The paradox of sanctions: Trade continues to flourish, but the Germans pay the Russians more for less goods

Germany, like the rest of the European Union, advocated for restrictions on the import of Russian goods after the start of the Russian invasion of Ukraine. However, the rise in the prices of gas and other fuels or energy raw materials caused this effort to be largely wasted, Reuters wrote with reference to the Federal Statistical Office.

Imports of oil and natural gas increased by 1.6 percent year-on-year in July to 1.4 billion euros, i.e. 34.4 billion CZK, although less was physically imported.

Germans spent half as much on Russian coal this July as compared to last July (0.3 billion euros) and on coke and oil products almost three quarters more (0.5 billion euros).

German customers wanted to buy gas through the closed Nord Stream 1

Economic

The Germans themselves collected half less for their exports to Russia this July than in the same month of the previous year, the value of exports to Russia decreased by 56.8 percent year-on-year in July.

Germans also buy precious metals or seeds

The balance of the trade balance between Germany and Russia, i.e. the difference between exports and imports, is not increasing to the detriment of the Federal Republic, which is the largest economy in the EU, just because of the rise in the prices of energy commodities.

According to the Russian trade representative in Germany, Andrei Sobolyev, German interest in Russian gold, silver and other precious metals is also growing significantly. Soboljev also registers an increased demand for pharmaceutical products, agricultural products and fruit.

More information about the war in Ukraine

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