Russian Exports Surge Despite Western Sanctions, Study Finds
Despite the significant economic sanctions imposed by the West, Russia has managed to increase its exports in 2024, according to a recent analysis by the German Institute for Economic Affairs (IW). The report, published in the German news magazine Spiegel, reveals that Russia’s export revenue rose to nearly $330 billion, effectively maintaining a “war chest” for the Russian government.
While Russia’s trade with Western countries, such as Germany, Italy and the US, has decreased by up to 92 percent, the country has seen a significant surge in exports to countries in the Global South, such as China, Brazil and India. These nations have increased their imports from Russia by 67, 98 and 680 percent, respectively. Even countries closely tied to the West, such as Turkey, Israel and Hungary, have increased their purchases from Russia, with the latter country’s imports rising by nearly a third.
The IW Institute has expressed skepticism about a proposal by US Senator Lindsey Graham to impose secondary sanctions on Russia’s trading partners, with tariffs of up to 500 percent. The institute warns that such a move could be met with resistance from the US government, given the “very wavering policy” of US President Donald Trump. The EU is also unlikely to follow suit, as it may lead to a spiral of retaliatory tariffs. Instead, the institute recommends reducing the price ceiling for Russian oil and taking a stronger stance against Moscow’s shadow fleet.