China saves the Russian trade with the BRICS
Since 2015 Russia’s trade with Brazil, India, China and South Africa has been steadily growing but exchange growth cools down as leaders of the five countries meet today at the 10th annual BRICS 2018 summit in Johannesburg, South Africa. Imports increase just over 0.3% and exports 0.9%. Whilst China improves its trade with Russia and India climbs positions, Brazil and South Africa struggle to keep up the pace, Maersk said Tuesday in its press release.
China has traditionally been Russia’s biggest trading partner within the bloc and No. 1 import origin globally and has in 2017 also become Russia’s No. 1 export destination. From Russia to China, the total containerised market is estimated to be around 112 000 FFE (forty-foot-equivalent units), while import market for containerised cargo is around 384 000 FFE. Overall, main commodities exported from Russia to China on containerised trade are mineral products and wood, while Russia primarily imports household goods, electronics, textiles, as well as equipment and machinery.
Mineral products are also main Russian export commodity to India, followed by paper, food and agriculture materials. In 2017 India occupied second place among BRICS nations for Russian exports and third place when it comes to Russian imports, which also include food and agriculture materials and equipment and machinery as top commodities.
“Looking just at the containerised exports, in the first months of 2018, the exports from Russia to China have grown by 22% compared to last year. In case of exports to India, the rise was up to 11.5%. Exports to South Africa remain steady, whilst exports to Brazil are going down,” says Alexander Bobrakov, Maersk Line’s Sales Director in Russia.
Brazil is Russia’s third largest export trade partner within BRICS and second largest in terms of imports, with Russia primarily exporting chemical and mineral products and importing food and agriculture materials.
South Africa is Russia’s smallest trade partner among BRICS nations, with food and agriculture materials being the most common commodity moved between these countries both in export and import.
Last year, the BRICS´ joint contribution to the world economy was 23.6%and according to the International Monetary Fund’s predictions, this is set to rise to 26.8% by 2022. The BRICS countries' share of the world's population is even higher: 41 percent in 2015.
“In the first quarter of 2018 compared to Q1 2017, containerised trade exchange between BRICS nations registered a growth of 1.5%. With these numbers on the table, BRICS will keep playing an important role in the future of global trade,” says Alexander Bobrakov.
The ongoing 10th BRICS Summit in Johannesburg, South Africa, 25-27 July 2018 is expected to be the right setting to further discuss best ways to boost trade among BRICS nations and with the rest of the world.
About A.P. Moller -Maersk
A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs roughly 76,000 people.
