РУ EN

Hot line phone +7 495 660 75 89

logo

The rising sun economy: INNOPROM-2017 had resulted into turnover enhancement between Japan and Russia

30 March 2018
The rising sun economy: INNOPROM-2017 had resulted into turnover enhancement between Japan and Russia

RESPONSE TO IMPORT SUBSTITUTION

The Moscow office of Japan External Trade Organization (JETRO) is preparing for participation in INNOPROM-2018. It is intended to represent within the Exhibition more than ten companies as well as representative offices operating in Russia.

There will be countries’ national pavilion placed within the exposition. Machines, processing equipment and ordinary equipment for machine building industry in general will be represented. Moreover, one will have the possibility to observe transportation and position determination systems, press facilities produced in Japan and so on. JETRO expects participation in the industrial exhibition to strengthen cooperation between Russia and Japan from the economic and industrial points of view.


«JETRO’s priority goal is to provide support to Japanese small and medium-sized businesses which aim to launch or to expand business in Russia. In particular, participation in INNOPROM, the international exhibition, with a Japanese pavilion and organization of events will be helpful in promoting production issued in Japan. Besides, in response to import substitution policy of the Russian government, JETRO’s priority aim is to provide support to Japanese companies, which have business in Russia, concerning local procurement», - JETRO commented.

 

The organization expects the increase of export supplies, Japanese companies’ investment flows in Russia, arrangement of joint projects.


Decision regarding national pavilion’s establishment was made by Japanese government since a highly effective work had been implemented in 2017 when Japan was a Partner country of INNOPROM exhibition. Back then, one year ago, around 170 Japanese companies have taken participation in various events within exposition, new contracts valued at over $1 million have been signed with Russian companies. Sides made an agreement concerning instruments and factory facilities supply in order to increase the productivity of Russian enterprises.

«The government of the Russian Federation highly estimated Japanese exposition at INNOPROM 2017 and put a forward proposal to continue participation», - JETRO mentions. Moreover, 2018 was announced a year of cultural exchange between two countries what also strengthens cooperation. 

In fall 2017, the president of Russian Federation, Vladimir Putin personally invited to the next exhibition the representatives of Japan.

 

The participation of Japan as a partner country in the exhibition INNOPROM-2017 in Ekaterinburg brought a practical impact «We are waiting for the Japanese representatives at the exhibition in 2018»,

― Vladimir Putin said after negotiations with Shinzo Abe, Japanese Prime-Minister.


 

 
 

ROBOTS AND LEVITATION

On the venue of INNOPROM-2017 Japanese companies fixed the plans on a realization of new projects both with the representatives of Russian business and authority. For example, «Kawasaki», the administration of Ekaterinburg and the municipal enterprise «Water Treatment» signed an agreement on the integration of equipment of the Japanese company in the technology of sewage treatment. It is about a turbo blower on magnetic levitation, for the Russian housing and utilities This project is unique and first of its kind.

Japanese steel company Nippon Steel, «Evraz Tagil Metallurgical Plant» and «Mashprom» agreed on the inspection of equipment at the coke production of the Urals enterprise and the formation of recommendations for further technical re-equipment of a venue.

Russian company ABAGY Robotics System has signed an agreement of intentions with one of the leaders of robotic equipment FANUC Russia within the framework of the exhibition. The document has recorded plans to implement and launch at Russian enterprises universal robotic technology cells. Read more information about this project in one of the previous materials of INNOPROM VIEW.

During the panel discussions of INNOPROM-2017 the representatives of Japan and Russia discussed opportunities for cooperation in the industry.

 

«We are advancing the idea of Connected industries — combining things, people, technologies in the industrial system. Russia uses the same tools to strengthen links between different elements of production.In this regard, our countries are moving in one direction and can cooperate »,

— Minister of Economy, industry and Trade of Japan, Hiroshige Seco reported during the Russian-Japanese industrial forum.


 

 

EIGHT-POINT PLAN

According to the results of 2017, Japan ranked eighth in the list of major trading partners of Russia. The Minister of Economic Development of Russia Maxim Oreshkin reported that trade between the countries grew by 14% and amounted $18.3 billion. The growth was achieved through the eight-direction cooperation plan proposed by the Prime Minister of Japan, Shinzo Abe, in 2016.

 

«Within the framework of the plan, a pool of priority Russian-Japanese projects has been formed and more than 100 documents have been signed during the last year. Some of these instruments have been transformed into binding agreements: «Mitsui» bought 10% of shares of pharmaceutical company «R-Pharm», the Russian-Japanese investment fund was created, the master-plan of Vladivostok was developed»,

pointed out Maxim Oreshkin.


 

 

Another initiative of «The eight-point cooperation plan» is to diagnose the performance of 12 Russian enterprises by Japanese specialists. Already now the recommendations formed by the Asian experts, are used on manufactures of agricultural technologies and suppliers, at the enterprises of metalworking.


«As a result of the synergy between Japanese and Russian competencies, there are agreements to launch new joint projects. For example, according to the results of the visit of Japanese specialists to the company «Istok-Audio» in town Fryazino near Moscow, it was decided to start joint development of a unique Device «Smart House», designed for elderly people with hearing impairment»,

― the Minister of Industry and Trade of Russia, Denis Manturov said.


 

According to the data provided by the Ministry of Finance of Japan, last year export from Russia to Japan increased by 26.6, 6% — to $14.1 billion dollars, import from Japan to Russia — by 21.5%, i.e. to $6 .1 bln. Almost 70% of exports from Russia to Japan are in the supply of oil and petroleum products, liquefied natural gas and other types of natural fuel. Export of Russian grain grew by 42% to $56 million.

In deliveries of products from Japan to Russia the share in 56% occupies auto- and motor, 18%-Japanese devices and equipment. According to the information of the Federal Customs Service of the Russian Federation, Japanese rubber, and products made of it are supplied in substantial volumes.

STAGES OF DEVELOPMENT

The largest in terms of investments are Russian-Japanese projects in the fuel and energy sector-«Sakhalin-1» and «Sakhalin-2». Crude oil is exported from «Sakhalin-1» and «Sakhalin-2» deposits are oil and liquefied natural gas (LNG). The share of participation in the «Sakhalin-1» project of Japanese investors represented by the consortium «SODEKO» is 30%. In the «Sakhalin-2 project», the Japanese company Mitsui & Co. Owns 12.5% of shares, the Japanese company Mitsubishi Corporation-10% of shares. «Sakhalin-1» has recently started the second stage of development of the ODOPTU deposit. In 2018, the company agreed on the processing of associated gas on «Sakhalin-2», but in addition, «Sakhalin-1» wants to build its own «Far Eastern LNG» worth $8 billion.

In Russia there are more than 18 large-scale projects in the domain of automotive and special equipment production, which were launched by Japanese corporations. In St. Petersburg was built factory «Toyota Motor» (production capacity of 100 thousand cars per year). In Primorsky Krai, LLC «Mazda Sollers Motor Manufacturing»-joint venture «Mazda Motor Corporation» and PJSC «Sollers», each year at the site collect 60 thousand. Machines. In Kaluga region on the basis of industrial park «ROSVA» Company «Mitsubishi Motors Corporation» and group «PSA Peugeot Citroen» have organized joint LLC «PSMA Rus», producing more than 120 000 of autos.

Also, the countries are engaged in an active dialogue about the possibilities of digital projects in Russia, start pharmaceutical companies and medical institutions.

Russian and Japanese businesses are looking for new ways to establish cooperation and are negotiating to strengthen existing partnerships. In the framework of the upcoming Innoprom The exhibition participants will be able to familiarize themselves with new technological possibilities of other countries and show their projects. We invite you to take part in the exposition and in the upcoming events.

All news
  • Sponsors
  • Partners
  • Media partners
  • Business program partners
  • Organizers

  • Operator
  • TECHNICAL SERVICE
  • Recommended builder
  • Service Partner