Sanctions Notwithstanding, Trade Flourishing with Russia
Thursday, the WS-J reported that trading in the West with Russia has skyrocketed despite economic sanctions.
The US and the largest nations in the EU, including France and Germany have recorded exports to, and imports from, Russia surging in Y 2017 after 3 years of decline according to the data.
Both are at their highest marks since Y 2014, the year sanctions were imposed after Russia invaded Ukraine and annexed Crimea.
According to the report, Russia emerged from recession to post 1.6% growth in GDP in Y 2017.
In Y 2017, total trade between the EU and Russia rose 17.9% from Y 2016, to $285.8-B and US trade with Russia rose by 12.5%.
The Big Q: How effective sanctions are since in some cases, governments work to circumvent the barriers and rebuild economic ties?
A Key example of how the sanctions’ effectiveness wane over time is that China overtook Germany as Russia’s Top supplier of machinery and capital goods in Y 2016, but then lost its position again a year later.
Investments also show increasing economic links, the paper noted.
German direct investment in Russia surged to $1.08-B in the 1st 3 Q’s of Y 2017 from $274-M in all of Y 2016, according to Bank of Russia data.
France’s investments in Russia rose to $524-M during the same period from $438-M.