Hardly any operations in St. Petersburg: sanctions lead to clear cuts at Russian ports

Last year, the EU was Russia’s most important trading partner. That’s long gone. The sanctions are now having dramatic consequences at the two important ports of St. Petersburg and Novorossiysk.

According to figures from the Kiel Institute for the World Economy (IfW), the handling of goods in Russian ports has collapsed, in some cases significantly. The port of St. Petersburg, formerly Russia’s largest container port and an important transhipment point for trade with Europe, reached less than ten percent of the previous year’s volume in October, as reported by the IfW.

The Black Sea port of Novorossiysk also recorded a decline of around 50 percent. The port of Vladivostok, which is important for handling Asian trade, has reached the turnover volume of the previous year, but the collapse in trade between Europe and Russia cannot be compensated for there.

The European Union was still Russia’s most important trading partner in the summer of 2021, and now China has taken over this top position. According to the IfW Kiel, the EU exports 43 percent fewer goods to Russia than in the previous year, and China 23 percent more. However, the increase in exports from China to Russia lost momentum in September.

“China’s exporters have so far not been able to compensate for the damage caused by the sanctions and Russia’s efforts to replace falling imports from Europe are becoming increasingly difficult,” said the head of the institute’s own Kiel Trade Indicators, Vincent Stamer.

According to the latest Kiel Trade Indicator, Germany exported 0.9 percent less to Russia in October and imported 0.2 percent less goods from there than in the previous month. For the EU, exports increased by 1.0 percent and imports stagnated. For the USA, the IfW Kiel records a minus of 2.7 percent in exports and also stagnation in imports.

China’s exports grew by 10.1 percent and imports by 0.9 percent. Overall, all Russian exports fell by 2.6 percent, all imports fell by 0.4 percent. According to IfW observations, container ship traffic jams around the world continue to show clear signs of relaxation at a high level. Currently, ten percent of all goods shipped worldwide are still stuck in traffic.