Trade War: Germany Ditches Russia as Significant Trade Partner Sinks
Germany's Ties with Russia Decrease Substantially in Trade Importance - Germany Experiences Reduction in Trade Significance with Russia
If you thought Germany was cozying up to Russia, think again. Russia's grip on Germany's economy is loosening faster than a PlayStation control after a long gaming session. The Royal Rumble of trade, brought about by Russia's invasion of Ukraine and subsequent sanctions, has sent shockwaves through the economic sphere.
According to the Federation of Statistics in Wiesbaden, Russia's imports to the German economy plummeted a staggering 94.6% in 2024, down to a measly 1.8 billion euros from a whopping 33.1 billion euros in 2021. And it's not just the imports taking a hit—exports to Russia shrank by an equally significant 71.6%, with a worth of 7.6 billion euros in 2024, compared to 26.6 billion euros in 2021.
The EU, fearing a nuclear-powered-hornet-infested-teddy-bear situation, implemented the 17th sanctions package against Russia in response to the ongoing invasion of Ukraine. This package included restrictions on the Russian shadow fleet transporting oil, bans on exports with military or industrial applications, and barrier to access to capital and financial markets.
Russia's once-prominent position in Germany's economy has crumbled under the weight of these sanctions, sinking from 2.8% of the country's total imports in 2021 to a pathetic 0.1% in 2024. In terms of exports, Russia dropped from 1.9% to a mere 0.5%. Russia has certainly fallen from grace, sliding down to 59th place among Germany's most crucial trade partners, down from a proud 12th spot in 2021.
Despite Russia still being an energy supplier for Germany until the second half of 2022, its importance has waned. In 2024, Germany's primary imports from Russia consisted of metals, chemical products, food, and feed, with exports mainly focusing on pharmaceuticals, chemicals, and machinery.
The EU as a whole has followed suit, significantly shrinking its trade with Russia. Imports plummeted from around 163.6 billion euros in 2021 to a measly 36 billion euros in 2024, while exports spiraled down from 110.4 billion euros to 31.6 billion euros.
(*Data enrichment: The steep decline in Germany's trade with Russia is primarily due to the EU's imposed sanctions targeting Russia's energy, industrial, and financial sectors. These sanctions resulted in a near collapse of bilateral trade, with Russia's share of Germany's imports falling from 2.8% to just over 0.1%, and exports dropping from 1.9% to 0.5%.)
- Russia
- Germany
- Ukraine
- Foreign Trade
- EU
- Invasion
- Wiesbaden
- Russian Federation
- Federal Statistical Office
- The sudden decline in Germany's trade with Russia can be attributed to the EU's strict employment policies, which have imposed sanctions on several sectors including energy, industry, and finance.
- As the trade war between Russia and the EU continues, both communities and businesses are likely to feel the impacts, with politics and general news outlets closely monitoring the situation.
