EU trade with Russia hit by Ukraine tensions
2014-08-19 10:10:54
Trade between the European Union and Russia fell by €13.1 billion in the first half of 2014, according to estimates published today by Eurostat.
Total EU exports to Russia fell by 12% compared with the same period in 2013, from €49.6bn to €43.6bn. Imports from Russia fell by 8%, or €7.1bn. The EU still imports almost twice as much from Russia as it exports, with a trade deficit of €38.6bn.
The EU’s main exports to Russia are machinery and transport equipment, chemicals, medicines and agricultural products. Russia’s main exports to the EU are oil and gas.
Trade between the two sides has been hit by tensions arising from Russia’s involvement in unrest in Ukraine. Russia annexed the Ukrainian region of Crimea in March and the EU has accused it of providing training and weapons to rebels in eastern Ukraine.
The EU first announced sanctions on Russia in April and has gradually increased their scope. On 29 July, it placed an embargo on arms sales to Russia and limited the ability of state-owned banks to raise money on European financial markets. Russia banned most western food imports on 7 August.
EU trade with Switzerland also decreased in the first half of 2014, according to Eurostat. Exports to Switzerland fell by 22%, worth €59.8bn in the first six months of this year.
By contrast, EU trade with China has continued to grow, rising 10% to €64.9bn. Imports from China were worth €115.8bn, up 3% year-on-year.
Trade between the EU and South Korea is also buoyant, following a landmark trade deal between the two that came into effect in 2011. Exports with South Korea increased by 8% to €16.7bn, while imports increased by 10% to €16.4bn.