Decrease in Russian Trade Significance for Germany Experiences Substantial Reduction - Germany's Reliance on Russian Trade Decreases Significantly
Germany's once close relationship with Russia as a trading partner is losing steam. In a stark contrast to 2021, imports from the Russian Federation in 2024 dropped a whopping 94.6% to just 1.8 billion euros following the outbreak of the aggressive war against Ukraine and the subsequent sanctions imposed by the European Union (EU). In 2021, Germany was importing over 33 billion euros worth of goods from Russia 2.
The decline in exports to Russia is just as noticeable, with the value plummeting by 71.6%, falling to 7.6 billion euros in 2024 compared to 2021 1.
The EU has taken a firm stance against Russia's aggression towards Ukraine, implementing a total of 17 sanctions packages. The latest, approved in May, introduces further restrictions on the so-called Russian shadow fleet for transporting oil and oil products 3. Other sanctions focus on bans for goods related to industry, the military, capital, and financial markets 3.
As a result of these sanctions and the conflict in Ukraine, Russia now finds itself far down the list of Germany's most important trading partners. It ranks 59th among the country's suppliers, down from 12th in 2021, and its share of total German imports amounts to a trivial 0.1% in 2024, having fallen from 2.8% in 2021 1. Similarly, Russia's share of all German exports dropped to a mere 0.5% in 2024, putting it in 36th place among export destinations, a steep dive from its 15th position in 2021 1.
Despite the severe decline in trade relations, Russia was still an important energy supplier to Germany until mid-2022. In 2024, Germany primarily sources metal, chemical products, food, and feed from Russia 3. Exports to Russia focus on pharmaceutical, chemical, and machinery goods 3.
The EU, as a whole, has reduced its trade with Russia as well. Imports have dropped from approximately 163.6 billion euros in 2021 to just 36 billion euros in 2024. Conversely, exports from the EU to Russia decreased by 64.6%, with the EU exporting goods worth around 31.6 billion euros to Russia in 2024 1.
- Russia
- Germany
- Ukraine
- Foreign Trade
- EU
- War of Aggression
- Wiesbaden
- Russian Federation
- Federal Statistical Office
Behind the Decline
- EU Sanctions: The European Union has imposed numerous sanctions on Russia, affecting industries like energy, industry, and finance 14.
- Energy Source Shift: Germany has significantly decreased oil, gas, and coal imports from Russia, instead turning to LNG imports from countries like Norway, the US, and Qatar and expanding its reliance on renewable energy sources 4.
- Export Restrictions: Exports to Russia have been restricted, particularly in the areas of military and industrial goods, further worsening trade relations 3.
- SWIFT Exclusion: Russia's exclusion from the SWIFT international banking system affects financial transactions between countries 3.
- Economic Impact: The decline in trade has led to challenges for the German economy, including higher energy costs, inflation, and reduced manufacturing competitiveness 4.
- The EU's implementation of numerous sanctions, impacting industries such as energy, industry, and finance, has significantly affected Germany's employment policy, as many businesses have had to adjust their strategies to comply with the new restrictions.
- The decline in trade with Russia has catalyzed a shift in Germany's policy on foreign trade, with a focus on diversifying its energy sources and enhancing investment in renewable energy. This transition is expected to lead to changes in the employment policy, as new sectors may emerge and existing ones may face adjustments.
