russia's neighboring countries buy many times more German goods — Germany suspects sanctions circumvention

Countries bordering russia have started buying more and more German goods. Der Spiegel suggests that these goods are then redirected to russia to circumvent sanctions.

Source. This was reported by Yevropeiska Pravda with reference to the German edition.

For example, Armenia has increased its exports to Russia by 4 times in two years – to about $2.5 billion.

In addition to traditional fruits and nuts, as well as wine and cognac of the Ararat brand, over the past year, Armenia has begun exporting high-tech and industrial goods of all kinds.

In 2022, Armenia supplied $460 million worth of electronic equipment to russian customers. Sales of equipment increased from $14 million to $158 million.

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

In addition to 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 was as much as 1157%.

The changes in trade flows are so large-scale that analysts at the European Bank for Reconstruction (EBRD) are talking about a "Eurasian bypass."

German business representatives note that the trade boom can be explained by other factors.

In particular, before the invasion, many German companies used russia as a distribution centre, from where they delivered goods to Yerevan and Astana. Since this is no longer possible due to the sanctions, deliveries are made directly to these countries.

The number of potential customers in Armenia and Kazakhstan is also increasing due to the large number of migrants from russia.

Background. As reported, a British company has smuggled $1.2 billion worth of electronics to russia to circumvent the sanctions.