The owners of Russian shopping centers demanded entry without visas to retailers from “friendly” countries
The owners of shopping centers (SCs) expect to receive retailers from Asia, South and South America based on 3 million sq. m. m of retail space. The Russian Council of Shopping Centers (RSTC) proposed to the Russian Foreign Ministry to cancel visas for businessmen from “friendly” countries or reduce the cost of issuing them. About it writes “Kommersant” with reference to the appeal of the President of the RSTC Dmitry Moskalenko to Foreign Minister Sergei Lavrov.
The Ministry of Foreign Affairs did not respond to the newspaper’s request, and the Ministry of Industry and Trade did not answer the question of whether the ministry would provide RSTC on the proposals sent to Sergey Lavrov. The RSTC clarified that retailers and brands stopped working in the shopping center, which together occupy about 7.5 million square meters. m, after the departure of the remaining Western companies in the coming months, another 3 million square meters will be released throughout the country. m. For the owners of the shopping center, this means reaching a pre-bankruptcy state, Dmitry Moskalenko warned RSTC.
According to the Commonwealth Partnership (CMWP), the share of space in the Moscow shopping center arrested by retailers who have suspended their activities is 11.6%, the real vacancy in the segment has increased slightly – from 10% at the end of 2021 to 11.2%. Analysts expect that if key foreign brands leave the Russian market, 30% of the shopping center will be empty by the end of the year. Moskalenko-economy that Western tenants have only now begun to break contracts and have not yet restored the premises, but in their place it will be necessary to attract retailers from “friendly” countries.
Nikoliers Anna Nikandrova Partner reminded that it takes at least a year for any foreign brand to enter the Russian market, that is, new stores will open no earlier than the first quarter of 2023. Moskalenko believes that breaking down barriers to entry as a key factor in attracting new brands to Russia represents the volume of visa processing.
For Turkish citizens, in particular, the price of a single-entry visa to Russia is $80, and a multiple-entry visa is $240, which “is a significant amount for these business countries,” discussion within the RCTC. The council added that under the visa system, operational visits to countries are impossible, and the abolition or high cost of visas for businessmen from Asia, Africa and South America ensures the effectiveness of international trade.
Evgenia Khakberdieva. Now there are very few retailers who are ready to enter the Russian market even through partners, and those who can have stores of goods and logistics services, import it.
CMWP Olga Antonova added that the visa regime is not directly noticeable on the investment climate, which has seriously affected the situation in 2022. Facilitated visa regime is unlikely to significantly affect the launch of new brands in the shopping center, major director of the real estate department of Accent Capital Svetlana Kuzmina.
In the current situation, the allowance for legitimate business and importers has increased significantly, Yevgenia Khakberdieva believes. According to Antonova, all players, including foreign companies willing to work in Russia, need measures aimed at motivating business, including subsidies, tax breaks for individuals where import substitution is not yet taking place.