Development of the Russian agroindustrial exports in the context of membership in the Eurasian Economic Union

The aim of the study is to propose and substantiate recommendations for development of the export potential of the Russian agro-industrial complex (AIC) in the Eurasian Economic Union (EAEU). The paper assesses the benefits of the Russian agro-industrial complex within the EAEU and measures to extract them for exporters. It develops recommended measures of state support that promote development of the Russian agro-industrial complex under EAEU membership conditions. The author considers state regulation measures for the following sectors of the Russian agro-industrial complex: agriculture, food industry, agricultural machinery, and fertilizer production. The author makes the following conclusions in the work. Russia exports to the EAEU products that are less in demand on other external markets. Overall, Russia’s trade relations with the EAEU countries are as follows: 1) companies in the agrochemical and food industries are in a winning position; 2) a relatively positive effect is observed in the agricultural machine building industry; 3) a relatively negative impact is observed in the dairy industry and production of meat products (due to competitive pressure from Belarusian producers). To improve the competitiveness of Russian products, as well as to identify their niche in the EAEU market, enterprises should be assisted in finding new markets and developing cooperation. The diversification of export-oriented production, which has already established itself in the external market, can be used to consolidate markets on the territory of the EAEU to sell goods. Here, the capacities created to assist subjects of industrial-innovation activity and production of innovative goods (for example, in agricultural robotics) should be attracted.

1. Agroexport (2021). Federal Center for the Development of Exports of Agricultural Products of the Ministry of Agriculture of Russia. Accessed 11.08.2021. URL: https://aemcx.ru/export/rusexport/

2. Belstat (2021). National Statistical Committee of the Republic of Belarus. Accessed 13.08.2021. URL: https://www.belstat.gov.by/ofitsialnaya-statistika/realny-sectorekonomiki/vneshnyaya-torgovlya/vneshnyaya-torgovlya-tovarami/godovye-dannye/

3. Vartanova, M. L. (2019). Problems and prospects for the development of the agroindustrial complex of the EAEU countries. Food policy and security, 6 (3), 159–172. DOI: 10.18334/ppib.6.2.41388.

4. Mutual trade in goods (2020). Statistics of the Eurasian Economic Union. 2019: Statistical compendium; Eurasian Economic Commission. Moscow: Publishing house LLC Sam Polygraphist. 380 p.

5. Evstafi ev, D. G., Kusainov, A. M., Masaulov, S. I. et al. (2018). EAEU Growth Points: Economy, Security, Society. Russian-Belarussian Expert Club, Center for the Study of Integration Prospects. Moscow. 48 p. Accessed 11.08.2021. URL: https://eurasia.expert/upload/Tochki-rosta-EAES.pdf

6. Eurasian Economic Commission (2021). Statistics of foreign and mutual trade in goods. Accessed 14.08.2021. URL: http://www.eurasiancommission.org/ru/act/integr_i_makroec/dep_stat/tradestat/tables/intra/Pages/2020/12_180.aspx

7. Ivanova, S. V., Latyshov, A. V. (2019). Trade of the EAEU countries in agri-food products: trends, collisions, factors. International trade and trade policy, 4(19), 120–134. DOI: http://dx.doi.org/10.21686/2410-7395-2019-4-120-134.

8. Kiselev, S. V., Romashkin, R. A. (2020). Development of agriculture in the Eurasian Economic Union: achievements, challenges and prospects of the agro-industrial complex. AIC: economics, management, 1, 74–90. URL: https://www.elibrary.ru/item.asp?id=42386429

9. Kiselev, S. V., Romashkin, R. A. (2021). State and prospects of Russian agro-food exports to the countries of the Eurasian Economic Union. Studies on Russian Economic Development, 2, 1–10.

10. Ksenofontov, M. Yu., Polzikov, D. A., Urus, A. V. (2020). Scenarios for the development of the agro-food market of the EAEU in the long term. Studies on Russian Economic Development, 6, 154–171. DOI: 10.47711/0868-6351-183-154-171.

11. Panteleeva, O. I. (2018). Export of agricultural products: can Russia become one of the leading exporters in the world? Central Russian Journal of Social Sciences, 13(3), 118–136. DOI: 10.22394/2071–2367–2018–13–3–118–136.

12. Romashkin, R. A., Kiselev, S. V. (2020). Export potential and complementarity of Russian agro-food trade in the market of the Eurasian Economic Union. IV Russian Economic Congress REC — 2020. Vol. 16. Thematic conference “Industry markets and industrial policy” (collection of materials). M., 30–33.

13. Agreement (2019) “On measures aimed at unifi cation of selection and breeding work with farm animals within the framework of the Eurasian Economic Union”, dated October 25, 2019 (entered into force for the Russian Federation on May 6, 2021).

14. Agreement (2017) “On the circulation of seeds of agricultural plants within the framework of the Eurasian Economic Union”, dated November 7, 2017.

15. The strategy of Russia’s presence in the world food markets (2019). Paper for XX Apr. int. scientifi c conf. on Problems of Development of the Economy and Society, Moscow, 9–12 April. 2019 / A. Yu. Ivanov, K. Yu. Molodyko; National research University “Higher School of Economics”. M.: Ed. house of the Higher School of Economics. 73 p.

16. Ultan, S. I., Rogovskaya, N. Yu. (2012). Methodological foundations for the formation and study of the export potential of the industry (on the example of the non-ferrous metallurgy industry). Bulletin of the Omsk University. Series “Economics”, 1, 26–32.

17. Amirbekova, A. (2016). Theoretical Aspects of Export Potential, its Essence and Development. Trade policy, 4/8, 93–100.

18. Benesova, I., Maitah, M., Smutka, L., Tomsik, K., Ishchukova, N. (2017). Perspectives of the Russian agricultural exports in terms of comparative advantage. Agric. Econ. Czech, 63, 1–13.

19. Decreux, Y., Spies, J. (2016). Export Potential Assessments. A methodology to identify export opportunities for developing countries. 31 p. Accessed 12.08.2021. URL: https://umbraco.exportpotential.intracen.org/media/1089/epa-methodology_141216.pdf

20. International Trade Centre (2021). Trade Map. URL: https://www.trademap.org

21. Liefert, W. M., Liefert, O. (2020). Russian agricultural trade and world markets. Russian Journal of Economics, 6, 56–70. DOI: 10.32609/j.ruje.6.50308.

22. Maslova, V., Zaruk, N., Fuchs, C., Avdeev, M. (2019). Competitiveness of Agricultural Products in the Eurasian Economic Union. Agriculture, 9(61), 1–14. DOI: https://doi.org/10.3390/agriculture9030061.

23. Shik, O. V. (2020). Public expenditure for agricultural sector in Russia: Does it promote growth? Russian Journal of Economics, 6(1), 42–55. DOI: 10.32609/j.ruje.6.49756.

24. Spies, J. (2018). Export Potential Map. Trade & Market Intelligence section (ITC). ARTNeT Conference, Bangkok, 27 November 2018. Spot opportunities for trade development. 46 p. Accessed 12.08.2021. URL: https://www.unescap.org/sites/default/files/27%20Nov%2018_Session%203%20-%20Assessing%20and%20reaching%20trade%20potential%20ITC%20Export%20Potential%20Map_0.pdf