Russia’s share in total imports of EU countries fell to 2%

Russia’s share in the total imports of goods from the European Union countries at the end of September 2023 decreased to 2%, according to Eurostat data. In February 2022, it was almost five times higher – 9.5%. The Russian Federation’s share in total European exports over the same period decreased to 1.4% from 3.8%. The EU trade deficit with Russia, which peaked at €18.6 billion in March 2022, amounted to €1 billion in September 2023.

According to Eurostat, approximately two-thirds of the remaining Russian exports to the EU are made up of purchases of natural gas, petroleum products, nickel, fertilizers, iron and steel. Over the past two years, Russia’s share in European imports of almost all of these goods has decreased noticeably (see graph): the share in imports of natural gas decreased by 27%, petroleum products – by 25%, nickel – by 14%, iron and steel – by 9% . At the same time, the USA (gas, oil products, nickel), Norway (gas, oil products), Algeria (gas), Saudi Arabia (petroleum products) and China (iron and steel) increased their shares in the supply of these goods. According to the Russian Federal Customs Service, Russian exports to Europe in the nine months of this year decreased by 70%, to $65.3 billion (For more details see “Kommersant” dated November 15).

Interestingly, Russia’s EU fertilizer imports returned to the “pre-war” 27% after declining to 17% in the third quarter of 2022. This is explained by the fact that due to the high cost of energy (mainly natural gas), it has become more profitable for many European countries to buy fertilizers in the Russian Federation than to produce them locally.

The EU’s trade balance with all countries at the end of the third quarter showed a surplus of €18 billion, Eurostat records. In the third quarter of 2022, the EU trade deficit was the highest since 2019 and amounted to €155 billion. The value of imports in July-September 2023 decreased by 4.6%, exports by 1.2%. The dynamics of imports were most seriously affected by the decrease in the cost of supplies of industrial goods (by €6.6 billion quarter-on-quarter), as well as cars and other vehicles (by €6.2 billion). The most noticeable reduction in the cost of supplies to foreign markets was recorded in these same industries: by €2.7 billion and €6.9 billion, respectively. The trade deficit in the energy sector in July-September decreased to €93 billion from a record €193.8 billion in the same period last year.

Kristina Borovikova