Market trends? When dealing with this Eastern European power, these trade points must be kept in mind

Be sure to pay attention to risks when dealing with Russian clients!

According to the Russian television website on November 7th, the trade volume between Russia and China increased by over 25% year-on-year from January to October this year, reaching $196.5 billion for the first time.

According to the prediction of the Russian Federal Customs Administration, the total trade volume between Russia and China for the whole year of this year may significantly exceed the $200 billion level originally planned by the two countries in 2024.

The General Administration of Customs of China stated that from January to October this year, Russia's exports to China amounted to $106.4 billion, an increase of 12.4%; China's exports to Russia reached nearly 90.1 billion US dollars, an increase of 52.2%.

With the progress of China Russia trade relations, the issue of accounts receivable is also increasing. In the past two years, our company has received inquiries about Russian arrears, and some cases cannot be accepted due to subjective factors, which should alert foreign traders!

In the Russian cases that our company has handled, there were multiple reasons for missing debt information, resulting in minimal non litigation collection effects. And even if the lawsuit is pursued, the court cannot accept such cases.

Regarding the Russian transaction, our company has conducted in-depth communication with Russian collection lawyers based on our past experience in handling cases, and provided the following professional suggestions for foreign traders to organize:

(1) Verify the qualifications of the trading company. In Russia, a company can be successfully registered for only $100. Due to the low registration cost and extremely easy registration process, it is often used by some criminals to commit fraud. Therefore, it is essential to carefully verify the situation of the other party's company before entering into transactions with Russian clients.

The most common way to identify fraud is to retrieve the credit report of the cooperating party. In addition to verifying the company's basic information and registered capital, it is also necessary to compare the contact person of the transaction party and whether they are real employees of the company to prevent fraudsters from impersonating their identity. If the means of enterprise identification are limited, it is advisable to entrust a third-party foreign-related service agency to prevent risks in advance.

(2) Pay attention to contract documents in transactions. In foreign trade transactions, contracts are often overlooked by foreign traders, thinking that having bills of lading, packing lists, invoices, etc. can serve as strong evidence; Little did they know that in Russia, once a customer defaults, if there are only invoices and other documents, but there are no contract documents signed and stamped by both parties, the court will not accept them.

Legitimate Russian companies attach great importance to contracts, and contracts are necessary for any transaction. Of course, this document is also an important factor in determining the success or failure of collection.

(3) Pay attention to the act on provide service files in transactions. The document requires signatures and seals from both the buyer and seller to confirm that the goods have been signed for by the buyer or that the seller has shipped them as agreed. The main purpose of this document is to prove that there is no dispute between the two parties in the transaction, and it is the second most effective document after the contract.