Moreover, they have spread to new markets despite the coronavirus pandemic, the absolute leaders in this sense being chemical and food companies.
“Between January and May 2020, Moscow-based companies exported their non-resource and non-energy goods to 151 countries. Besides this, many of them have become established on new markets amid the coronavirus pandemic. Some of the businesses that emerged on new markets in April and May did so with our financial assistance,” said Alexei Fursin, Head of the Moscow Department of Entrepreneurship and Innovative Development.
One of the recipients of Moscow Government subsidies for exporting companies for the first time exported $1.2 million worth of communications equipment to Belarus and Tajikistan. Another recipient exported 30 million roubles’ worth of polymer coatings to Ukraine. Other companies exported ophthalmic accessories ($5 million) to the United States and software ($2 million) to Japan. One of the Moscow-based companies used the export grant to sign a baby food contract with a Mongolian partner worth 4,000 euros.
A group of recipients have expanded into the British film market, selling distribution rights for films made in Moscow for 15 million roubles. PPEs worth $7 million have been delivered to Belarus.
“In the first five months of the year, Moscow-based chemical companies expanded to 17 new markets, food producers to 15 markets and the producers of non-metallic materials and goods to 14 markets. These Moscow companies have taken the lead in the export expansion during this period of time,” Alexei Fursin enthused.
Alexander Prokhorov, Head of the Moscow Department for Investment and Industrial Policies, added that the producers of meat and meat by-products were also actively developing their exports and supplied their products to 17 countries.
“The new countries on the list of Moscow exporters of meat and meat by-products are Mongolia, Equatorial Guinea, Ukraine and Jordan. In the first five months of the year, they exported $37.38 million worth of meat products, or nearly twice as much as in the same period of last year. Kazakhstan was the largest buyer: it imported $9.94 million worth of meat products, or 672.5 percent more year-on-year. Kazakhstan is also the largest importer of chemical goods manufactured in Moscow. It has bought $158.8 million worth of chemicals, or 8.33 percent more than in January-May 2019. The largest group of chemical exports included pesticides, tires, and washing and cleaning items,” Alexander Prokhorov noted.
He added that the Mosprom Centre, which has been set up at the department to help solve individual issues and to provide support to large companies, had conducted a successful online business mission with Kazakhstan in July 2020, in which 13 Moscow companies took part. The aim of the online format was to introduce new businesses and to analyse cooperation prospects. Face-to-face B2B events and meetings will be held at the second stage, when the coronavirus restrictions are lifted. Large Moscow food producers will continue working to increase the range of their exports heading to Kazakhstan’s supermarket shelves.
Moscow-based exporters of agricultural products have expanded to 13 new markets. In particular, they supplied several varieties of wheat to Tanzania and Nigeria, rapeseed to Turkey and China, as well as dried chickpeas to Kuwait and the United Arab Emirates. Moscow producers of consumer goods, electronics and electrical items exported their produce to 12 new markets, and the manufacturers of machinery, equipment, medical items and medicine expanded to 11 new markets.
From January to May 2020, non-resource and non-energy companies increased output by 43.5 percent to $12.8 billion. The largest increase was reported in the production of non-metallic materials and goods (up 40 percent), food products (17.3 percent), medical items and medicine (15.9 percent). In the sphere of high-tech products and materials, the largest increase was reported in the export of rotary compressors (by 680 percent), polypropylene (660 percent) and pipes for oil and gas pipelines (610 percent).
In order to support exporting businesses amid the coronavirus infection, the Moscow Export Centre held an online business mission between April and July for partners in Japan, as well as offered the participating companies 117 free accounts on the leading e-commerce platforms, including eBay.com (17), Alibaba.com (50) and Europages.com (50). As many as 120 Moscow-based exporting companies received 227.5 million roubles in financial support from the city.