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years ago, but they will also surpass this milestone," Putin stressed. The Russian leader added that over the past year, the volume of mutual trade has grown by more than 30%. According to him, additional opportunities for fulfilling the potential of the economies of the two countries are provided by interlinking of the Eurasian Economic Union and the Belt and Road Initiative of the Chinese President.
The trade turnover between Russia and China surged by 25.9% y/y to more than $33.68bn in January - February 2023, the Main Customs Administration of China said on March 6. According to released data, the Chinese exports to Russia gained 19.8% and totalled about $15.03bn during two months. Imports of Russian goods and services soared by 31.3% to about $18.65bn. Crude oil, natural gas and coal account for the bulk of the value of goods imported by China from Russia. Copper and copper ore, timber and seafood are among other key items of import from Russia. China is exporting a wide range of products to Russia, with a significant portion composed of smartphones, industrial and specialized equipment, toys, footwear, motor vehicles, air conditioners and computers.
Russia and China's trade turnover is expected to reach $215-220bn by the end of 2023, according to Alexey Maslov, director of the Institute of Asian and African Countries at Moscow State University. This growth is due in part to Western and Japanese companies withdrawing from the Russian market, leading to an increase in trade with China. Russia has increased its oil and gas supplies to China. Although China had hoped to shift to alternative energy sources, it has proven more expensive than traditional energy. As a result, the share of water, solar, and other renewable energy sources remains lower than traditional energy. It was previously estimated that Russia's trade with China would reach $200bn by 2024, but the volume had already reached $194bn by the end of 2022.
The trade turnover between Russia and the European Union at the end of 2022 reached a maximum in eight years, while the import of goods from Russia was at a historical maximum, RIA Novosti calculated based on Eurostat data. The import of goods from Russia to the European Union increased by a quarter last year and reached 203.4bn euros, which is only 230mn less than the historical maximum of 2012 (€203.6bn). At the same time, exports from the EU to Russia fell by 38.1% to the lowest level since 2005 of €55.2bn.
However, such a decrease in Russia's imports of goods from the EU did not prevent it from reaching the highest level of trade since 2014: it grew by 2.3% over the year to €258.6bn. As a result, the EU's deficit in trade with Russia at the end of the year was at the level of a record €148.2bn, which is twice the figure a year earlier.
After the start of the special operation in Ukraine, the EU countries have already adopted ten packages of sanctions against Russia. In total, taking into account the new restrictions, the EU imposed sanctions against almost half (49%) of exports to Russia, according to 2021 data.
87 RUSSIA Country Report Russia April 2023 www.intellinews.com