Machinery and equipment
The machinery and equipment industry in Russia and the CIS is developing at the confluence of three separate factors: natural resources, sanctions, and EAEU policy. The CIS countries are rich in natural resources, especially oil and metals, which make up significant fractions of these countries’ GDP. These industries are heavily dependent on specialized technology and equipment to extract the resources, the majority of which is foreign-made.
The imposition of sanctions on Russia, by far the largest and most developed economy in the bloc, have negatively affected the machinery and equipment industry through prohibitions on dual-use equipment, energy equipment, and financing.
As a result of a need for foreign equipment and geopolitical roadblocks to acquiring it, EAEU policy has focused on import substitution, improving innovation, and developing new high-tech production sites. These result in an attractive combination of demand and government incentives for foreign investors and producers.
SCHNEIDER GROUP can help companies who are interested in entering the CIS and EAEU markets or localizing their production there to take advantage of the persistent opportunities in the machinery and equipment industry.