Summary
Market Entry
Current Market Trends
Main Competitors
Current Demand Registration Process
Reimbursement
Barriers Procurement & Tenders
Trade Events
CS Contacts Best Prospects Market Size
Capital: Moscow
Population: 146,880,432
GDP: $15,77.52 (2017)
Currency: Russian ruble
Language: Russian
Russia’s healthcare system is still evolving rapidly, creating many promising areas for U.S. medical equipment exports. It is currently estimated that only 20% of the Russian population of 146 million has access to quality healthcare. The majority of hospitals and polyclinics are public and belong to federal, regional or local governments.
At the moment, the two major sources of public healthcare funding - mandatory insurance funds (30%) and spending supported by federal and regional budgets (70%) - do not cover all healthcare expenses. As a result, a significant portion of overall (public and private) healthcare spending (about 20%) is covered out of patients’ pockets. Voluntary healthcare insurance programs account for approximately one-third of the total private healthcare expenditures. According to long-term reform plans, mandatory insurance funds will serve as the main source of healthcare funding, providing transparency and control over cash flow within the system.
Companies attempting to enter the Russian market need to be willing and able to do the following:
The Russian medical devices market is very attractive for U.S. companies. The market is one of the largest in central and eastern Europe. It still heavily relies on imported medical devices, despite Russian government efforts to develop a strong and robust medical technology industry. Public medical facilities prefer to buy medical devices from foreign manufacturers if they have the choice. In February 2017, the Russian government extended the re-registration deadline for medical devices until 2021, which saved a lot of time, effort, and money for medical devices manufacturers already present on the Russian market.
The 2016 market for imported medical devices was segmented as follows: diagnostic imaging: 19.4%, consumables: 15.2%, dental products: 8.9%, orthopedics & prosthetics: 8.6%, patient aids: 13%, and “other medical devices:” 35%. Industry experts generally foresee growth in medical device imports in the coming years.
Germany, the United States and China are Russia’s leading suppliers. Principal U.S. exports include high-tech medical products, diagnostic imaging, orthopedics and prosthetics. Chinese exports consisted mostly of bandages and dressings, and therapeutic appliances. The following American medical device manufacturers are among those present in the Russian market: J&J, GE Healthcare, Medtronic, Varian, Baxter, and Stryker. Among the leading European manufacturers present in Russia are Philips and Siemens.
Current Demand
The Russian market for medical devices has potential for growth because of an aging population. As a result of the Russian National Project “Health,” that took place from 2005 to 2011, over 10,000 municipal polyclinics received new high-tech medical equipment. This equipment needs servicing, spare parts and disposables, so it is a good opportunity for U.S. companies to supply these products and services.
Opportunities also exist beyond in the main cities of Moscow and St. Petersburg. As other Russian regions invest in new equipment and supplies, it is important for U.S. companies to explore these regions as well. The “Russian Strategy for the Development of Medical Science until 2025,” which was approved in 2013, also provides concrete opportunities for U.S. companies.
Registration Process
In addition, the five countries of the Eurasian Economic Union (EAEU) are moving toward the common market for medical devices. This process was started back in January 2016 and should be completed by January 2021, when manufacturers will have a choice to have one marketing authorization – registration certificate for all five member countries.
The government Decree No. 968, issued in September 2014, aims to increase transparency in the medical device reimbursement system and determines the procedure for developing medical device reimbursement lists. The legislation focuses on implantable devices and medical aids. The reimbursement list contains brand names of medical devices that are to be compensated from public sources and will be updated at least once every two years.
Companies are supposed to submit clinical data, a health economic evaluation, results of safety inspections, and data regarding the volume of the manufactured/imported product. Then the special commission, which will include representatives from various Russian ministries and government agencies, reviews these document and make a decision to include the products into the list.
Barriers
The most important market barriers are the following:
Procurement & Tenders
The regional authorities are responsible for procuring medical devices for hospitals, scientific research institutes and polyclinics. Local authorities in partnership with their medical establishments are now responsible for identifying their requirements, drawing up the procurement list for the necessary equipment, inviting tenders and awarding contracts. The procurement of medical devices under national government schemes is paid for with government funding and the regional authorities have to contribute a certain percentage of the contract value.
Moscow International Optical Fair (MIOF) Moscow September 11-13, 2018 Dental Expo Moscow September 24-27, 2018 International exhibition of equipment for non-destructive testing and technical diagnostics (NDT) Moscow October 23-25, 2018 International exhibition of testing and measuring equipment, testing and control Moscow October 23-25, 2018 Zdravookhraneniye, International Exhibition for Health Care, Medical Engineering and Pharmaceuticals Moscow December 3-7, 2018 Laboratory Diagnostics Moscow March, 2019
Local Associations
IMEDA (International Medical Device Manufacturers Association): http://en.imeda.ru/
U.S. Commercial Service Contact Information
Name: Yuliya Vinogradova
Position: Commercial Specialist
Email: yuliya.vinogradova@trade.gov
Phone: +7 495 728 54 05
Best Prospects
In February 2015, Russia barred foreign medical device manufacturers from participating in government tenders for a specific list of medical devices (mostly low-technology goods) if two producers from an EAEU Member State participated in the tender. In December 2016, the Russian government expanded the list of covered goods to include 86 additional products (such as gauze and cotton dressings, glucometers, defibrillators, and certain types of tomography scanners). Despite this preference, there are still opportunities for U.S. suppliers where EAEU analogs do not exist. These devices usually use innovative technologies and require large investments in R&D, including diagnostics and visualization, cardiovascular, ophthalmology, orthopedics, laboratory diagnostics, and urology equipment.
Statistics Snapshot
Market Size
Healthcare spending (including investment)
... as percent of GDP
6.31%(2016)
Hospitals, Procedures, Healthcare Professionals
Number of hospitals
5,457 (2016)
…Public
5,100 (2016)
…Private
357 (2016)
Number of hospital beds
1,226,514 (2016)
Number of surgical procedures
15,487.7 (2016)
Physicians
708,641 (2016)
Dentists
61,135 (2016)
Demographics
Population
Life expectancy men/women
total population: 70.8 years
male: 65 years
female: 76.8 years (2016 est.)
Infant mortality total:
6.9 deaths/1,000 live births
male: 7.7 deaths/1,000 live births
female: 6 deaths/1,000 live births (2016 est.)
Percent of population older than 65
18.6
Annual deaths
13.6/1,000 population (2016 est.)
...caused by [cardiovascular disease]
110.7/1,000 population
...caused by [cancer]
456,382 in 2012 and predicted 496,531 by 2035
Sources: BMI
Notice to Visitors!
The link you have chosen will take you to a non-U.S. Government website.
If the page does not appear in 5 seconds, please click this: outside web site
Export.gov is managed by the International Trade Administration and external links are covered by its website disclaimer statement.
BuyUSA.gov is managed by the International Trade Administration and external links are covered by its website disclaimer statement.