Export to Russia

Despite the deep recession in 2009 the average annual growth rate in Russia has been almost 5% in the past 10 years. Danish export has risen sharply during these years. However, Denmark is lagging DKK 6.3 bln behind compared to the Baltic Sea countries.

Russia was one of the countries hit hardest by the global crisis, but despite the dramatic drop in 2009 the Russian economy is back on track and provides better market conditions for Danish companies.

The average income in Russia has reasonably grown in the past 10 years and Western high-quality products are in enormous demand. Improving living standards have had a great influence on political stability. Russia’s foreign debt has been considerably reduced. Government fiscal policy has been responsible which together with the rising foreign exchange rate in 2010 has reduced inflation to the lowest level ever. Russia today is Denmark’s 14th largest export market which accounted for DKK 9.5 bln worth goods in 2010 (about 2% of the total Danish export). Meat and meat products together with machinery and appliances for industry are the largest commodity groups.

Even though the growth of Danish export to Russia is impressive, Danish companies have in fact not exploited the market potential to the same extent as the Baltic states. If the Danish export had been on the same level as the Baltic neighbors, would today’s export have been DKK 6.3 bln higher.

 

Top 10 Russian import from Denmark, 2010

 

Bill. DKK

% of total

Food, beverages and tobacco

2,66

27,41%

Machinery and appliances, non electrical

1,26

12,96%

Non-durable consumer goods

1

10,35%

Chemical materials and products

0,74

7,60%

Products for use in construction activities

0,54

5,57%

Electrical machinery, apparatus and appliances

0,47

4,88%

Other raw materials and semi-manufactures

0,45

4,64%

Parts and acc. of non-electrical machinery

0,34

3,54%

Feeding stuff for animals

0,24

2,49%

Parts and accessories of electrical machinery etc.

0,19

1,91%

Source: Danish Industry