The current sanctions imposed by EU countries and the US on Russian-made goods have affected the economy of Russia, leading to the necessity to divert its export markets to other countries particularly in Asia.
One major industry is the food and beverage segment which Russian manufacturers have seen growing potential for exports to countries like China and Vietnam amongst others.
Russia Agriculture Ministry has highlighted the strong potential of export of baby foods to densely-populated Vietnam, which it estimated at 8,000 tonnes worth US$60 million a year. Russia has become the Top 5 exporters of baby food products to Vietnam in 2022 and there is still room for growth as Russia only contributed 10% of all baby food imports which had a volume of 21,600 tons worth US$250 million. Baby foods imported from Russia is also competitively priced at 35.8% lower than the average price.
Russia also plans to increase its food and beverage exports to China, in which it has good trade relationship with. It plans to double its ice cream exports to China from 896 tonnes in 2021 to 1,900 tonnes by 2025. Correspondingly, the value of Russian ice cream exports to China is expected to rise from US$4.7 million to US$7.9 million, and its market share will increase from 3.8% in 2021 to 4.7% in 2025.
Russia is also looking at increasing its ice cream exports to ex-USSR compatriot countries like Uzbelistan and Kazakhstan