The Russian medical device market is heavily reliant on imports to meet demand where domestic alternatives are unavailable. Due to their essential nature, medical devices exports have largely circumvented Western export restrictions on the basis of humanitarian need. However, shipping to Russia has become an increasing complex endeavour amid the ongoing conflict with Ukraine, resulting in supply chain disruptions and increasing the risk of future inventory shortages, says GlobalData, a leading data and analytics company.

Jacob Fletcher, Medical Device Analyst at GlobalData, comments: “From the onset of the Russia-Ukraine conflict in late February, imports of essential medical devices into Russia from Western suppliers have remained exempt from economic sanctions. Many complex devices like diagnostic imaging scanners, ventilators, and dialysis equipment are imported into Russia and require a steady flow of components to maintain their operation. While the trade of these goods has continued, their delivery into Russia has become a complex task subject to numerous external pressures and bottlenecks, which could increase the risk of shortages in the coming months.”

Many land shipping routes through Russia, Belarus, and Ukraine have become too dangerous for operation and have been effectively closed. Freight forwarding companies have had to redirect shipments through slower and less efficient routes in nearby countries like Serbia, Latvia, and Turkey. Air and maritime cargo channels have also faced setbacks due to safety concerns in the Black Sea, insurance rate hikes, rising fuel prices, and airspace restrictions throughout the region. Tightened sanctions have also caused several Western marine insurers to cut their coverage of state-owned Russian shipping companies. This translates into reduced import volumes, increased costs, and delays in delivery of many imported goods into Russia including medical devices.

Fletcher adds: “As supply chain issues mount and global device manufacturers limit their activities in the region, Russia has made efforts to stabilize its medical device imports by streamlining regulatory processes to prevent inventory shortages. In early April, the Russian government announced the possibility of a list of medical devices that could become eligible for an expedited registration process.”