EU-Russia trade plummets.

The European Union's (EU) trade with Russia has fallen to its lowest level since the start of the war in Ukraine, with Russia's share of EU exports and imports now below 2%, according to data released by the EU's Eurostat statistics agency on September 1.

The latest data shows that while 9.6% of EU imports came from Russia in February 2022, when Moscow began its military intervention in Ukraine, this figure had fallen to 1.7% by June of this year. The share of EU exports to Russia decreased from 3.8% to 1.4% during the same period.

Statistics show that EU trade sanctions are having the desired effect and are severely restricting the flow of Russian goods into the bloc.

The value of EU sanctions since the start of the trade war amounts to €43.9 billion on exports and €91.2 billion on imports, according to the European Commission (EC).

When the conflict began more than 18 months ago, the EU's trade deficit with Russia temporarily widened as energy prices peaked, with EU imports from Russia exceeding exports by €18.5 billion in March 2022. This figure was only €0.4 billion in June 2023, a slight increase from the low of €0.1 billion in March of this year.

The significant drop in imports is due to the EU's efforts to reduce its reliance on energy products from Russia, with the trade deficit for energy products falling from €40.4 billion in Q2 2022 to just €5.7 billion in Q2 2023.

The proportion of fossil fuels such as coal, natural gas, and oil imported into the EU from Russia has decreased significantly.

An EC spokesperson said on August 31 that the EU has cut its share of natural gas imports from Russia from 24% in 2022 to just 15% in the first half of 2023.

Nevertheless, an analysis by Global Witness on August 30 revealed that EU imports of liquefied natural gas (LNG) from Russia between January and July this year increased by 39.5% compared to the same period in 2021, before Russia launched its military campaign in Ukraine.

This shows that the EU continues to be dependent on Russia for energy, simply replacing pipeline gas with ultra-cold fuel transported by sea.

Meanwhile, the EU facilitated the export of Ukrainian products – including grain essential for food production worldwide – through “Solidarity Corridors” as the country’s Black Sea ports were blockaded by Russia.

This initiative is driven by a special trade mechanism that provides tax exemptions for many Ukrainian exports.

From May 2022 to the end of July this year, the EU's "Social Solidarity Corridor" allowed the transport of 88 million tons of goods worth 35 billion euros from Ukraine, including nearly 49 million tons of agricultural products such as grains.

However, the EU's move has caused a surplus of grain in frontline EU countries bordering Ukraine – including Poland, Hungary, Slovakia, and Romania – leading to a sharp drop in agricultural prices in these countries and reducing profits for local farmers. The temporary ban on the sale of Ukrainian grain in these countries is set to expire on September 15 .

Minh Duc (According to Euronews, Reuters)

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