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 the Russian government’s 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 present on the Russian market.

The total market size for medical equipment has been estimated at USD5,148 million for 2018.

In addition, the five countries of the Eurasian Economic Union (EAEU) are moving toward a common market for medical devices. This process commenced in January 2016 and should be completed by January 2021, when manufacturers will have a choice to apply for solitary marketing authorization or a registration certificate for all five member-countries.

The 2016 market for imported medical devices was segmented as follows: diagnostic imaging: 19.4 percent; consumables: 15.2 percent; dental products: 8.9 percent; orthopedics and prosthetics: 8.6 percent; patient aids: 13 percent; and “other medical devices”: 35 percent. 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 technology medical products, diagnostic imaging and orthopedics, as well as prosthetics. Chinese exports consisted mostly of bandages, 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.

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 at least two producers from EAEU member-countries 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.

Russia’s aging population contributes to the medical device market’s growth potential. As a result of the Russian national “Healthcare” project carried out from 2005 to 2011, over 10,000 municipal polyclinics received new high-technology medical equipment. This equipment needs servicing, spare parts, and disposables, providing an opportunity for U.S. companies to supply these products and services.

During President Putin’s May 7, 2018 inaugural speech, he spoke about healthcare issues and his comments were reflected in the decree, “On the National Goals and Strategic Objectives of the Development of the Russian Federation through 2024.” As part of this initiative, Russia is undertaking efforts to enhance systems for early disease detection and distance monitoring. The main areas of focus are cancer, cardiovascular, and pediatrics. Anticipated total healthcare investments for the next six years will be approximately USD160 billion.

Opportunities for U.S. medical device producers exist not only in the main cities of Moscow and St. Petersburg, but also in Russia’s regions. The “Russian Strategy for the Development of Medical Science Until 2025,” which was approved in 2013, also provides concrete opportunities for U.S. companies that can supply scientific equipment for use in research and development.