European goods deliveries to Russia plummet to 25-year low

Russia's economic ties with its former largest trading partner, the European Union, continue to deteriorate.

According to Eurostat data, goods deliveries from European countries to Russia fell by 18% in August compared to July, reaching just 2.5 billion euros. This marks a staggering two-thirds decline from pre-war levels, when imports from the EU averaged 7-8 billion euros per month in 2021, News.Az reports, citing Russian media.

The total trade turnover between Russia and the EU has now dropped to levels last seen in 1999, totaling 5.1 billion euros in August. Russian exports to European nations also decreased by 12%, falling to 2.6 billion euros.

Customs statistics reveal that from January to August, goods imports from Europe declined by 10.8%, totaling $47.9 billion. Overall imports from other regions also experienced significant drops, including a 4.6% decrease from Asia ($118.1 billion), a 9.9% decrease from America ($9.3 billion), and a 3.4% decrease from Africa ($2.2 billion).

The situation may worsen soon, as Raiffeisenbank, the last major EU bank still operating in Russia, is beginning to scale back its operations and limit cross-border payments. Under pressure from the European Central Bank, the bank plans to restrict trade operations to only a select few large companies, primarily affecting importers of consumer goods.

Sources within trading and logistics firms have indicated that this could lead to an even greater reduction in the variety of products available in stores, which have already seen the departure of familiar brands since the onset of the war. "Consumers will notice the absence of brands they’ve relied on for decades, leading to more gaps on store shelves," a source told The Moscow Times.

Between January and August, imports of textiles and shoes into Russia have already decreased by 9%, amounting to $12.1 billion, according to the Federal Customs Service. Analysts from Alfa Bank have warned that due to ongoing cross-border payment issues, the selection of clothing and other goods in Russian stores could continue to shrink over the next 6-9 months.

News.Az