machinery

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.

Russian Pump Market

The Russian pump market is occupied by foreign manufacturers. According to estimates, the volume of the Russian pumping equipment market in 2018 was about 800 million EUR. Although the pumping equipment market is growing, the share of Russian companies in it is declining.

Major consumers of pumps in Russia mainly come from the oil, gas, and energy sector, chemical and petrochemical industries, and housing and communal services. Oilfield service companies in Russia are operating in one of the biggest oil production sectors, which are influenced by oil prices, the geopolitical situation, government policies, and the availability of technologies for geological exploration and mining.

The Russian government keeps pursuing a policy of import substitution, and incentives are available to investors who want to localize. National government programs support modernization of communal and engineering infrastructure, providing additional demand for pumping equipment.

Contact us

Denis Petrov
Senior Project Manager
+7 / 495 / 956 55 57

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