Russian Post eyes parcel growth from Russia’s WTO entry

Russian Post is predicting significant growth in distance selling in connection with Russia’s accession to the World Trade Organisation – and a corresponding increase in the number of internal mail – parcels and packages. Marina Goncharova,  head of the company’s Directorate of Postal Services, said Russia Post believes its annual parcel volumes could increase at least 2-3 times as a result.

With Russia joining the WTO, she said new players will enter the Russian distance selling market – companies that previously operated only abroad.

This will increase the number of active users of online shops in the Russian domestic market and will be a powerful incentive for enhancing Russia’s trade over the Internet, Goncharova suggested.

Under the terms of its membership in the World Trade Organisation, Russia is to create favorable conditions for foreign players in its markets. Russian Post said this will result in increased competition between domestic and foreign companies and, as a consequence, more choice for the consumer.

“This will be expressed again in lower prices for products, including those sold over the Internet,” said Goncharova, stating that increases in Internet commerce in Russia will mean an increase in the country’s mail volumes.

“We are ready to accept any number of postal items, in almost every corner of Russia,” she said. “For us this is also an incentive – an incentive to improve the quality of services and modernise production. Naturally, the strain on the postal system will increase, but we will do everything possible to effectively do the job.”