Israel

Israel — a country in the Middle East on the south-eastern shore of the Mediterranean Sea

It shares land borders with Lebanon in the north, Syria in the northeast, Jordan on the east, Egypt to the south.

Official languages — hebrew, arabic

Capital — Jerusalem

Form of government — parliamentary republic

Head of state — president elected by the Knesset for a seven-year term by secret ballot. Supreme legislature — the Knesset — is the unicameral national legislature. Central executive branch — the government, headed by the Prime minister. The highest tier of a court system — the Supreme court of Israel (the High Court of Justice).

Currency — Israeli new shekel (ILS)

Population — 8,08 million people (97th in 2013)

GDP — $291,357 billion (37th in 2013 according to The World Bank)


Market Access

Tariff barriers: Israel tariff barriers

Non-tariff barriers: not declared (with regards to Russian products as of the 1st of July 2014)

Current external markets trade barriers schedule by The Ministry of Economic Development of the Russian Federation

Trade relations with Russia: according to the Federal Customs Service in 2013 the Russia-Israel trade turnover reached $3,578 billion (+23% in relation to 2012). Russian export amounted to $2,085 billion (+27% in relation to 2012); import reached $1,493 billion (+13% in relation to 2012).

In 2013 the Israel’s share of the Russian foreign trade volume was 0,2%.

Mutual trade dynamics is characterized by steadily growing import and variable export.

Source: The Federal Customs Service of Russia

Import structure from Israel to Russia

(according to the Federal Customs Service of Russia; thousand of USD)

Product codeProduct label20032004200520062007200820092010201120122013
TOTALAll products207 222208 799331 876408 152529 805734 448636 252773 4571 083 9631 285 5931 492 795
'07Edible vegetables and certain roots and tubers3 6386 41811 92028 94861 49079 10597 197139 500240 910234 385240 728
'85Electrical, electronic equipment66 28969 28291 15679 82156 85577 70642 35287 572106 964136 940146 221
'30Pharmaceutical products9 2157 51228 30140 03724 96284 96379 593102 403139 440244 898126 794
'90Optical, photo, technical, medical, etc. apparatus14 48414 23930 94133 09078 61188 36545 05856 44470 256106 272102 656
'08Edible fruit, nuts, peel of citrus fruit, melons4 3668 88015 29516 28131 43032 03941 87252 99875 52484 41297 998
'84Machinery, nuclear reactors, boilers, etc.41 39512 34333 74632 33470 02584 01249 17752 37091 32274 21584 790
'39Plastics and articles thereof14 60617 58029 43242 27749 06673 37040 73657 99264 49667 32759 510
'33Essential oils, perfumes, cosmetics, toiletries5 0895 4077 0267 15610 76313 58415 99920 86020 55829 72442 226
'20Vegetable, fruit, nut, etc. food preparations6 7619 01113 84922 38234 77439 57229 34341 26650 45750 70738 837
'82Tools, implements, cutlery, etc. of base metal1 3891 6072 1243 7988 50713 7579 78415 88521 97728 56532 505
06Live trees, plants, bulbs, roots, cut flowers etc.4 1699 50814 45938 81018 72016 48816 23618 59825 50726 75828 478
'56Wadding, felt, nonwovens, yarns, twine, cordage, etc.411911 2313 7899 0187 5317 1875 2615 43211 49316 881
'32Tanning, dyeing extracts, tannins, derivs,pigments etc.1 1002 6223 8962 4622 4543 0795 68010 04012 30712 27413 934
'29Organic chemicals2 1851 8145 5076 9518 18110 39010 17820 39928 82114 10913 616
'94Furniture, lighting, signs, prefabricated buildings2927154721 9271 0651 75910 3023 5017 4949 92812 611
Other31 83341 77042 52148 08963 884108 728135 55888 368122 498153 586435 010

Export structure from Russia to Israel

(according to the Federal Customs Service of Russia; thousand of USD)

Product codeProduct label20012002200320042005200620072008200920102011
TOTALAll products945 2461 095 2941 454 0731 437 2851 537 6371 551 2731 512 3542 034 0681 047 0001 683 0391 307 388
'27Mineral fuels, oils, distillation products, etc.255 886305 812581 897588 022475 254454 839638 9141 093 707356 560768 263453 028
'71Pearls, precious stones, metals, coins, etc.40 52774 65981 965128 769234 413222 310247 147467 991311 376576 228383 785
'10Cereals23 61435 73581 44342 51749 92440 035146 05850 153111 91280 827176 191
'72Iron and steel42 76742 56543 70675 79278 53072 13498 30386 88660 81062 44273 803
'23Residues, wastes of food industry, animal fodder1 1974375782 3383 3486 16512 4526 1202 5364 1876 766
'84Machinery, nuclear reactors, boilers, etc.1 0987298 3092 6485871 0895 0556 6861 9016 6821 233
'44Wood and articles of wood, wood charcoal3 7824 5824 4099 03816 65825 24238 99015 55817 52216 21018 163
'81Other base metals, cermets, articles thereof1 6775 0241 8634 6924 99613 95016 63420 4168 6449 91016 890
'48Paper and paperboard, articles of pulp, paper and board12 49111 92412 79216 11811 8988 08112 19318 43814 78914 99714 932
'31Fertilizers1 6891 0891666 7664 8774 9709 5133 2347 2636 1175 293
'76Aluminium and articles thereof9 45518 81913 0378 51613 63643 39357 23833 24526 97049 81137 681
'38Miscellaneous chemical products9165455451 0251 5722 5883 2704 6293 4714 1835 261
'15Animal,vegetable fats and oils, cleavage products, etc.5661962702762 1412 1853824086349231 018
'39Plastics and articles thereof631382763163862 9214 3334 7612 9484 7175 718
'29Organic chemicals2582386 3477 4868 2525 11510 9014093512 9214 938
Other549 260592 802616 470542 966631 165646 256210 971221 427119 31374 621102 688

Major foreign trade partners of Israel

(according to International Trade Center; thousand of USD)

CountryTurnover 2013%
World137 882 750100.0%
1USA25 910 59618.8%
2China10 644 3527.7%
3Honking6 597 1124.8%
4Belgium6 276 0794.6%
5Germany6 160 1754.5%
6United Kingdom5 870 2754.3%
7Turkey5 020 4653.6%
8India4 360 2903.2%
9Italy3 804 9182.8%
14Russian Federation2 480 9071.8%

Source — The Central Bank of the Russian Federation

Investment dynamics from Israel to Russia

(thousand of USD)

Item200720082009201020116M 2012
Investment and investment income received (total)52493.4253332.628020.899604.314376.705402.9
Direct investment received37292.6546442.741861.211186.74440.403251.26
Cumulative investment as at the end of reporting period (total)95912.8098516.30109320.9195603.42118590.66112855.23
Direct investment Cumulative as at the end of reporting period 63913.6084657.7083391.4280034.88109615.54107729.82

Investment dynamics from Russia to Israel

(thousand of USD)

Item200720082009201020116M 2012
Investment and investment income received309989.303924.805038.484389.614688.803296.78
Direct investment received98.60--650.00-5.62
Cumulative investment as at the end of reporting period6441.6802.002133.121540.091360.131563.9
Cumulative direct investment as at the end of reporting period98.6098.6098.60548.60548.60607.41

The low Russian-to-Israel investment level can be explained by the requirements to foreign companies willing to participate in construction and property development activities. The requirements are unacceptable to the majority of Russian companies, in particular in energy and transport infrastructure construction that is usually financed by the contractor with a gradual investment return after a number of years of infrastructure use.

Integration

In 2012 during the Vladimir Putin and the Israel’s president Shimon Peres and prime minister Benjamin Netanyahu negotiations the Israeli party proposed to establish a Free Trade Area with Russia.

In March 2014 the Customs Union and Israel set up a joint FTA-perspective research group.

Russia-Israel bilateral agreements

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