stone market is one of these markets. Russia, which had become one of the largest markets in the world, is now experiencing an unprecedented shortage due to the sanctions.

Ukraine and Turkey, which were among Iran’s biggest competitors in stone exports to Russia, currently have minimal exports to Russia due to political and military problems.

Marble, travertine, granite, basalt, limestone, etc. are among the stones imported to Russia.

The Russian stone market and Russian-speaking countries are a definite share of the Iranian stone industry in the global markets.

An important issue that draws attention here is the weakening and general withdrawal of companies from the Russian market after the challenges related to Ukraine, which itself confirms a very good opportunity for Iranian brands to be present in the Russian market.

Advantages of exports for Iranian manufacturers over Turkish and Chinese manufacturers in the Russian market
All raw materials for this industry are supplied from within Iran.
The cost of energy resources in Iran is much lower.
The cost of human resources in Iran is much lower.
Equipment and industries in this field are ready to produce these products with a very high capacity.
Exports of Iranian products to Russia are carried out at much lower costs than Chinese goods.

Considering the above, in recent years Iran has strengthened its trade relations with Russia, and an important point in exports to Russia is the issue of quality control of products. Given the strictness that is applied in this case, low-quality Chinese stones do not have many fans in the Russian markets, and Turkish products are offered at a higher cost price than Iranian products due to expensive raw materials and high fuel costs.

On the other hand, the high quality of Iranian stones, which are competitive with European products, and the variety of products, along with their reasonable prices, have made Iranian exported stones find many fans in Russia and have their own buyers.

Iran, given its numerous mines, convenient location, access to open waters, and low cost of stone production, can capture the booming stone export markets.

Key and important factors for the presence of Iranian manufacturers in the Russian market

According to the initial research conducted on the stone industry in the large Russian market and considering the key factors:

High and consistent quality of manufactured products

Preferential tariffs on import duties of Iranian goods to Russia

Low export costs of Iranian products to Russia compared to Western and Chinese goods

The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and low shipping prices

The absence of a large part of the market from famous Western brands

The possibility of rapidly expanding market share and access to the competitive and trade space in Russia

It can be said that there is a high economic justification for entering the large Russian-Eurasian market, and the Fardad Group of Companies is proud to establish effective and successful joint cooperation in this direction.