• 28/02/2024 23:13

EU exports to Russia fell to 37% of pre-war levels

After the start of Russia's full-scale invasion of Ukraine in February 2022, EU exports to Russia fell to 37% of pre-war levels. This is evidenced by data from the Munich Institute for Economic Research Ifo, reports Spiegel.

EU exports to Russia fell to 37% of the pre-war level

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One of the reasons for the still high volume of exports to Russia is that only 32% of all goods from the EU are subject to sanctions.

“As for luxury goods, for example, the export of champagne to Russia is subject to sanctions, but not prosecco,” said Feodora Teti, deputy head of the Ifo Foreign Trade Center.

In addition, many sanctioned goods are from The EU can be supplied to Russia indirectly through third countries.

According to the Ifo Institute, about a third of sanctioned goods are not available in Russia compared to the pre-war period due to export restrictions from the EU and other Western countries.

< p>For Russia, China is the most important alternative country of origin for sanctioned products: 61% of these goods originate in China. In 2021, this share was only 35%.

13% of all goods subject to Western sanctions come to Russia from Turkey – in 2021 it was slightly less than 3%.

From Armenia, Russia now also receives a small share—about 1%—of all sanctioned goods. During the same period, exports from the EU to Armenia doubled.

“In the case of China, the increase in exports to the Russian Federation can be at least partially explained by the growth of domestic production. However, in the case of Turkey and Armenia, the sudden and sharp increase in exports to Russia raises suspicions of sanctions evasion,” Teti said.

According to the latest data from the Federal Statistical Office, German exports to Russia fell by about 38% over the year. to about €0.8 billion in November 2023. Accordingly, in November Russia ranked 16th among the most important destination countries for German exports outside the EU. In February 2022, Russia was in fifth place.

minfin.com.ua

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