Russia's Foreign Trade Surplus Expands Significantly from January to November 2023, Over Doubling the Previous Figures
Nope, This Ain't Your Regular Trade News
Here's the gist of what happened with Russian trade in the first 11 months of 2023:
New figures show a significant drop in Russian exports, reaching $385.9 billion, compared to $538.1 billion in the same period last year. Meanwhile, imports have made a jump, from $228 billion to $259 billion.
Europe used to be a major market for Russian exports, but it's seeing a steep decline, with exports dropping to $78.4 billion from $248.3 billion. Imports from European countries have also taken a hit, going from $80.7 billion to $71.7 billion. On the flip side, Russia's exports to Asia have surged, reaching $276.1 billion compared to $257.1 billion last year, and imports have also risen, up from $128.7 billion to $169.9 billion.
Trade with African countries is on the rise, with exports increasing to $19.8 billion from $12.9 billion, and imports to $3 billion from $2.8 billion. Trades with North and South American countries have taken a hit, with exports dropping to $11.4 billion from $18.8 billion, and imports falling to $13.7 billion from $15.2 billion.
Mineral products still dominate Russian exports, making up 61% of the country's export structure. However, their share has decreased compared to the same period last year. Metals and products made from them are the second largest category, with their share increasing. Agricultural products, interestingly, are the only export category to show an increase in absolute terms.
Imports into Russia are largely machinery, equipment, and transport vehicles, with their share increasing to 50.8%. The share of chemical industry products has decreased, while agricultural products maintain a steady position.
The shift in Russian trade can be attributed to several factors: the EU's imposition of sanctions and policy shifts, Russia's pivot to Asia, particularly China, and logistical and infrastructure adjustments. The EU's sanctions, destruction, and loss of key transit infrastructure, and the EU’s strategic disengagement from Russian energy have led to a significant drop in exports to Europe. On the other hand, Russia has intensified its pivot to Asia, especially China, as a dependable export market for energy and other goods.
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Enrichment Data:The decrease in Russian exports to Europe and the increase in exports to Asia can be linked to several geopolitical, energy infrastructure, and trade realignments. EU sanctions and policy shifts, the destruction and loss of key transit infrastructure, and the EU's strategic disengagement from Russian energy caused a sharp reduction in exports to Europe. At the same time, Russia has intensified its pivot to Asia, especially China, as a dependable export market for energy and other goods. This shift in trade partners has resulted in the observed decline in exports to Europe and growth in exports to Asia.
- The decline in Russian exports to Europe and the subsequent increase in exports to Asia in the first 11 months of 2023 can be attributed to geopolitical, energy infrastructure, and trade realignments, such as the EU's sanctions and policy shifts, the destruction and loss of key transit infrastructure, and the EU’s strategic disengagement from Russian energy.
- The global finance industry plays a crucial role in this shift, with Asia, particularly China, becoming a dependable export market for Russian goods, contributing to the increase in Russia's exports to the region.
