‘50 exporting companies are still not enough to open a separate REC window in Tatarstan’

Trade turnover between Russia and OIC countries increases to $156bn

The XV Russia — Islamic World: KazanForum 2024 International Economic Forum and the VII Russia Halal Expo exhibition were opened by Prime Minister of Tatarstan Alexey Pesoshin and Deputy Minister of Economic Development of Russia Dmitry Volvach. Foreign guests — Minister of Foreign Affairs and International Cooperation of the State of Libya Abdul Hadi Al-Hawaij, Deputy Minister of Economy of the UAE Abdulla Al Saleh, Chief Executive Officer at Islamic Chamber Halal Certification Services Ashraf Tanbouly have been visiting Kazan for already a couple of days. Rustam Minnikhanov, the rais of the Republic of Tatarstan, also arrived at Kazan Expo in advance to greet young diplomats, after which he held working meetings behind closed doors.

Alexey Pesoshin recalled that KazanForum has become a platform for dialogue, cooperation and mutual understanding between Russia and the Islamic world for several years. As last year, the forum was combined with the Russia Halal Expo (held for the seventh time), but this year companies from 11 states and 17 regions of the country took part in it.

According to the Tatarstan prime minister, the Islamic world has always been and remains one of the most important economic partners in the world for Russia. The trade turnover between Russia and the OIC countries has grown by 37% over the past three years and amounted to $156 billion.

“All the capacities of the Russian economy are aimed at a large-scale increase in productive forces and the service sector, the widespread strengthening of the infrastructure network, the development of advanced technologies, the creation of new modern industrial capacities and entire industries," Alexey Pesoshin stressed.

KazanForum promotes the “creation of a new world space”

Libyan Foreign Minister Abdul Hadi Al-Hawaij gave the event a political touch. According to him, the organisation of the Russia — Islamic World: KazanForum 2024 International Economic Forum contributes to the “creation of a new world space” that will protect the interests of small countries, in particular his country.

“This is going to be a new multipolar world, where the collective will of peoples will be embodied, where fruitful economic cooperation will develop," he hopes and notes that Islam is a religion of peace that fights against extremism and terrorism.

Deputy Minister of Economy of the UAE Abdulla Alsaleh reported on the growth of trade turnover between the Emirates and Russia. Last year, it amounted to $11.2 billion, while our country exported products worth $6.6 billion, and the UAE — by $4.6 billion. “I am sure this forum will contribute to further strengthening our business ties," he stressed.

Ashraf Tanbouly, Chief Executive Officer at Islamic Chamber Halal Certification Services, estimated the global halal market at $2 trillion. According to him, he goes beyond the borders of Muslim countries and “there is no doubt that Russia has every opportunity to become an important player”.

In fact, the exhibition was open for the second day, and those interested could see halal products even earlier. For example, Turkmenistan showed a large exposition of carpets and folk instruments, Azerbaijan came with newcomers — suppliers of compotes and tea, sausages. One could also see unusual rice from Pakistan, Turkey brought coffee, and India brought classic black tea. Minister of Agriculture and Food of the Republic of Tatarstan Marat Zyabbarov personally came to open the exposition of Malaysia with treats.

Many leading industrial groups of the republic presented their best projects and developments at KazanForum, including companies of TAIF Group, Tatneft, Alabuga SEZ and others.

Cancellation of duties on the supply of products to Iran

The business agenda of the forum once again revolved around two topics: how to export goods via eastern routes and how to ensure financial settlements. At the morning panel session, the head of the Ministry of Industry and Trade of the Republic of Tatarstan, Oleg Korobchenko, and the advisor to the Director General of Russian Railways Logistics JSC, Alevtina Kirillova, tried to demonstrate how three new routes to China and India work. The main news: starting from July 1 of this year, export duties on the supply of products to Iran have been cancelled.

“A special agreement is being prepared with the state corporation of Iran, which is authorised to supply goods in export and import. Taking into account the signed agreement with Iran and the Eurasian Union, it can be said that it will be ratified on July 1. This removes trade duties, and it is possible to activate foreign trade operations," said Alevtina Kirillova.

According to her, trains with special containers for storing perishable food have been launched in this direction. Currently, multimodal container transportation is carried out on three routes. A regular route to China operates from cargo consolidation points to key provinces of China — Shandong, Shanghai. Accelerated container trains depart from Rostov-on-Don, from Orsha station in Belarus and from Alma-Ata in Kazakhstan. If necessary, they are sent from the regions of Tatarstan and Bashkortostan.

A third route is under development — the North-South transport corridor, which is now actively developing. Its length is up to 8 thousand kilometres. It runs through the territory of Russia, Azerbaijan, Turkmenistan, and India. Saudi Arabia, the United Arab Emirates, Qatar, and Oman will be able to connect to it.

The head of the Ministry of Industry and Trade of the Republic of Tatarstan, Oleg Korobchenko, pushed manufacturers to expand into the markets of Southeast Asia. More than 50 exporting companies took advantage of the REC support measures (the Russian Export Center issues subsidies to compensate for transportation costs when exporting products). “But this is a small amount, and we need to try harder," the minister reasoned. According to him, the Tatarstan authorities are discussing the possibility of opening a branch of the REC in the republic.

“We talked about it yesterday. I think we need to push this issue," Oleg Korobchenko believes.

Besides, the Tatarstan budget is ready to co-finance subsidies provided by the REC and the Ministry of Industry and Trade of the Russian Federation. Korobchenko did not say how much money it was about, indicating only that the plans were huge. According to him, the volume of shipped products amounted to 4.7 trillion rubles and a fifth was exported.

“Now there are 30 Tatarstan companies at the exhibition. 85 foreign delegations are going to see them. It's clear, maybe these are not the people you need. But if you prepare letters for the Minister of Energy, Oil, Agriculture, then I am sure that you will sell," said the head of the Ministry of Industry and Trade of the Republic of Tatarstan.

In conclusion, he urged entrepreneurs to go on a business tour to Pakistan and India in September.