Russian Exports are Rapidly Declining

Written by Kathrine Frich

Jul.11 - 2024 1:40 AM CET

Photo: Shutterstock
Photo: Shutterstock
Exports from Russia to Europe plummeted by 37%, amounting to $26 billion.

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Russia's external trade balance has shown a notable increase since January 2024, rising by 16.3% to reach $64.3 billion, according to the Federal Customs Service of Russia (FTS).

Export Dwindled Significantly

According to ABNews this positive growth, however, comes amid broader challenges in the country's export dynamics.

The overall export of goods from Russia has decreased by 0.6% to $172.1 billion. This decline has been particularly pronounced in relations with Europe, where exports of petroleum products, nickel, natural gas, fertilizers, iron, and steel have dwindled significantly.

Specifically, exports from Russia to Europe plummeted by 37%, amounting to $26 billion.

Shifted Focus

In response to these challenges, Russia has shifted its export focus towards Asia and Africa. Over the past five months, exports to Asia have increased by 10%, while exports to Africa surged by 20.73%. This strategic pivot reflects Russia's efforts to diversify its export destinations amidst declining demand from European markets.

The geopolitical landscape and economic sanctions continue to shape Russia's trade policies. Sanctions imposed by Western nations have limited Russia's access to European markets, prompting a strategic reorientation towards emerging markets in Asia and Africa.

These regions offer expanding opportunities for Russian exports, albeit with different economic and political dynamics compared to European counterparts.