Ulyanovsk export hub to start working in Czech Republic this May
A representative office is created to promote Ulyanovsk goods at European markets with the minimum expenses for companies.
“The European Union is one of the largest markets, which is interesting for Russian companies to expand geography of sales, to increase volume of deliveries and to promote their products at foreign markets. Our colleagues have developed a number of proposals for stimulation of regional export through state support for shared use of a trade and logistic infrastructure. The enterprises will be able to sell customs-cleared products in the territory of the European Union, which will positively affect its competitiveness and make it more available for European consumers. The main products and manufacturing enterprises have been selected. These include furniture, interior design items, connecting and steel doors, and construction materials. it is predicted that over the first year of the hub's work at least 20 export commodity groups will be promoted; there will be at least 10 participants from the Ulyanovsk region's business community; at least 20 primary export contracts worth US$ 2-3 million will be signed”, - the Governor Sergey Morozov noted.
The agreement for creation of the representative office was signed by the Governor Sergey Morozov and Victor Pomeshchikov, Director General of MRK invest s.r.o, within the Czech-Russian business forum on 6 March.
The project includes an action plan for creation and maintenance of the infrastructure necessary for transportation, warehousing and promotion of goods in the priority countries by agents and distributors, assistance in searching for partners for the Ulyanovsk region's enterprises, negotiations between regional business and foreign companies, as well as promotion of regional brands. It will also help Ulyanovsk companies open their own representation offices abroad and create joint ventures in other states. The list of state support measures for exporters- members of the hub includes recovery of expenses for organization of the sales office, consulting services, legal, information and marketing support, promotion of goods, transfers, certification and product delivery.
“Thank to the opening of the logistic hub, there will be 2.5 times more export of products made by the Ulyanovsk region's enterprises for the Eastern Europe and countries of the European Union by 2025. When trying to enter European markets, companies have to face such barriers as complicated logistics, lack of goods in the warehouse, difficult shipment of products to the European market, high cost of samples' transportation, and search for potential purchasers of regional products and investors. The logistic hub is designed to facilitate transportation of goods with the Made in Ulyanovsk label to the Czech Republic, as well as to the whole Eastern Europe in the future. After testing, we are expecting to launch similar projects in Western Europe, the Middle East and Southeast Asia”, - said Ruslan Gaynetdinov, Chairman of the Board of the Ulyanovsk Region Corporation for Enterprise Development.
According to last year's results, the Czech Republic took the 11th place among trade partners of the Ulyanovsk region; the trade turnover made more than US$ 20.2 million. The list of goods exported to the republic include cars and automotive components, radioactive elements, accessories for machinery and equipment, fuel for aircraft, and products of wood processing.