RUSSIAN DRUG IMPORTS RISING

Russian drug imports continue to dominate exports and were worth US$1.7bn in H105. This figure excludes the estimated US$15.4mn of antibiotics imported into the country in the first six months of the year. Russian drug imports have been growing rapidly in recent years owing to rising drug consumption in the country, a demand that cannot be met by the largely basic local pharmaceutical manufacturing industry. The import market in Russia is predicted to continue expanding at an average of 30% a year through to 2009. The implementation of a 10% VAT on imported pharmaceuticals, in 2002, had temporarily halted growth in the market although since then it has returned to strength. Meanwhile, the export market, which is less than 10% the size of imports, continues to steadily grow as companies upgrade manufacturing to meet international standards, facilitating trade with the EU and other developed markets.

The Russian government has recently passed a new ordinance concerning the import and export of pharmaceuticals registered in Russia. The new guideline lists the companies permitted to conduct foreign trade in the drug sector and establishes a regulated procedure for obtaining the relevant trading licenses.