Russia’s Top Trading Partners

by Flagpictures.org

by Flagpictures.org

Officially named the Russian Federation, Russia is the world’s largest country in terms of geographic area. It shares land or maritime borders with 16 other European or Asian countries.

Russia shipped US$357.1 billion worth of products around the globe in 2017. That figure represents roughly 2.2% of overall global exports estimated at $15.952 trillion one year earlier in 2016.

Well over half (54.1%) of Russian exports by value were delivered to European countries while over a third (36.7%) were sold to Asian importers. Russia shipped another 4% worth of goods to African nations with 3.6% going to North America.

Russia’s Top Trading Partners

Top 15

Below is a list showcasing 15 of Russia’s top trading partners in terms of export sales, revealing which countries imported the most Russian shipments by dollar value during 2017. Also shown is each import country’s percentage consumption of total Russian exports.

  1. China: US$38.9 billion (10.9% of total Russian exports)
  2. Netherlands: $35.6 billion (10%)
  3. Germany: $25.7 billion (7.2%)
  4. Belarus: $18.4 billion (5.2%)
  5. Turkey: $18.2 billion (5.1%)
  6. Italy: $13.8 billion (3.9%)
  7. South Korea: $12.3 billion (3.5%)
  8. Kazakhstan: $12.3 billion (3.5%)
  9. Poland: $11.6 billion (3.2%)
  10. United States: $10.7 billion (3%)
  11. Japan: $10.5 billion (2.9%)
  12. United Kingdom: $8.7 billion (2.4%)
  13. Finland: $8.6 billion (2.4%)
  14. Ukraine: $7.9 billion (2.2%)
  15. Belgium: $6.8 billion (1.9%)

Some two-thirds (67.3%) of Russian exports in 2017 were delivered to the above 15 trade partners.

Increasing their import purchases from Russia at the fastest pace from 2016 to 2017 were: China (up by 38.9%), Turkey (up by 33%), Finland (up by 32.2%), Belarus (up by 31.1%) and Kazakhstan (up by 30.7%).

The most modest increases in consumption of Russian exports year over year were posted by Japan (up by 11.9%) and the United States (up by 13.9%).

Deficits

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export countrydoesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

Russia incurred the highest trade deficits with the following countries:

  1. China: -US$9.1 billion (country-specific trade deficit in 2017)
  2. France: -$3.7 billion
  3. United States: -$1.9 billion
  4. Indonesia: -$1.7 billion
  5. Vietnam: -$1.4 billion
  6. Thailand: -$1.2 billion
  7. Brazil: -$1.2 billion
  8. Ecuador: -$1.1 billion
  9. Malaysia: -$944.3 million
  10. Spain: -$912.6 million

Among Russia’s trading partners that cause the greatest negative trade balances, Russian deficits with Malaysia (up 306.7%), Thailand (up 126.7%) and Spain (up 75.3%) grew at the fastest pace from 2016 to 2017.

These cashflow deficiencies clearly indicate Russia’s competitive disadvantages with the above countries, but also represent key opportunities for Russia to develop country-specific strategies to strengthen its overall position in international trade.

Surpluses

Overall Russia generated a $130.1 billion trade surplus during 2017–a 26% uptick from the $103.2 billion surplus for 2016.

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

Russia incurred the highest trade surpluses with the following countries:

  1. Netherlands: US$31.7 billion (country-specific trade surplus in 2017)
  2. Turkey: $14.8 billion
  3. Kazakhstan: $7.4 billion
  4. Poland: $6.7 billion
  5. Belarus: $6.7 billion
  6. Egypt: $5.7 billion
  7. South Korea: $5.4 billion
  8. Finland: $4.9 billion
  9. United Kingdom: $4.7 billion
  10. Algeria: $4.6 billion

Among Russia’s trading partners that generate the greatest positive trade balances, Russian surpluses with Egypt (up 67.6%), Belarus (up 43.3%) and United Kingdom (up 31.8%) grew at the fastest pace from 2016 to 2017.

These positive cashflow streams clearly indicate Russia’s competitive advantages with the above countries, but also represent key opportunities for Russia to develop country-specific strategies to optimize its overall position in international trade.

Companies

Companies Servicing Russian Trading Partners

Russian Export Companies

Twenty-eight Russian corporations rank among Forbes Global 2000. The following companies are selected examples of leading companies headquartered in Russia:

  • Gazprom (oil, gas)
  • Magnitogorsk Iron & Steel (iron, steel)
  • Mechel (iron, steel)
  • Severstal (iron, steel)
  • Sistema (telecommunications)
  • Surgutneftegas (oil, gas)

According to the Russian Exporters Database provided by the Ministry of Economic Development of the Russian Federation, the following are also examples of established companies that ship products from Russia to its trading partners around the globe. Shown within parenthesis is the product category that the Russian business specializes in.

  • ALROSA (diamonds, jewelry)
  • Finco LLC (drones for aerial photos, video monitoring)
  • FPK Saturn LLC (copper, zinc, aluminum, tin)
  • GUP Komdragmetall RSJA (gold)
  • JSC Mir Upakovki (plastic packaging)
  • OJSC TAIF-NK (refined petroleum oils)
  • Omsky Zavod Trubnoy Izolyatsy (tubes, pipes, fittings)
  • Souz Co Ltd (fertilizers, chemicals)
  • Soyuz Agro, LLC (wheat, barley, flax)
  • SpecPromTech (iron, steel, other metals)


 
See also Russia’s Top 10 Imports, Top Russian Trade Balances and Highest Value Russian Import Products

Research Sources:
The World Factbook, Field Listing: Imports – Commodities, Central Intelligence Agency. Accessed on March 4, 2018

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on March 4, 2018

Investopedia, Net Importer Definition. Accessed on March 4, 2018

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on March 4, 2018

Integrated Foreign Economic Information Portal, Russian Exporters Database. Accessed on November 2, 2015