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20.07.2020

Transit of Sanctioned Goods Through Russian Territory Is Open

Sanctioned goods can now be transported through Russian territory by road and railway. This was made possible by launching a national freight transport tracking system using electronic navigation seals and granting authority to the sealing operator, Digital Platforms Development Center.

The system was created under Presidential Decree No. 290 dated June 24, 2019; requirements for the operators and the electronic sealing procedure are defined in Order of the Ministry of Transport of the Russian Federation No. 13 dated January 14, 2020.

The opened transit of sactioned goods will boost container transportation through Russia, provide an opportunity for Russian logistic companies to obtain more work in a time of the COVID-19 pandemic and cooperate with new major forwarders in Asia and Europe, noted Alexey Semenov, Deputy Minister of Transport of Russia.

The forecast transit volume of sanctioned goods groups is over 82,000 road and railway shipments a year. Transport through Russian territory has high growth potential due to shorter distances and quick delivery times compared with the traditional sea routes. According to estimates by international road carriers, every trip bypassing Russian territory costs USD 5,000 more.

"Now we will test the technology and information exchange standards between shipping participants for sanctioned goods, and then develop them to create a digital transport corridor ecosystem and a single trust space within the EAEU," Deputy Minister added.

Online data on the electronically sealed cargo route are accessible to carriers and forwarders in the personal account on the operator's website: crcp.ru. The regulatory authorities receive online data on the compliance with the sanctioned goods shipment procedure.

"For the Federal Customs Service, the tracking technology guarantees shipment transparency, because we can see all information on the movement and integrity of the goods. Together with the Ministry of Transport, the operator and the forwarders we have conducted large-scale pilot projects, and now we are fully ready to control the transit of sanctioned goods," Ruslan Davydov, First Deputy Head of the FTS of Russia emphasized in his turn.

The Digital Platforms Development Center has arranged application and removal of electronic seals at 20 road and 10 railway Russian border inspection posts. Their list is determined by Order of the Russian Government No. 1877 dated December 27, 2019.

Domestically produced multi-use electronic seal operates up to 45 days once charged at the temperature of -40C to +70C. Unlike foreign analogues, it ensures protection of the transmitted information. The service is based on Russian software.

Elena Ignatenkova, General Director of the Digital Platforms Development Center explained that the operator provides support for the system users 24/7 via the personal account and contact center hotline in Russian and English: 8 800 550 4334 / +7 499 755 4334. Carriers can request all required services remotely using the website.

In May 2020, FTS and Ministry of Transport of Russia together with Russian Railways and Maersk introduced transit multi-modal shipment of goods which were transported between two Russian ports using electronic navigation seals. The cargo movement was controlled over the entire railway shipment route, including the port territories. Since April, RZD Logistics and UTLC ERA have been conducting test transit shipments from Europe to China by raillway. Earlier, Russia and Kazakhstan implemented a successful pilot project to monitor road transit within the EAEU.

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