Earnings from exports to Russia almost halved

© Hollandse Hoogte / Roger Dohmen Fotografie
In 2022, Dutch export earnings from trade with Russia declined as of the end of February, following Russia’s invasion of Ukraine. The Netherlands generated altogether 1.7 billion euros by exporting goods and services to Russia last year, equivalent to 0.4 percent of gross domestic product (GDP). It was still 0.7 percent in 2021. Last year, these exports accounted for 14.9 thousand full-time jobs in the Netherlands, down from 24 thousand jobs in 2021. This is evident from new figures released by Statistics Netherlands (CBS).

Earnings from exports to Russia amounted to 1.7 billion euros in 2022, a 42-percent decline relative to the previous year, when they stood at 2.9 billion euros. The war in Ukraine has led to a ban on exports of machinery and technologies to Russia, but also of luxury goods such as cars, yachts, jewellery or clothing. Earnings from service exports fell by 48 percent. In addition, earnings from domestic goods exports fell by approximately 42 percent, from re-exports by 30 percent.

Sharpest declines in road transport vehicles and machinery

More than half of the export earnings in trade with Russia can be attributed to exports of Dutch domestic products. The largest product categories are machinery and components, ornamental horticulture, and medicines. Relative to 2021, the sharpest declines occurred in exports of road transport vehicles, machinery and components, medicines, and ornamental horticulture. Other substantial declines were seen in high-performance plastics, ships and boats, and metal waste.

More than a quarter of the export earnings in trade with Russia is on account of services. These are mainly business services, charges for the use of intellectual property and construction services.

Earnings from exports of all these services and of maintenance and repair services dropped sharply as well in 2022.

Higher earnings in exports to Kazakhstan

While exports to Russia generated lower earnings in 2022, export earnings in trade with other countries that have strong ties with Russia as part of the Eurasian Economic Union (EAEU) followed an opposite trend. Exports to all other EAEU countries generated higher earnings in 2022. Belarus was an exception, due to sanctions taken against the country which are similar to those imposed on Russia. In 2022, earnings from exports to Belarus fell by nearly 13 percent relative to the previous year.

Of all EAEU countries, Kazakhstan generated the highest export earnings for the Netherlands, totalling 329 million euros in 2022; an increase of almost 49 percent relative to 2021, due to strongly growing domestic exports and re-exports to this country.

In 2022, export earnings were also up in trade with Armenia, by 70 percent (+20 million euros), as well as with Kyrgyz Republic (+17 million euros); nearly a threefold increase in both cases. Another rise was seen in earnings from exports to Turkey and Georgia, (neither are members of the EAEU) in 2022. Dutch exports to Turkey generated 3.5 billion euros in 2022, up from 2.8 billion in 2021. Exports to Georgia accounted for 95 million euros, against 75 million in 2021.

Sources