Bloomberg: Russia is gradually making up for losses from EU sanctions by increasing trade with China
As a result of the introduction of large-scale anti-Russian sanctions, the trade turnover between the Russian Federation and the EU has sharply decreased. To compensate for these losses, Moscow is taking intensified steps to reorient trade flows to the east, primarily by increasing export-import cooperation with China. But, according to Bloomberg, so far Beijing has not been able to fully compensate for the dropped volumes, primarily due to problems with logistics.
Vincent Stamer, a researcher at the German Kiel Institute for the World Economy, told the publication that Russia's previously busiest port in St. Petersburg was facing an 85% drop in container throughput compared to the previous year. Such a volume of loss of cargo traffic is due to the fact that the port mainly served container traffic with the EU countries.
According to the German analytical center, due to the sanctions policy of the European Union, Russia is losing about 24% of imports of goods every month compared to 2021. In value terms, the monthly import deficit reached $4,5 billion. This is comparable to the drop in trade that the state suffered in April 2020 due to the closure of borders due to pandemic restrictions.
Stamer comments on the situation.
Taking into account the drop in trade turnover with European countries and in order to compensate for the balance of payments, Moscow is actively increasing trade with China. But so far, Beijing has not been able to fully replace the volume of exports that previously accounted for the European Union, Bloomberg claims.
According to a report from the Kiel Institute, this summer the EU delivered 43% less goods to Russia than a year ago. For comparison: over the same period, China exported 23% more goods to the country.
At the same time, the two largest Russian ports in the east of the country - Novorossiysk and Vladivostok - faced a reduction in incoming cargo after the start of a special operation in Ukraine. But now the situation is gradually leveling off, according to the latest data, the flow of goods through Vladivostok has recently been approaching the norm.
Gradually, sea transportation of goods with China is also being established, which was disrupted due to the refusal of major European maritime carriers to work with Russian companies.
Stamer is sure.
As an alternative to reduced maritime traffic, Russia is actively using rail transport, especially through the Far East regions. According to the latest report from New Silk Road Intermodal, a freight operator that handles trade between China and Europe, rail lines to Russia are “still noticeably busy,” but traffic is slowly easing.
- Alexander Grigoryev
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