In recent years, trade with Russia has become a hot topic within the industry. However, facing Russias unique market environment and payment methods, many foreign trade practitioners feel confused. Below, we will discuss in detail the current situation of Russian payments and operational suggestions to help you better understand this market.foreign tradeFunctions and Application of VTB Accounts

Comprehensive Consideration of Fees and Services

For enterprises new to this market, they can consider transitioning through an agency company with a VTB account. However, this choice also requires a cost - benefit analysis:

If it is a trading service company, investing six - digit public relations fees may be worthwhile, because the existence of the account directly determines the business expansion ability.

• If it is only a self - operated foreign trade company, it needs to carefully evaluate whether this cost is cost - effective.
• In short, whether or not to have a VTB account determines whether an enterprise can gain more initiative in trade with Russia.

When Russian customers pay the payment for goods through a VTB account, they need to pay an additional bank expediting fee. This fee is usually 2 - 4% of the transaction amount, and the specific proportion depends on the negotiation ability of Russian customers with the bank. If the expediting fee is not paid, the domestic arrival time will be significantly extended, and there may be several weeks of uncertainty. After paying the expediting fee, the funds can usually be settled within 2 - 3 days.

Characteristics of VTB payments

Therefore, for enterprises in East China, receiving payments through the VTB channel is relatively stable and reliable. In North China, they are more inclined to use channels at border ports such as Hunchun, which is closely related to geographical location and trade structure characteristics.

Receiving payments through the VTB channel is not cheap. Russian customers need to pay the expediting fee and the agency export service fee on top of the ruble - to - RMB foreign exchange purchase. After all the fees are added up, the overall cost is not low.

Challenges and Opportunities for the Reputation of Domestic Products

Collecting payments through the VTB channel is not cheap. Russian customers need to pay an expediting fee and an agency export service fee on top of the RMB purchase with rubles. After all the fees are added together, the overall cost is not low.

However, from the perspective of Russian customers, they are more inclined to choose stable suppliers who can provide full - industry - chain procurement. Such suppliers not only need to ensure product quality but also demonstrate sufficient flexibility and efficiency in payment methods and logistics. In contrast, although Chinese suppliers products have outstanding cost - performance ratios, they still struggle to compete with European and American products in terms of brand recognition.

For enterprises that want to cooperate stably with Russian customers, having a VTB (Vneshtorgbank) account is almost essential. First of all, the account - opening process of a VTB account is very complex and time - consuming. Under normal circumstances, it may take 3 - 6 months from submitting the application to obtaining the account information.

A classic case can illustrate the problem: Many years ago, we helped a SOHO export chemical raw materials to Russia. At first, this SOHO lost the customer because they couldnt compete with American suppliers on price. Later, due to sanctions on Russia, this Russian customer actively approached us, hoping that we could help purchase the specified products from American suppliers.

At that time, I suggested that this SOHO continue to look for similar products in China. However, the Russian customer clearly refused. They said that they had been using this product for more than 10 years without any problems. Although its not that Chinese products are bad, American products are obviously more recognized in the Russian market.

This case fully demonstrates that for domestic products to gain a firm foothold in the Russian market, they need time to build a good reputation. At present, there are still many rotten apples in the domestic market, which affect the overall image and further drag down the international reputation of domestic products.

Summary

Trade with Russia is not achieved overnight. Receiving payments through VTB accounts is a relatively stable method at present, but enterprises need to comprehensively evaluate the balance between costs and efficiency. At the same time, when cooperating with Russian customers, in addition to paying attention to payment methods, they also need to attach importance to product quality and brand building.

In the future, with changes in the market environment and the improvement of domestic product quality, Made - in - China products are expected to win more recognition in the Russian market. May every foreign - trade professional find their own position in this complex and opportunity - filled market!