Russia's Ministry of Industry and Trade Says Most Overseas Shoes Company Will Move Back to China
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September 24, 2025
According to "Russian News," Oleg Kashev, Deputy Director of the Department of Forestry and Light Industry at the Russian Ministry of Industry and Trade, made a significant announcement at the all-Russian shoe trade forum held in Moscow. He revealed that Russia's largest foreign shoe company is set to relocate its operations within the country, urging overseas Russian shoe merchants to consider returning home.
Kashev highlighted several key factors that make this an ideal time for foreign shoe companies to re-enter the Russian market. First, labor costs in China have risen significantly, now comparable to those in Russia, which stands at around $330 per person. Meanwhile, the United States has also started moving some light industry production back from developing countries.
Second, the Russian government has taken steps to support domestic manufacturing by removing import tariffs on essential shoe materials such as heels, soles, and leather tanners. Additionally, technical equipment used in shoemaking is exempt from value-added tax (VAT). This year, the government plans to release a second supplementary list of footwear business equipment to further boost local production. The Ministry of Industry and Trade has also submitted proposals to the Ministry of Finance and the government regarding taxation procedures for shoe-making enterprises.
Third, the state has intensified efforts to combat counterfeit and smuggled footwear. In 2009, illegal imports of shoes dropped by 8%. According to data from the Russian Ministry of Industry and Trade, counterfeit and smuggled shoes currently make up about 40% of the total market, highlighting the need for stronger enforcement and better regulation.
With these strategic moves, Russia is positioning itself as a more attractive destination for shoe manufacturers, both domestic and international. The combination of reduced costs, supportive policies, and improved market conditions is expected to drive a new wave of investment and growth in the sector.