WorldCity, Annual Report: No.13 Russia- Imports, exports, up double digits | Connecting Local Business Leaders To The Global Economy

Annual Report: No.13 Russia- Imports, exports, up double digits

July 6th, 2006

Although oil imports are the trade driver with Russia, business leaders see export opportunities, too.

Oil imports fueled double-digit growth in trade between Russia and Houston in 2005 and helped push the energy-producing nation to the No.13 spot on Houston’s Top Trade Partner list, up from 18 a year earlier.

Crude and refined oil accounted for more than half of Russia’s cargo into the Houston Customs District. Imports of refined oil dominated, valuing $1.2 billion in 2005, a gain of 61 percent over 2004. Crude oil imports hit $503 million, a 2 percent increase in dollar value.

Houston remained one of the top Customs districts for goods coming from and going to Russia in 2005, but fell to third place – from second – behind the New Orleans Customs District, which moved up a notch. The New Orleans district encompasses the Louisiana Offshore Oil Port in Port Fourchon, Louisiana.

Houston’s exports to Russia grew 11 percent, led by a 21 percent jump in exports of machinery parts, a 460 percent hike in special purpose motor vehicles and a 24 percent gain in moving and grading machinery and pile drivers. In addition, more than $20 million in electric generating sets and rotary converters went to Russia. None were shipped in 2004.

Because of uncertain political conditions, Russia can be a tricky market. Marathon Oil recently decided to sell its exploration and production assets in Siberia. But Halliburton recently nabbed an oil exploration and production services contract. And KEM-TRON Technologies long has sold chemicals and equipment to Russia’s energy sector.