Trade between the EU and Russia has been severely impacted since the onset of Russia's full-scale invasion of Ukraine in 2022.
The European Union has implemented various restrictions on the import and export of goods, resulting in a 58% decrease in exports to Russia and an 86% drop in imports from Russia from the first quarter of 2022 to the third quarter of 2024.
Recent data from Eurostat indicates that the EU's trade balance deficit with Russia stands at €0.6 billion, marking a significant decline from a peak of €46.0 billion in the second quarter of 2022.
The primary goods imported by the EU from Russia include nickel, oil, natural gas, fertilizers, iron, and steel.
Comparing the third quarter of 2022 to the third quarter of 2024, the most significant declines were observed in nickel and oil, which fell by 21 and 17 percentage points, respectively.
To offset this, the EU has begun sourcing nickel from other countries, including the USA, Norway, and the UK.
Additionally, oil imports have increasingly been replaced by supplies from the USA, Kazakhstan, Norway, and Saudi Arabia.
During the same period, fertilizer imports increased by 13 percentage points, while the share of natural gas, pig iron, and steel rose by 2 and 3 percentage points, respectively.
Are sanctions against Russia effective?
The EU has signed new energy agreements, including the REPowerEU plan, and imposed restrictions on certain key goods to reduce dependency on Russia.
However, while the EU is working to expand the Southern Gas Corridor to import energy from alternative sources, reports suggest that Russia still finds ways to reach the EU market.
As noted in an analytical report by Chatham House, researcher Armida van Riet stated, "Russian gas is being 'laundered' through Azerbaijan and Turkey to meet high European demand."
According to the report, European Commission President Ursula von der Leyen has made gas import deals with Azerbaijan, despite part of the infrastructure for transporting this gas being owned by Lukoil, a Russian energy company under US sanctions.
However, the European Commission denies that the deals with Azerbaijan create a "backdoor" for the indirect entry of Russian gas into the continent.