Romanian Products Must Be Competitive To Enter Russian Market – Embassy Official

“Wagons made in Romania are 30% more expensive than those made in the Russian Federation, although they have the same technical parameters. Whoever produces a high quality product at a competitive price is successful on the market. It’s a free market,” Sidorov told Romanian businessmen interested in the Russian market during a meeting.

The Russian official answered a question from the representative of the company Romarc, specialized in rolling stock exports, on the difficult access Romanian companies have on the Russian market.

"It all depends on how active and how competitive those companies are. The company Upet Medias received an order machinery worth $100 million from Gazprom. If you come with competitive prices and a good offer of products, I’m sure you will get the right demand,” Sidorov said.

He said the potential of the trade exchange between Romanian and the Russian Federation is still used in a low proportion, although the business volume has increased three times nearly, reaching $5 billion in 2007.

Exports made by Romanian companies to the Russian Federation totaled last year $580 million, and $460 million was reported for the first half of the year, 80% up compared to the same period in 2007.

As far as Russian investments in Romania are concerned, the Embassy official said only Lukoil, Mechel and TMK, the largest Russian investors present on the Romanian market, have invested $1.5 billion.

"Russian companies are very interested in energy projects and in gas investments in Romania. As you are aware, Gazprom annually delivers five billion cubic meters of gas, and an even larger quantity transits the country, thus Romania, via its state companies, enjoys large benefits in terms of exports to the Russian Federation,” Sidorov added.

The volume of commercial trade  between the Russian Federation and Romania totaled $2.9 billion in the first half of the year, 32.1% up against the same period in 2007, which places Romania on the last position among Russia’s main European trade partners.

Commercial trade with Romania accounts for a mere 0.7% of the total volume of trade Russia has with European Unions states.