German exports to Russia drop 57.5% in March | Investment News

BERLIN (Reuters) – German exports to Russia fell 57.5% to 1.1 billion euros ($1.2 billion) in March due to sanctions imposed after the invasion of Ukraine, the German Federal Statistical Office announced on Thursday.

The decline has downgraded Russia to Germany’s 12th largest export market outside the European Union, down from fifth in February.

Russian troops invaded Ukraine in what Moscow calls a “special military operation” on February 24, prompting the West to impose harsh sanctions. These include export restrictions.

In total, German exports to countries outside the European Union fell by 7.2% to 52.8 billion euros in March compared to February. However, they were 3.2% higher than March 2021.

The United States was still Germany’s main export market, with goods worth 13.5 billion euros shipped in March, up 21% from a year earlier. Goods worth 10.2 billion euros were exported to China, down 1% from a year earlier, while exports to Britain fell 0.3% to 6.4 billion euros.

German trade association BGA said last month that a survey of its members showed most expected an economic slowdown following the conflict in Ukraine, but businesses nonetheless backed government sanctions against Russia.

(Reporting by Rene Wagner; Writing by Maria Sheahan; Editing by Miranda Murray, Robert Birsel)

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James R. Rhodes