Evaluating the Dynamics of Russia-EU Trade

Abstract

The European Union (EU) remains Russia's main trading partner whose share in 2020 accounted for about $192 billion (over 37%) of the country's trade turnover. Russia on the other hand ranks fifth among leading trading partners of the EU (after China, USA, UK, and Switzerland). The emergence and fast spread of the coronavirus pandemic has had a devastating impact on both Russia and the world economy. From imposed restrictions to rising tensions between Russia, European Union, and the United States, these events have largely influenced the internationalization of some Russian small and medium-sized enterprises (SMEs). This chapter therefore seeks to evaluate the trends in EU-Russia trade and identify means by which SMEs can be effectively integrated into the European market. The findings show an unbalanced EU-Russia trade pattern. Also, in integrating SMEs, the Russian Export Center (REC), Russian Agency for Export Credit and Investment Insurance (EXIAR), and the State Specialized Russian Export-Import Bank (EXIMBANK) will be instrumental in this perspective.