RUSSIA SEES SURGE IN DRUG IMPORTS

According to official statistics, Russia imported drugs valued at US$2.63bn in the first nine months of 2005 -- a year-on-year rise of 21.6%. Government sources claim that almost all of the imports originated in former Soviet bloc countries.

Nevertheless, leading foreign generics manufacturers -- principally those based in the eastern European Union (EU) states -- have warned of tougher times ahead as Russia moves to discourage surging imports by removing subsidies on foreign drugs. However, some hope that increased spending on the country's new state reimbursement system will offset much of the losses.