In a report released Friday, the committee said a rise in Russian protectionism – in addition to the economic downturn – is a large reason for the recent drop in Canadian shipments to Russia.

In 2009, Russia ranked 25th as a destination for Canadian commodity exports, with only 0.2% of goods exported from Canada destined for that country. B.C. was ranked 32nd as a source of goods for Russia with just 0.1% of the province’s commodity exports shipped there.

With a little more than 4% of total Canadian exports to Russia originating in B.C., the province ranked fifth among the provinces as a source of goods in 2009. Ontario (30%), Alberta (25%) and Quebec (22%) were the main Canadian sources of exports.

The top Canadian exports to Russia in 2009 were pork and aircraft – both of which originated mainly in Ontario and Quebec. British Columbia’s top exports to Russia were seafood and machinery and equipment used in the mining industry.

Russia ranked 24th as a source for imported goods into Canada.

B.C.’s trade with Russia rose from less than $15 million during the 1990s to a peak of $74 million in 2008. It plunged to $34 million in 2009.
In addition to protectionism, the Senate committee said that onerous bureaucratic processes and corruption in Russia have not helped trade relations.

Said the report: “Canadian companies will have to exercise caution and have a great deal of patience, taking a long-term view of the opportunities available in Russia.”

It said the highest levels of corruption in Russia are found in the ranks of public officials and civil servants.

In 2009, Canadians invested approximately $725 million in Russia, while Russians invested about half that in Canada. Canadians invested approximately $200 million in Russia the early 2000s.

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