Aeroflot has placed another order of 90 MC-21 passenger aircraft from UAC, to be delivered between 2029 and 2032. The aircraft is wholly Russian manufactured, and is designed to carry up to 211 passengers. The order basically means that Aeroflot will have replaced nearly its entire fleet of the 170 Airbus and Boeing aircraft it previously operated or purchased from the EU and the United States.
The 7th Russia-China SME Forum has just taken place in Moscow, with over 1,600 attendees and 800 Russian and Chinese businesses talking part. The even marks a positive shift in the importance of SME’s in the bilateral dynamic. Russia provided nearly US$11.6 billion worth of support to its own SME’s last year, while numerous Chinese SME’s have recently morphed into Unicorns. We examine this important business sector and what it means for developing Russia-China investments in the years to come.
Russia has finally begun to roll out its 5G national infrastructure, with the technology able to provide the digitalisation of finance and all industrial enterprises, the control of autonomous vehicles and robotic systems, the development of telemedicine, the operation of smart city systems, the connection of Internet of Things devices, and the creation of private technological networks at industrial sites. It will revolutionise the Russian economy.
Indian pharmaceutical companies are investing in Russia and building production facilities to produce various drugs. Tens of millions of dollars are being invested into production facilities in Russia Special Economic Zones near Moscow, Kaluga and the Russian Far East. They are replacing the Western pharma companies who exited in 2022.
Russia’s LNG storage is on track to be at 100% capacity to meet this winter’s demand, while the EU has fallen short of its storage targets. However, although the EU is unlikely to face energy cuts, other suppliers are taking advantage of the EU’s political position. The cost of natural gas in the European Union when compared to Russia is currently 976% more expensive.
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Russia’s 2026 wheat harvest has already produced enough for its domestic consumption, and it will concentrate the remaining crop harvest for its huge export markets. In contrast, the European Union now imports wheat from North America at 2.5 times the price of Russian wheat. A key part of Russia’s pivot to Asia strategy is a pivot to self-sufficiency – ensuring that its domestic production is in good health prior to engaging in exports of critical consumer products.
Russia’s Tatneft has entered into a JV with China’s NTL Chemical Technologies LLC, with initial investments of US$1.6 billion, increasing to about US$3.6 billion by 2035. The venture is involved in chemical processing and development to support Russia and China’s agricultural sectors as they move to eliminate reliance on Western producers.
Both Russia’s inbound and outbound tourism sectors are booming despite Western sanctions designed to prevent it. Instead, the market has completely recalibrated. We deep dive what is happening in this important development sector and the economic impact and investments this is producing both in Russia and in overseas markets.
Russia’s VTB bank has rolled out a QR code payment system throughout Thailand, allowing its Russian clients to make instantaneous payments of up to US$1,3460 a time via selected outlets. With 2 million Russian tourists expected to visit Thailand this year, the system bypasses Western financial sanctions and gives back independence to both Thai retailers and Russian consumers.
Russia has tweaked its inbound foreign investment requirements and is looking for FDI that will utilise Russian manufacturing to add value. In addition, the ‘buy-back’ re-entry requirements into Russia for companies that exited the market yet wish to return have been tightened. We also examine the current inbound FDI volumes into Russia and look at the numbers of Western investors remaining operational in the country.
Russia’s MC-21-310 aircraft, built using entirely Russian-made components, has taken to the skies for the first time, the state-run Joint Aviation Corporation (OAK) has said. The development of the aircraft renders Western aviation sanctions against Russia increasingly redundant and has instead boosted Russian engineering and manufacturing capabilities.
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