Russian non-energy export expected to reach $160 bln in 2019

The government expects that Russia’s non-energy exports will reach $160 bln in 2019, an increase of $9 bln compared with 2018, First Deputy Prime Minister, Finance Minister Anton Siluanov said at the meeting of the Presidential Council for Strategic Development and National Projects on Wednesday.

“Non-energy exports are expected to increase by up to $9 bln this year compared with last year, whereas the total amount will equal $160 bln,” he said.

According to the minister, a program to support producers that implement corporate competitive enhancement programs has been launched as part of the National Project ‘International cooperation and export’. “The program opens access to concessional financing of export projects. Commercial rates for banks participating in that program are reduced by 4.5 percentage points, with over 1,500 potential participants of the program attracted,” he noted.

Moreover, a law on VAT refund for services exports similar to exports of goods has been adopted as part of the National Project. “That will reduce the burden for companies exporting services, including transport companies and IT firms,” Siluanov stressed.

In compliance with the May decree by President of the Russian Federation of 2018, National Projects in 12 areas have been worked out (demography, culture, healthcare, education, housing and urban environment, ecology, roads, labor efficiency and employment maintenance, science, digital economy, small and medium-sized business, international cooperation and export). The implementation of National Projects expected by 2024 is estimated to cost around 25.7 trillion rubles ($391.6 bln).

First Deputy Prime Minister noted that the list of Russia’s national targets in the economy contains becoming one of the world’s top five economies, reaching economic growth rates above the global average and creating a high-productive export-oriented sector.