The decision was taken in September 2018 during the visit of a delegation from the Sverdlovsk Region to Harbin, where the main topic for discussion was the exports of food and agricultural products to China. Now, the Development Corporation of Sverdlovsk Region is officially studying the issue. The joint venture will help promote regional products and facilitate the prospective Chinese market entry by companies of the Sverdlovsk Region.
The visit to Harbin was paid in the follow-up of the agreements reached between Sverdlovsk Region Governor Evgeny Kuyvashev and Heilongjiang Province Governor Wang Wentao at the Innoprom-2018 exhibition.
The Sverdlovsk Region has been already exporting chocolates and caramels, butter, and many other products to China. For instance, the Sverdlovsk Region exported over 570 tonnes of chocolates to China in 2017.
However, the export potential is far from exhausted. The People's Republic of China has a vast demand for soil fertilizers, potato, the Sverdlovsk Region is rich in (the region produces 594.7 thousand tonnes per year), frozen vegetables, Ural beer, seeds, canola oil, various sweets.
The demand for peat fertilizers is driven by the national policy of China to improve the soil fertility and by the food safety policy. Today, the Ecoprom Ural company (the Torfyanaya Polyana brand) is developing exports to the markets of Asia and Middle East and is about to supply the first pilot batch of 1000 cubic meters of peat to China.
Ecoprom is sure that products of the Sverdlovsk Region will be more competitive (than those of suppliers from Canada and Finland) because it is the most Eastern field, which reduces the logistics costs for customers from Asia.
The peat project is one of those the Development Corporation of Sverdlovsk Region discussed in Harbin with the view of establishing a company to support exports.
The joint venture will take over the function of an export transaction aggregator. It will identify the needs of China for goods, establish business contacts, and help solving issues of certifying product and obtaining permits.
The Development Corporation of Sverdlovsk Region will represent the Sverdlovsk Region in the structure to be established. China will be represented by Heilongjiang Foreign Economy & Trade group Co., LTD founded by the Heilongjiang Province National Property Control and Management Committee.
“We can see prospects not only in the field of food and agriculture. During our visit to China, we negotiated medical tourism at the meeting with Harbin National Hospital No. 5, interested in the replacement arthroplasty cooperation with the Ural Clinical Treatment and Rehabilitation Center in Nizhny Tagil. Representatives of the Harbin Hospital will pay us a return visit soon, so we will be able to show them the capabilities of the hospital and discuss details,” said CEO of the Development Corporation of Sverdlovsk Region Sergey Kiselev.