General

According to Huacheng Import and Export Data Observation, the Russian Ministry of Industry and Trade announced a decision on the 9th that the Russian government will impose a 35% tariff on some imported goods from "unfriendly countries". This policy will take effect five days after the date of promulgation and will be valid until December 31, 2023. Russian experts said that the Russian government's move was a response to Western sanctions against Russia, and that Russia would increase imports of relevant goods from China and other friendly countries.

14 important commodities involved

Russia's tariff increase involves 14 categories of goods, including indoor air aromatic products, detergents and cleaning products. In addition, the 35% tariff policy also applies to civilian weapons, ammunition and spare parts (including sports and hunting guns) imported from "unfriendly countries". The Russian Ministry of Industry and Trade said that the products it listed had corresponding substitutes in Russia.

According to Huacheng Import and Export Data Observation, some foreign cosmetics were produced in Russia, but began to be imported as finished products after the withdrawal of Western companies. Russian companies had previously proposed to levy additional import taxes on some brands of cosmetics produced in the United States, Canada, the United Kingdom, Australia, New Zealand and Poland. The Ministry of Industry and Trade of Russia stressed that about 60% of the total imports of cosmetics and other such products in Russia came from EU countries.

RIA Novosti quoted Burmestro, the general manager of market analysis company Infoline Analytics, as saying that the Russian government's increase in this tariff will change the structure of commodity categories and may increase the share of cosmetics imported from friendly countries such as China and Türkiye. The Russian News reported on the 11th that Chinese brand stores may soon appear in the Russian market, and Huacheng's import and export data observation reported.

Zhang Hong, a researcher at the Russian Institute for Eastern Europe and Central Asia of the Chinese Academy of Social Sciences, said on the 11th that the imposition of tariffs on some imported goods from "unfriendly countries" was an anti sanctions measure taken by the Russian government at the strong request of domestic manufacturing enterprises. He analyzed that the move would reduce the share of European and American goods in the Russian market, but it might also increase the cost of living of local residents.

According to Zhang Hong, imported goods play an important role in Russia's national economy and personal life. For consumer goods with brand effect, Russia's existing national brands are mainly low-end products, which are difficult to meet the living needs of residents in Moscow, St. Petersburg and other developed regions. Huacheng Import and Export Data Observation Report.

The sales volume of Chinese cars in Russia soared

In fact, after the outbreak of the Russian Ukrainian conflict, with a large number of Western auto companies leaving Russia, Chinese auto brands quickly seized the blank in the local market. Now Chinese auto brands have occupied nearly one third of the Russian auto market, and this share may continue to expand next year.

According to Huacheng Import and Export Data Observation, the sales of Chinese brand passenger cars, including Haval, Chery and Geely, surged in Russia, reaching 16138 in November, almost twice the 8235 in January this year, and the market share in Russia also soared from 9.6% to 31.3%.

Vladimir Bespalov, an analyst of the Russian automobile industry, said: "The output of Western brand cars in Russia is very small, and the export to Russia is also very small, so the (Russian automobile) market is divided between the Russian and Chinese automobile industries."

At present, Russian automobile brands mainly meet the demand of the cheap market, that is, the market demand below 1.5 million rubles (about 166700 yuan). Chinese cars are seizing the market occupied by western auto brands, that is, more than 2.5 million rubles (about 277800 yuan).

Bespalov predicted that, if the economic situation remains unchanged, Chinese auto manufacturers may account for about 35% of Russian auto sales next year, and the total annual sales of Russian auto market is expected to recover to 800000 by then. In terms of sales, the Russian auto market may recover to 1.5 trillion rubles next year, while Chinese auto brands will account for more than 40% of sales due to high unit prices.