Status: 02/10/2023 4:01 p.m
Germany’s exports to Russia collapsed last year, and fewer goods were imported. But their value even increased. The main reason was the high energy prices.
German exports to Russia plummeted last year because of sanctions following the attack on Ukraine. Goods exports to Russia fell by 45.2 percent to 14.6 billion euros compared to 2021, as the Federal Statistical Office announced today.
In particular, the formerly important machine and chemical exports collapsed. The most important German export goods to Russia were pharmaceutical products, as the health sector was exempted from western sanctions.
Expensive gas, expensive oil
The amount of goods imported from Russia also fell by 41.5 percent. However, the imports even increased in value – by 6.5 percent to 35.3 billion euros. The reason is that energy prices, especially oil and gas, have risen sharply since the start of Russia’s war of aggression against Ukraine.
Until the second half of 2022, Russia was an important energy supplier for Germany. Only in the summer did natural gas stop flowing through the Nord Stream 1 Baltic Sea pipeline, and an EU embargo on Russian coal imports came into force. Germany received Russian oil until the end of the year.
Russia’s importance is falling
The so-called foreign trade balance with Russia was therefore minus 20.7 billion euros. According to the Federal Statistical Office, it is the largest deficit since the Russian Federation was founded in 1992. In 2021, imports exceeded exports by just 6.5 billion euros.
Overall, Russia, formerly ranked 15th among the most important buyers of German products, dropped to 23rd place. “In the ranking of the most important suppliers of goods, Russia fell from 12th to 14th place,” according to the statistics office. “Lack of energy imports from Russia were partly offset by supplies from other Eastern European countries, especially Kazakhstan.”
Oil and natural gas worth 7.8 billion euros were imported from the so-called CIS countries (excluding Russia). In terms of volume, this meant an increase of 17.1 percent. In 2022, the CIS included Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan and Uzbekistan. According to the statisticians, the value of German export growth to the CIS countries increased by 62.7 percent.
Trade deficit likely to narrow
The Committee on Eastern European Economic Relations does not expect a rapid trend reversal. “The prospects for export business with Russia remain bleak,” Russia’s managing director, Michael Harms, recently told Reuters news agency. “The war and its consequences, sanctions, recession and loss of purchasing power in Russia as well as the ongoing withdrawal of German companies from the Russian market are throwing us back decades in bilateral trade relations.”
Goods exports to Russia are likely to level off at a low level this year. “Since hardly any energy raw materials are now purchased from Russia, the trade deficit will also decrease significantly,” said Harms.