Page 59 - RusRPTNov23

Eurostat data shows that, in 2022, the rising exports from Europe to Russia’s neighbours included several distinct types of goods: for example, telecoms equipment, microelectronics, transport technology, and electronic equipment for data processing (computers, servers, hard disks, smartphones, computer peripherals).
The fact that Russia’s neighbours have increased imports of sanctioned goods from Europe indicates that Russia is bypassing EU restrictions, the European Bank for Reconstruction and Development (EBRD) wrote in a February report looking at import flows from Armenia, Kazakhstan, Georgia and Kyrgyzstan.
However, the EBRD authors pointed out that these trade volumes replace only about 5% of the imports Russia lost because of sanctions. The Bank of Finland has reached a similar conclusion: while re-routed goods have gone some way to mitigating the effect of Western sanctions, Russia has still not replaced all lost volumes in this fashion.
Some European countries have restructured their trade flows more than others since the imposition of sanctions on Russia, according to Robin Brooks, chief economist at the Institute of International Finance. Primarily, these are Latvia, Lithuania, Estonia and Poland, which simultaneously reduced exports to Russia and exported more to Central Asia. “It is obvious that businesses are looking for ways to deliver their products to Russian customers. If direct exports are difficult, it chooses indirect routes,” wrote Brooks.
Europe's dependence on Russia is hidden, not solved. Supplies via third countries hide Europe's true dependence on Russian raw materials, FT reported. Swiss giant Glencore shipped thousands of tonnes of Russian copper through Türkiye to Italy in July this year. The report says that the London-listed oil and metals trader purchased at least 5,000 tonnes of copper sheet produced by Russia's Ural Mining and Metallurgical Company (UMMC).
59 RUSSIA Country Report November 2023 www.intellinews.com