Germany Sees Suspicious Boom in Exports to Countries Neighbouring Russia: Allegedly Circumventing Sanctions – Media

Countries neighbouring the Russian Federation buy more and more German goods and, probably circumventing Western sanctions, sell them to Moscow.

As Spiegel mentions, in particular, Armenia, has quadrupled its exports to Russia to approximately $2.5 billion within two years.

Besides traditional fruits and nuts, as well as wine and brandy brand "Ararat", Armenia began to export high-tech and industrial goods of all kinds over the last year.

In 2022, Armenia supplied Russian customers with electronic equipment worth $460 million. Equipment sales increased from $14 million to $158 million.

In December, the export revenues of German companies from Armenian businesses were 287% higher than the average for 2018-2020.

Besides Armenia, Kazakhstan has also started buying more German goods. Export revenues of German companies increased by 210% compared to the average for 2018-2020. In Kyrgyzstan, the increase is as much as 1157%.

Changes in trade flows are so large-scale that analysts of the European Bank for Reconstruction speak of the "Eurasian Circumvent".

German business representatives explain the trade boom by other factors.

In particular, many German companies used Russia as a sales hub before the invasion. They shipped these goods to Yerevan and Astana. Since this is no longer possible due to sanctions, deliveries are made directly to these countries.

Also, the number of potential customers is increasing in Armenia and Kazakhstan due to many migrants from Russia.

At the same time, as Spiegel notes, it is unlikely that these reasons can explain such sales of German goods to countries neighbouring the Russian Federation.

On April 10, more than 120 cases of violations of sanctions against the Russian Federation were discovered in Switzerland. However, the Swiss State Secretariat for Economic Affairs has so far only issued two fines.

The EU is working on the eleventh package of sanctions against the Russian Federation, which should be aimed at suppressing attempts to circumvent previously introduced restrictions.