Germany's exports to Russia increased in May despite Western sanctions

Due to sanctions imposed by Western nations on Russia since Moscow invaded Ukraine on February 24, exports from Germany to Russia fell nearly 60% in March and 9.9% in April. However, exports to Russia increased by 29.4% in May compared to the previous month, reaching one billion euros, according to the German Federal Statistical Office.

According to the German Federal Statistical Office, the export of pharmaceutical products has increased the most. It is worth noting that these products are not subject to the sanctions imposed by Western countries. According to the report, the increase is partly due to higher prices. The statisticians intend to release additional information after an evaluation in the coming days, according to the report.

In May compared to April, imports from Russia to Germany decreased by 9.8% to 3.3 billion euros. Notably, raw materials and energy are primarily supplied by Russia. Unexpectedly, German exports decreased overall in May as a result of a decline in EU demand. They totalled 125.8 billion euros, down 0.5% from the previous month, according to the Federal Statistical Office.

On the other hand, imports increased by 2.7%. "In May 2022, the majority of German exports went to the United States," the statisticians concluded. There was an increase in exports of goods of 5.7% over the previous month, totalling 13.4 billion euros.  The figures are released as energy costs rise across Europe as a result of the Russia-Ukraine war, contributing to higher inflation and a negative impact on the trade balance of nations that rely heavily on oil and gas imports to meet their energy needs.

Russia's current account surplus reached its highest level since 1994

In contrast, during the first four months of the year, Russia's current account surplus more than tripled and reached its highest level since at least 1994. High gas prices increased the value of exports and decreased imports as a result of western sanctions, which caused the increase.

Meanwhile, in the first quarter of this year, the UK's current account deficit - a measure of international trade and financial flows - rose to its highest level since records began to be kept in the 1950s. Even though it is primarily a result of the rising cost of fuel imports, many British exporters are also dealing with Brexit-related disruptions caused by border issues and mountains of paperwork.

(Image: AP)