Despite Import Barriers, Multinationals Commit To Russian Market
BMI View : In the face of tension with its Western neighbours, the Russian state will act to reduce its external reliance within strategic sectors at a more rapid tempo. While local companies do not possess the scale and know-how to compete with multinationals, state support is providing a boost to local competitiveness. Joint ventures and partnership deals between multinationals and local companies will accelerate to head off further regressive measures.
The breakdown in relations between the West and Russia has lead to the imposing of limited sanctions on Russia, but despite the negative sentiment and potential for retaliatory measures from the Russians, the pharmaceutical industry is entrenching itself further into the Russian market. Local subsidiaries of multinational companies have expressed their commitment to operating in Russia despite the elevated geopolitical tension. However, Vladimir Putin is pushing for import stemming measures in all sectors. Over the next five years, we believe that import dominance in pharmaceuticals will be eroded, although we believe that imports will continue to dominate the market in value terms.
Pharmaceutical Companies Remain Committed To Russia