Germany’s Trade with Russia Collapses Since Ukraine War, EU Also Sees Sharp Decline
Germany’s imports of goods from Russia dropped by a staggering 95% between 2021 and 2024, while its exports to Russia fell by 72%, according to data released Wednesday by the country’s federal statistics agency, Destatis.
Across the broader European Union, imports from Russia declined by 78% and exports by 65% during the same period. This shift resulted in a significantly reduced trade deficit—falling to €4.5 billion ($5.1 billion) in 2024 from €147.5 billion in 2022, Destatis reported.
Key Insight
“The persistent import surplus in 2024 was mainly driven by continued substantial EU imports of oil and natural gas from Russia,” the agency noted in its report.
Why It Matters
Even as Russia avoided direct tariffs from the Trump administration, its trade relationships with both the U.S. and EU have been severely impacted by sanctions related to its ongoing invasion of Ukraine. Despite this, Russia’s economy has fared better than expected during the three-year conflict. However, the country is now facing fiscal challenges due to falling energy prices and declining budget revenues.
In April, Russia’s economy ministry revised down its projections for oil and gas export revenues between 2025 and 2027, anticipating a 15% drop in 2024 due to weaker global oil prices. These revenues are a critical pillar of the Russian state budget.
Trade Snapshot
As of 2020, the European Union was Russia’s largest trading partner, accounting for 36.5% of Russia’s imports and 37.9% of its exports, according to European Commission data.
Current Developments
The European Commission has put forward an 18th round of sanctions against Russia in response to its war in Ukraine. The proposed measures, announced by Commission President Ursula von der Leyen on Tuesday, target Russia’s energy income, financial institutions, and defense sector.
($1 = €0.8758)
