Political Problem: Chinese Firms Capture Russia's Logistics Market

Chinese companies have begun to capture the logistics industry in Russia, particularly in the Rostov region. This was stated by Natalia Besedina, founder of the Rostov logistics company «VTA Line,» at the platform of the regional Chamber of Commerce and Industry.

According to her, the problem is no longer economic, but political.

«There is a capture of the logistics field. Chinese companies are not only organizing deliveries from China but are also already handling transportation within Russia, since foreign companies are allowed to conduct cabotage,» explains Besedina.

She believes that the situation has arisen due to a lack of regulation from the Russian government. Foreign companies should not have the same opportunities to work on the domestic Russian market as domestic ones, says Besedina.

«We need to approach the government with measures to limit the Chinese capture of the logistics industry,» she stated.

First Deputy Governor Alexei Gospodarev responded to Besedina, saying he «heard this topic for the first time.» According to him, a large study of the logistics market in the Rostov region as the center of the new macro-region Priazovye is being prepared. Among other things, the authorities want to understand the cargo flows passing through the region and identify all key market players.

«Are they really capturing? On a country-wide scale or only in the Rostov region?» he clarified with Besedina.

«They are on a country-wide scale, including the Rostov region. Today, the main flow of cargo from China is handled by Chinese companies,» she replied.

As wrote 161.RU, the holding company «Damate» (GK Damate), which produces duck and turkey meat in the Rostov region, also complains about unfair competition from China.