The October Revolution

In October 2024, two important documents were published immediately, approved by the President of the Russian Federation Vladimir Putin, for the creation of transport and logistics infrastructure in the country and abroad. These solutions are needed to boost the country’s export potential for the time being.

List of 25 missions published at the end of the extended meeting of the State Council of the Russian Federation on the topic «On export development», which was held by the head of state on September 25, 2024. Some of these relate to transport and logistics infrastructure - their implementation will help achieve the national target of increasing non-energy exports by two-thirds compared to 2023 by 2030.

The execution of orders will help increase the export of domestic goods, they will allow companies to reduce their costs, since the state will assume part of the costs. 

Thus, before December 1, 2024 the Government of the Russian Federation is instructed to consider the issue of sending part of the funds received as customs payments and exceeding the amount planned in the federal budget, on the modernization of railway and road approaches to border crossing points across the State border of the Russian Federation.

In addition to this cabinet and the commissions of the State Council of the Russian Federation on «International cooperation and export», «Efficient transport system» is responsible for creating conditions for construction at the expense of extrabudgetary funds of the key transport networklogistics centres, taking into account the export of goods through transport and logistics corridors, including international. Report on this issue to be submitted by 25 December 2024.

The Head of State ordered to develop a schedule for phased transition by 1 January 2026 to provide services and support measures on the basis of the one-window principle in digital format, taking into account the readiness of the digital infrastructure for export support and budget security regions of the Russian Federation. 

According to the president of the national research center «Transport and infrastructure» Pavel Ivankin, these tasks are part of the ongoing work on the creation of the National Digital Transport and Logistics Platform (TTPL). Many sub-projects are already being implemented, including the creation of a single window and a single transport document. Currently being tested as part of the experiment conducted by the government. «Therefore, there are no pitfalls or surprises for market participants. Everyone already performs it», - noted Pavel Ivankin. 

Dmitry Baranov believes that the proposed measures will accelerate digitalization of the domestic economy, as well as facilitate interaction between business and government bodies, reduce unnecessary bureaucratic procedures. He believes that supporting the export of domestic products will increase its competitiveness in international markets, attract additional attention to it. And investment in infrastructure will increase capacity, which will increase the speed of transport and storage of various goods. As a result, orders for Russian goods and services will grow, which will lead to the increase of profits of many domestic companies and accelerate the growth of the economy in general. 

In October, Vladimir Putin signed another important document for the development of the country’s export potential - the law on state support of Russian infrastructure projects abroad. This document modifies the Federal Law «On Industrial Policy» of 26.10.2024 357-F and allows to build any industrial facilities abroad. According to the document, as projects of complex construction on the territory of foreign states can be used warehouses, zones, transport and logistics centers (transit and storage of products without the need to pass customs procedures); Industrial clusters (establishment of industrial production abroad); port infrastructure (construction of seaports and transport terminals)».

The updated law also allows state support to investors in the implementation of complex investment and construction projects of Russian organizations abroad under EPC contracts (Engineering, Procurement and Construction). In this case, the contractor undertakes to design, build and commission the facility. If the project is implemented using the required minimum share of Russian industrial production, it can receive state support. The grant will be decided by the Ministry of Industry. 

The federal budget for the next three years includes almost 3 billion rubles. for the construction of foreign infrastructure, including the construction of transport and logistics centers and industrial zones: in 2025 about 837.1 million rubles. , in 2026 and 2027 - 1 billion rubles.

According to the expert of the Caspian Institute for Strategic Studies Alexander Karavayev, «it is not a momentary conjuncture moment», but the execution of long-standing plans that should have been implemented about 10 years ago. «We are somehow behind in some sense», he said. According to him, infrastructure needs to be created in promising maritime directions. This is the continuation of the development of the MTK North-South, which should ensure exit into Iranian ports including. This is also the land access of MTK to Turkish ports through the South Caucasus-Railway - on the line from Baku to Tbilisi to Kars. 

According to Alexander Karavayev, new stages of expansion of export infrastructure are coming. The Russian industrial zone of the Suez Canal is being considered. A pilot project is already underway in Egypt, to which the EAEU countries are planned to be included. It is also important to build terminals in Iran, including for transit through the Iranian ports of the Caspian Sea. «It is necessary to increase the storage, loading infrastructure and, most likely, some form of joint ventures», - noted Alexander Karavayev. The expert explained that the law prescribes any possibilities, it is flexible enough to build joint infrastructure facilities. «There may be joint ventures of Russia, Iran, Azerbaijan, Kazakhstan, Turkmenistan and all the Caspian stakeholders», - said the expert. In his opinion, the law can also accelerate construction of transport and logistics facilities that could represent Russian exporters of raw materials and companies interested in expanding their presence in India, Africa.