On May 19, 2021, the Russian-Asian Union of Industrialists and Entrepreneurs and the Chinese Chamber of Commerce and Industry of Shandong Province, as well as the administration of the city of Donging held a bilateral presentation session on oil and gas equipment for representatives of Russian and Chinese business.
Due to the pandemic, the session was held online, that allowed even small business representatives to participate in B2B negotiations. During the meeting, Russian importers studied the technological innovations of partners from Shandong province and discussed supplies organization of Chinese equipment to Russia.
Shandong Province is a high-tech region. A number of enterprises are actively working in Russia, in particular, Haier. Chinese manufacturers of equipment for the oil and gas industry are interested in expanding their presence in the Russian market.
In 2020, Shandong province imported oil worth $ 7.09 billion from Russia, which is 74.7% of the province's total imports from Russia. Russian raw materials provide 21.7% of the total oil imports of Shandong province. In 2019, this figure was even higher - $ 9.21 billion. A 23% reduction in supplies was associated with the pandemic and with a decrease in oil prices; in general, Russian exports to Shandong decreased by 14.7% in 2020. Because of this, the total volume of imports from Russia to Shandong decreased by $ 440 million - this is the highest figure among all the foreign economic partners of the province.
President of the RAUIE Vitaly Mankevich: “We see great potential in the development of cooperation in the oilfield services sector and in the supply of equipment. We offer companies from Shandong province to open sales and representative offices in Russia, this will allow them to be closer to large customers and develop their business more efficiently. I would like to share the experience of one of the RAUIE members: SLC Oilfield Service Corporation. They started with trade, but saw that there was a supporting policy of local production in Russia, especially in the procurement of large companies, so they decided to localize production in the Kurgan region. With our support, they bought Brownfield and invested $ 50 million in the project. Now they are one of the major suppliers of such companies as Gazprom, Lukoil and Rosneft. We advise you to pay attention to this successful example, and the RAUIE is always ready to help organize the work of a sales office in Russia and implement investment projects. "
