http://www.economy.gov.ru/wps/wcm/connect/economylib4/mer/press/news/doc20131205_20
Trade and economic cooperation between Russia and Argentina
1. Trade
According to data of customs statistics the foreign trade turnover of Russia with
Argentina in 2012 was 1571.1 million U.S. dollars; it reduces by 16.1% in comparison
with 2011; export was 307.0 million U.S. dollars (reduction in 2.6 times); import was
1264.0 million U.S. dollars (growth by 18.5%). Red ink of foreign trade of Russia with
Argentina in 2012 was 957.0 million U.S. dollars.
In January-September of 2013 the volume of Russian-Argentinian goods turnover
decreased in comparison with the same period in 2012 by 6.5%; it was 1042.7 million
U.S. dollars. Furthermore, Russian export increased by 40.7%; it reached 254.5 million
U.S. dollars, and Russian import from Argentina reduced by 15.6% (to the level of 788.2
million U.S. dollars). Red ink of Russia in trade with Argentina in January-September of
2013 was 533.7 million U.S. dollars.
(million U.S. dollars)
2006
2007
2008
2009
2010
2011
2012 г.
January
Septem
ber of
2012
January
Septem
ber of
2013
Turnover
1 111.4
1 384.2
1 976.7
1 349.1
1 123.1
1 872.6
1 571.1
1115.2
1042.7
growth in %
160.5
124.6
142.8
68.2
83.3
166.7
83.9
Export
152.9
259.2
740.2
203.2
209.6
806.0
307.0
growth in %
213.2
169.6
285.5
27.4
103.2
384.5
38.1
Import
958.5
1 125.0
1 236.5
1 145.9
913.5
1 066.5
1 264.0
growth in %
154.4
117.4
109.9
92.7
79.7
116.8
118.5
Balance in
hand
-805.6
-865.8
-496.3
-942.7
-703.9
-260.5
-957.0
-753.4
-533.7
93.5
180.9
254.5
140.7
934.3
788.2
84.4
Place of Argentina in foreign trade of Russia
In turnover
46
48
44
46
56
50
58
59
62
In export
77
73
58
73
73
60
74
77
75
In import
28
31
32
28
39
41
38
38
44
Source: Federal Customs Service
On the results of January-September of 2013 the structure of Russian export in
Argentina was dominated by mineral products (61.5%), production of chemical industry
(substantially mineral fertilizers) (25.2%), machinery, equipment and vehicles (10% of
total volume of export). Specific weight of metals and products thereof was 2.4%.
The main export goods (95% of total volume of supplies) are: petroleum products
(diesel fuel that does not contain biodiesel; lubricating oils, liquid fuels that do not contain
biodiesel), mineral fertilizers (complex, nitrogenous, potassic), hydraulic turbines,
elevators of liquids, ferroalloys.
2
The commodity group «provisions and agriculture raw materials» in the structure
of import has 85.5% of total volume of procurements. The specific weight of production
of chemical industry was 8.4%; machinery, equipment and vehicles – 4.7%; metals and
products thereof – 1.1%.
The main import goods (90% of total volume of import) are: fruits (pears, apples,
grape, citrus plants, dried prune), cakes, meat (cattle, horseflesh) and food by-products,
medicinal agents and fractions of blood, dairy butter, cheeses, condensed milk, ground
nut, tobacco raw materials, trucks and their parts, wines, pipe casings.
According to data of Argentinian customs statistics the total foreign trade
turnover of Argentina in 2012 was 149.7 billion U.S. dollars; export was 81.2 billion
U.S. dollars; import was 68.5 billion U.S. dollars. Black ink of goods turnover was 12.7
billion U.S. dollars.
The structure of Argentinian total export was dominated by supplies of
provisions and agricultural raw materials (53.9% of total volume of export); industrial
production (31.4%); mineral raw materials and fuel-energy goods (9.7%).
The main export partners are: Brazil – 20.7% of total volume of Argentinian
export, countries of European Community – 16.9%, China – 7.4%, Chile – 5.8%, the
United States of America (5.1%). Other countries have more than 44.1%.
The structure of Argentinian total import was dominated by industrial
production – 79.4%; mineral raw materials and fuel-energy goods – 15.6%; provisions and
agricultural raw materials – 3.5%.
The main suppliers of goods to Argentina are: Brazil – its specific weight is
28.4%; countries of European Community – 16.1%, China – 15.1%, the United States of
America – 10.7%, Mexico – 3.4%. Other countries have more than approximately 26.3%
of total volume of import of this country.
2. Conditions of access to goods markets
Most favored nation treatment in mutual trade is available from 1993 on the basis of
the intergovernmental Agreement on trade and economic cooperation, and since 2012 - in
accordance with the norms of the World Trade Organization.
The mechanism of complete control over the implementation of the import supplies
has been introduced in Argentina since February 1, 2012. In accordance with the
resolution of the Federal Office of State Revenue (AFIP) № 3252 from January 5 of 2012
any import of goods into the territory of Argentina can be implemented only after
appealing the importer to the AFIP and getting the necessary authorization.
Since April 1, 2012 in accordance with the resolution of the AFIP № 3276 from
February 9 of 2012 Argentinian importers of services in an amount not less than 100
thousand U.S. dollars should file a preliminary declaration of import of services that will
be considered in the AFIP and the Secretariat on Internal Trade of Argentina. The Central
Bank of Argentina should also be informed about the operation.
Argentina recognized the market status of Russian economy in May of 2011. Last
antidumping measure against Russian goods was canceled in June of 2011.
On January 24, 2013 the Government of Argentina terminated the action of nonautomatic licensing extending to an extensive list of goods including goods of Russian
exports to Argentina. However, on the same day Argentina increased entrance customs
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duties in respect of 100 products. It was implemented on the basis of the corresponding
decision of MERCOSUR customs union adopted in 2011. Increasing entrance customs
duties had the influence on one good of Russian export to Argentina only: «Wires
insulated...others» (code of Commodity Nomenclature of Foreign Economic Activities of
the Customs Union 544449). Supplies of the product had been carried out in 2010-2011,
and they were minor.
In accordance with the decision of MERCOSUR adopted in June of 2012 Argentina
received the right to increase entrance customs duties relative to 200 products. Therefore,
Argentina may increase entrance customs duties relative to 100 products more.
In respect of goods originating from Argentina as a user of common system of tariff
preferences of the Customs Union and imported into the common customs territory of the
Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, included in
the list of preferential goods, the rates of entrance customs duties in the amount of 75% of
the rates of entrance customs duties of Common Customs Tariff are applied.
3. Investment cooperation
Dynamics of investments from Argentina to Russia (thousand U.S. dollars):
Name
Investments accumulated at the beginning of
the reporting period
Investments and investment incomes received
Investments withdrawn (paid off)
Investments accumulated at the end of the
reporting period
2009
2010
2011
2012
JanuarySeptember
of 2013
4 277.53
2 958.33 10 918.53 10281.12
16674.2
52.70
1 371.49
8 025.50
65.30
7670.4
2311.7
22032.9
2 996.50
3 650.00
8327.2
1918.0
2 958.74 10 918.53 10 265.03 16690.32
Dynamics of investments from Russia to Argentina (thousand U.S. dollars):
Name
Investments accumulated at the beginning of
the reporting period
Investments and investment incomes received
Investments withdrawn (paid off)
Investments accumulated at the end of the
reporting period
2010
2011
3 057.10
2 870.80
9 178.20
9032.27
9475.1
6 659.90 13 010.20
352.50 13 245.30
2915.53
2428.23
2675.7
2111.8
9 178.20
9523.07
10305.1
31.60
217.90
2 870.80
8 943.10
2012
JanuarySeptember
of 2013
2009
Structure of investments received in January-September of 2013 (thousand U.S. dollars):
Name of types of economic activity relative to the
Investments from
Investments from
sections of All-Russian Classifier of Types of Economic Argentina to Russia Russia to Argentina
Activity
Investments - total
7670.4
2675.7
Direct investments - total
Portfolio investments – total
Other investments - total
7670.4
2675.7
4
Structure of investments accumulated in January-September of 2013 (thousand U.S. dollars):
Name of types of economic activity relative to the
Investments from
Investments from
sections of All-Russian Classifier of Types of Economic Argentina to Russia Russia to Argentina
Activity
Investments - total
22032.9
10305.1
Direct investments - total
Portfolio investments – total
Other investments - total
22032.9
10305.1
source: Rosstat
On May 23, 2011 during an official visit of the Minister of Foreign Affairs,
International Trade and Worship of Argentina E. Timerman to Moscow, the
Memorandum of understanding in the field of investment cooperation between the
Ministry of Economic Development of the Russian Federation and the Ministry of
Foreign Affairs, International Trade and Worship of Argentina was signed.
4. Institutional forms of cooperation
Institutional body of the Russia-Argentina trade and economic cooperation is the
Intergovernmental Russia-Argentina Commission on Trade, Economic and Scientific and
Technical Cooperation (IPC), which activity is regulated by the Agreement on the
establishment of this commission from May 25, 1993.
Chairman of the Russian part of the IPC is the Head of Rosselkhoznadzor S.A.
Dankvert, chairman of the Argentine part of the IPC has not assigned by this moment
(previously - State Secretary for International Economic Relations of the Ministry of
Foreign Affairs and Worship of Argentina Augusto Costa).
In the framework of the IPC 3 working groups on trade and economic cooperation,
on scientific and technical cooperation, on cooperation in the field of agriculture are
acting.
10th IPC session was held in Buenos Aires on November 29-30 in 2012.
The response of the Argentinian side to the proposal to hold the 11th session of the
IPC in February-March of 2014 in Moscow is being executed.
At the level of business circles the interaction is implemented through the RussiaArgentina Council of Entrepreneurs (the chairman is Advisor of the President and
Chairman of the Board of VTB Bank OJSC, the president of Latin American Business
Club ANO D.A. Titov) and the Argentina-Russia Council of Entrepreneurs (the president
of the Inter-American Council on Trade and Production, co-chair of the MERCOSUR EU business forum Antonio Estrany y Gendre).
5. The main projects of bilateral cooperation:
The following projects are being implemented:
 Power Machines OJSC - the modernization of Piedra del Aguila hydroelectric
power plant (1400 MW)
Reference information:
In October of 2012 the supply and installation of equipment for the modernization of
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the third power generating unit for Piedra del Aguila hydroelectric power plant (a set of
segments for a thrust bearing of a hydraulic turbine generator with Teflon coating) were
implemented. In February of 2012 the contract for supplying fluoroplastic segments for the
fourth unit of the hydroelectric power plant was signed. Negotiations relative to conducting
the inspection of all units of the hydroelectric power plant are implemented in order to
increase their powers.
 Power Machines OJSC - the construction of Punta Negra hydroelectric power plant
(63 MW)
Reference information:
In May of 2011 Power Machines OJSC concluded the contract with the general
contractor of the construction of Punta Negra hydroelectric power plant UTE Techint
Panedile for the supply of 2 hydroturbines with the capacity of 32 MW each, 2 generators in
package with an excitation system. Shipment of an inset part of turbines and other equipment
is planned to implement by the end of 2013.
Negotiations on the following projects are being implemented:
 Power Machines OJSC (the construction and modernization of Los Blancos-1
hydroelectric power plant and Los Blancos-2 hydroelectric power plant with the
capacity of 480 MW, Salto Grande hydroelectric power plant with the capacity of
1940 MW
Reference information:
Work to promote the participation of Power Machines OJSC in the following projects
is being conducted:
- the modernization of the Argentine-Uruguay Salto Grande hydroelectric power plant.
In March of 2011 Power Machines OJSC filed the proposal for the installation of 6
submerged hydroelectric units on the hydroelectric power plant in bottom discharges of the
hydroelectric power plant. Decision of the customer, which is binational company STM,
relative to awarding and starting the construction has not been accepted by this moment;
- the construction of Los Blancos-1 (2х324 MW) and Los Blancos-2 (3х162 MW)
hydroelectric power plants. Power Machines OJSC participated as the subcontractor of the
consortium headed by the IEKSA company during the tender on the construction of the
hydroelectric power plant that presented a more attractive offer. In October of 2012 the
contract was awarded to the Argentine-Brazilian consortium headed by the Kartellone.
However, this consortium has not yet presented documents proving the funding of the project
from the side of the National Bank of social-economic development of Brazil.
Projects developing together with companies on the basis of approved
certificates of projects:
Currently, 7 certificates of projects are being implemented relative to Argentina, 1
certificate is in the phase of the approval (the construction of Chiuido-1 hydroelectric
power plant - INTER RAO–Export LLC).
2 projects were completed: supply of equipment of Group of companies Renova
(Hevel LLC) for the production of solar energy, construction of President Nestor Kirchner
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hydroelectric power plant and Governor Jorge Sepernik hydroelectric power plant on the
Santa Cruz river with the capacity of 1740 MW (INTER RAO–Export LLC).
 Construction of generation objects turnkey in Argentina (INTER RAO–Export
LLC)
Reference information:
In March of 2013 meetings of trade representative of Russia in Argentina with the Vice
President of Argentinian company ENARSA H. Nordio and the governor of the province of
Neuquen J. Sapag were held, in the course of which the interest of Argentinian side in
cooperation with INTER RAO–Export LLC and in possibility of transferring the
implementation of the project for the construction of Chuido 1 hydroelectric power plant was
revealed. The possibility of changing the composition of the consortium in the interests of the
Russian company, cancelling previous trades and starting new trades is being considered. In
the period from April 9-11of 2013 there was the visit of INTER RAO–Export LLC to
Argentina, during which negotiations with the governor of the province of Neuquen and CEO
of Emidro company on the issues of joint implementation of projects for the construction of
Chuido-1 hydroelectric power plant and Chuido-2 hydroelectric power plant were held. On
the results of the visit the arrangement on conducting negotiations by Emidro company with
participants of the consortium won the tender previously on the issue of the inclusion of the
Russian company INTER RAO–Export LLC and Argentinian company Helport S.A. taking
into account the conditions of the Russian company was reached.
On September 6, 2013 during a meeting with trade representative of the Russian
Federation in Argentina S.V. Derkach the Minister of Federal Planning, Public Investment
and Services of Argentina J.M. De Vido suggested INTER RAO–Export LLC to participate in
the project of construction of Chuido-1 hydroelectric power plant (637 MW).
On September 11, 2013 the meeting of the Deputy Minister of Economic Development
of the Russian Federation A. E. Lihachev and the President of the Argentinian holding
America Corporation E. Eurnekyan was held in the Ministry of Economic Development of the
Russian Federation. E. Eurnekyan arrived in Moscow for conducting talks with Director
General of INTER RAO–Export LLC M. E. Sergeev relative to the issue of joint participation
in the construction of Chuido-1 hydroelectric power plant. The parties agreed to work
together with the federal government of Argentina on the participation of the Russian and
Argentinian companies without tendering in this project. On September 20, 2013 the letter to
support the participation of Russian companies in the specified project was sent in the
address of the Minister of Federal Planning, Public Investment and Services of Argentina
J.M. De Vido on behalf of the Minister of Economic Development of the Russian Federation
A.V. Ulyukaev.
On October 2-4 of 2013 the talks of Deputy Director General of INTER RAO–Export
LLC S.Y. Rodionov and the Minister of Federal Planning, Public Investment and Services of
Argentina J.M. De Vido, representatives of America Corporation and the governor of the
province of Neuquen J. Sapag on the issue of accession of the Russian and Argentinian
companies to the consortium won the tender relative to Chuido-1 hydroelectric power plant
previously and on conditions of financing the project were held. The parties agreed to solve
the issues on financing the project by the end of the current year in order to start works under
the project in the beginning of 2014.
On November 8, 2013 during a visit of Deputy Minister of Federal Planning, Public
Investment and Services of Argentina H. Lopez to Moscow a meeting with the participation of
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INTER RAO–Export LLC was held in the Ministry of Energy of the Russian Federation,
during which the sides reaffirmed the interest of participation of the Russian company in the
construction of Chuido-1 hydroelectric power plant. The talks with Vnesheconombank on
financing the project were also held.
 Provision of winning the tender on the construction of the third power generating
unit of Atucha nuclear power plant (Rosatom SC)
Reference information:
On May 24, 2011 Memorandum on cooperation in the peaceful uses of nuclear energy
between Rosatom SC and the Ministry of Federal Planning, Public Investment and Services of
Argentina was signed. The Memorandum noted that Argentina will continue to explore the
complex offer of Rosatom SC relative to future nuclear power objects in the country and their
technical parameters. The document also stipulates that Rosatom SC was pre-qualified as a
possible supplier of the fourth Argentinian nuclear power plant. Currently, Rosatom SC is
awaiting the start of the tender for the construction of new nuclear power plant.
During a business seminar on the «margins» of the 10th session of the RussiaArgentine IPC (November 29-30 of 2012, Buenos Aires) there was the presentation of
Rosatom SC. Argentinian organizations NA-SA and CNEA expressed the interest in
developing the cooperation with Rosatom SC in the sphere of development of new materials,
nuclear fuel cycle and elements of nuclear reactors. In April of 2013 there was the visit of
Deputy Director General - Director of Innovation Management Unit of Rosatom SC V.A.
Pershukov to Argentina in order to hold consultations on the development of bilateral
cooperation in the field of nuclear energy, including production and use of radioisotopes in
medicine, industry and agriculture.
In September of 2013 Rosatom SC transferred the intergovernmental framework draft
agreement on cooperation in the sphere of the peaceful uses of atomic energy (instead of the
old from October of 1990, the validity of which ended in December of 2012) to the National
Atomic Energy Commission of Argentina.
 Creating the conditions for sales and service of Russian helicopters of civilian use in
the market of Argentina (Russian Helicopters JSC)
Reference information:
Supply of civil rotorcrafts on the local market with the subsequent support manning.
Dates of implementing the project: 2013-2017.
 Creating a system of the integrated control of the meteorological situation in
Argentina (Almaz-Antey Concern JSC)
Reference information:
Supply and grouping of weather radars DMRL-S in the amount of 22 pc., integration
with air traffic control system and transmission of information to command-control towers of
aerodromes and alert serice of the Ministry of Agriculture of Argentina. Creation of joint
venture.
Dates of implementing the project: 2013-2015
 Building supplies of Trolza trolleybuses to Argentina (Trolza-Market LLC)
8
Reference information:
Supplies of trolleybuses, hybrid buses based on supercapacitors and gas-turbine
installation of Russian production to Argentina.
Dates of implementing the project: 2013 – 2014
 Participation in tenders for the supply of freight rolling stock and road-construction
machinery to the market of Argentina (Uralvagonzavod SPC JSC)
Reference information:
Participation in tenders for the supply of freight rolling stock and road-construction
machinery to the market of Argentina. Creation of a joint venture to produce them.
Dates of implementing the project: 2013 – 2015
 Promotion of multifunctional integrated system of GLONASS/GPS monitoring
«AutoTracker» in Argentina (Russian Navigation Technologies OJSC)
Reference information:
The company took part in the Russian business mission to Argentina on November 2930, 2012. Business contacts with Argentinian companies DELTA SEGURIDAD and Orion
System were established, information exchange is being conducted. Currently, the process of
homologation of test product samples has been started with DELTA SEGURIDAD company.
In March of 2013 on the results of talks of Russian Trade Representation in Argentina
with the administration of the Argentinian company Logitech (production, sale and service of
electronic devices) an invitation of RNT JSC for holding talks on cooperation was received.
In the period from April 10-12 of 2013 there was the visit of a representative of RNT JSC to
Argentina, during which presentation of a product of the Russian company, as well as talks
with Argentinian companies of navigation sector (Skaypatrol, Megatrans, Pampa Energia,
American Tracer, Sky Cop and Logitech) were held. The arrangement on joint activity
relative to development of optimal marketing strategy and cooperation program was reached
with the Argentinian company Logitech.