RUSSIAN TRADE REPRESENTATION IN PERU—A FOCUS ON ECONOMY

Pavel Dorokhin,
Trade Representative of the Russian Federation in the Republic of Peru

REPUBLIC OF PERU

Russian-Peruvian Trade Turnover
Russian-Peruvian trade relations are marked by a rather high level of interaction. Peru shows significant interest in the Russian chemical industry, particularly fertilizers, fertilizer concentrates, and ammonium nitrate for use in mining. Today, Russian fertilizers cover more than 40 % of the Peruvian market’s needs, while ammonium nitrate supplies account for nearly 70 %. So, about 70–80 % of Russian exports to Peru consist of chemical products, primarily fertilizers, while the remaining 20–30 % include food and agricultural raw materials, timber, pulp and paper products, and equipment. Russia imports Peruvian tropical fruits and vegetables, sea-food, coffee, colored lacquers, and equipment.

The Trade Representation comprehensively supports the growth of Russian automotive and railway equipment exports and assists Russian companies in implementing transport projects. Over the past few years, Russian companies have been increasingly proactive in supplying mining equipment to Peru. Peru is also keen on exploring Russian digital solutions in cybersecurity. This year, efforts are planned to coordinate the application of digital products from several Russian companies within the “smart city” programme, focusing on public transportation. Also, work is underway to increase the volume of Russian medical equipment and pharmaceutical supplies to Peru.

EAEU-Peru Relations
Special attention is given to forging interaction between the Eurasian Economic Commission (EEC) and Lat-in American integration groupings, of which the Republic of Peru is a member, particularly the Andean Community and the Pacific Alliance. In 2021, the EEC and the General Secretariat of the Andean Community signed a Program of Cooperation in the Field of Fair Competition, envisioning the establishment of a permanent working group on cooperation in competition policy and law enforcement, the exchange of experiences in competition regulation, investigations of competition violations, and studying commodity markets. The parties advocate for dialogue and support the idea of exchanging business missions, holding joint events with Latin American integration groupings to share integration practices and discuss joint solutions to global economic challenges.

Customs Payments and Special Economic Zones
A major economic driver appealing to Russian foreign trade operators is Peru’s commitment to trade liberalization with all its trading partners and its focus on attracting foreign investment. Within this economic policy Peru has signed 19 bilateral and multilateral free trade agreements involving 53 countries, which provide for the gradual mutual reduction or elimination of customs duties.

The share of private business in Peru is very high—about 85 %. While there is no free trade agreement between Peru and the EAEU, the country is using the Eurasian Eco-nomic Union’s unified system of tariff preferences. Consequently, lower import customs duties from the Unified Customs Tariff (a 25 % discount) are applied to certain categories of Peruvian goods. Ad valorem customs duties in Peru are low, and many goods are exempt from duties.

The country operates four special economic zones: Zofra- Tacna, ZED Paita, ZED Ilo, and ZED Matarani. Residents of these zones benefit from preferential tax and customs regimes.

Logistics
Peru is actively developing its logistic infrastructure, contributing to increased traffic volumes. The primary means of delivering goods to the country are maritime, air, and land transport. Until recently, the Port of Callao was Peru’s main seaport, handling about 80 % of all maritime cargo. Last year, it handled around 1.64 million TEU containers, an 11 % increase compared to 2023. The main trading partners are China, the USA, Chile, Brazil, and Colombia. In November 2024, Chancay commissioned a new seaport, a vital element of Chinese-Peruvian strategic cooperation, as Peru asserts that Chancay showcases the latest advancements in port technology and coastal infrastructure.

The main air gateway of the country is Jorge Chávez International Air-port. In 2024, it handled over 82,000 tons of cargo. Currently, the country is finalizing the commissioning of the International Airport of Lima, with an expected opening date of March 2025. This is anticipated to significantly increase passenger traffic and cargo volumes. Overland routes facilitate trade with neighbouring countries, primarily Chile, Colombia, and Ecuador. In 2024, trade volume with the abovementioned states was about USD 10.3 billion.

REPUBLIC OF COLOMBIA

Economy
According to the National Administrative Department of Statistics (DANE), Colombia’s GDP grew by 1.6 % in 2024 compared to 2023, reaching USD 291.26 billion. The highest growth rates were recorded in the entertainment and leisure industry, sports, agriculture, finance and banking, construction, information technology, and telecommunications. Negative dynamics were observed in coal (-4.1 %) and iron ore mining (-3.9 %), as well as in industry (-2.6 %). The inflation rate in Colombia for January-October 2024 was 6.1 % (compared to 9.3 % in 2023), with an inclination to further fluctuations.

To curb inflation, the Bank of Colombia has raised its key interest rate several times, from 1.75 % in September 2021 to the current 9.5 % (as decided by the Board on December 23, 2024). The key sectors of the Colombian economy are the energy industry (including renewables), agriculture and fisheries, food and light industry, transportation, construction, tourism, and information technology. The country actively engages Russian technologies in the construction of HPPs and has valid contracts for the supply of components to the energy sector.

National Programmes and Development Strategies
The current administration of Colombia is developing national programmes focused on alternative energy, transportation and social infrastructure, as well as using information technologies in transportation, housing and utilities. The strategy for developing Colombia’s transport system includes the construction of road infrastructure (highways, bridges, tunnels, viaducts), railways, and metro systems, as well as the implementation of modern automated management systems. Moreover, the government plans to develop river cargo transportation along internal waterways.

The country is also shaping a strategy for developing agricultural territories. Key tasks include the construction and maintenance of rural roads, equipping farmers with mod-ern machinery and technologies for production (irrigation systems, digital crop control systems, soil analysis, etc.), and establishing domestic production of mineral fertilizers and agrochemicals, including in cooperation with foreign partners and suppliers.

Foreign Trade Relations with Russia
The activities of Russian foreign trade participants are aligned with Colombia’s priorities, national projects, and changes in the country’s investment climate. Given Colombia’s policy of accelerated energy transition to renewables and abandoning new fossil fuel exploration, Russian companies are actively engaged in energy engineering.

Deliveries of Russian fertilizers for the needs of Colombian agriculture are of no less importance for bilateral trade and economic relations. As for oil and gas engineering, Colombian oilmen are actively cooperating with Russian oil and gas equipment manufacturers. Russian submersible pumps, electric motors, and other well equipment are in high demand. In 2024, the domestic pharmaceutical industry had a surging interest in the Colombian pharmaceuticals market. Russian companies are actively engaging with Colombia’s National Food and Drug Surveillance Institute (INVIMA).

PLURINATIONAL STATE OF BOLIVIA

A key focus of the Russian Trade Representation in Peru is to expand foreign trade relations with Bolivia. The official data show that eco-nomic growth in Bolivia for 2024 amounted to 3.7 % (1.4 % by World Bank estimates). In the same year, the country experienced a surge in inflation to a 15-year high of 9.97 %. Bolivia’s balance of payments contracted in 2024—export volumes (USD 8,247 million) from January to November decreased by 20 % com-pared to the same period in the previous year, while imports (USD 8,840 million) fell by 16 %.

The primary ex-port items were natural gas and precious metals (USD 1,135 million), as well as zinc (USD 459 million). Brazil (USD 1,393 million), China (USD 1,207 million), and Japan (USD 661 million) remained Bolivia’s main export partners. The country imported automobiles, machinery, equipment, and petroleum products, with China (USD 1,970 million), Brazil (USD 1,285 million), and Argentina (USD 982 million) being the main importers.

Bolivia’s investment attractiveness remains low. In November 2024, JP Morgan assessed the country’s risk at 1,942 points, second only to Venezuela in the region. However, there is a steady trend towards improving the investment climate: in 2024, the balance of foreign direct investment was positive (compared to a deficit of USD 73 million in 2023).

President Luis Arce Catacora’s administration elaborated a plan on national economic development, which envisages a large-scale industrialisation programme with significant state investments. Key projects include the development of the Mayaya-1 field to revitalize the oil and gas sector, the expansion of steel production at the Mutún deposit (potentially replacing up to half of Bolivia’s steel imports), modernization of the energy sector, bio-diesel production, and the commercialization of lithium (with Russian and Chinese partners involved in building facilities).

Bolivia expresses interest in purchasing Russian energy engineering, automotive, oil and gas, and pharmaceutical products, but bilateral business cooperation is hindered by the lack of clear and transparent mechanisms for mutual settlements.

Enhancing Cooperation
The overall trend in developing foreign trade with Peru, Colombia, and Bolivia is positive and bears similarity not only in the general approaches to foreign economic activity, but also in the challenges on the socio-economic agenda of these countries. To enhance cooperation with these nations, it is deemed appropriate to:

• Strengthen the concept of Peru, Bolivia and Colombia as regional economic bridgeheads for localizing the production of Russian companies and further expanding into neighboring countries;
• Intensify regional cooperation formats, organise business missions of export-oriented enterprises from Russian regions to these countries for B2B seminars, fora, and presentations;
• Given the geographical distance from Russia, support the resumption and expansion of cargo and passenger air services by Russian companies, optimize cargo flows of maritime routes, and provide state support to Russian cargo carriers.

Drawing on its experience in the region and its vast expertise, the Russian Trade Representation in Peru invites Russian foreign trade operators to the countries within its jurisdiction and commits to providing comprehensive informational and legal support under the guide-lines of the Russian Ministry of Industry and Trade.