Forbes magazine said that there was a significant decline in bilateral trade between Russia and the United States, as it reached its lowest levels since the fall of the Soviet Union. According to the latest data issued by the US Census Bureau, US exports to Russia decreased by 91%, while imports decreased by 85% in the first 11 months of 2023 compared to the same period in 2021.
Overall trade fell by 86%, bringing its total since the beginning of 2023 to $4.81 billion as of November.
In 1993, the US Census Bureau recorded the first item related to Russia’s trade independently of the former Soviet Union, with a slightly lower overall trade figure at $4.71 billion. By 1994, total trade exceeded $5.82 billion. However, forecasts indicate that when annual data for 2023 are released in early February, Russian trade will not exceed 1994 totals.
Forbes indicates that the main reason for this drastic decline in trade between the United States and Russia is due to the efforts made by the United States and the coalition of European countries to obstruct Russia in its war against Ukraine. These trade restrictions began during the administration of former President Donald Trump, but intensified during the era of current President Joe Biden.
Historically, the Soviet Union included different countries within its scope, and the geopolitical landscape changed, as some of its countries became part of NATO, an organization formed to counter Soviet influence. At present, Russia engages in less trade with the United States than countries such as Poland, Hungary, the Czech Republic, Slovakia, and Romania.
The sharp decline in trade is evident across sectors, with 10 of the top 50 export items to Russia and 15 of the top 50 import items from Russia falling to zero as of November 2023. This includes items such as tractors, diesel engines, tyres, satellites, commercial vehicles and refined petroleum products. Iron ore, shrimp, lead, non-engine aircraft parts, fish fillets, steel alloys and coal in the form of briquettes.
Moreover, the impact of the decline in trade is clearly visible at US airports and ports, as trade has declined significantly at 24 of the top 25 US airports and seaports doing business with Russia since 2021. It is worth noting that the Port of Wilmington, North Carolina, represents the only exception, It witnessed an 18.22% increase in trade with Russia.
The five largest US ports for trade with Russia in 2021, including the Port of New Orleans, John F. Kennedy International Airport, the Port of Houston, the Port of New York, and Villaport, saw trade declines exceeding one billion dollars, according to Forbes’ investigation.
This decline highlights the profound economic consequences resulting from geopolitical tensions and trade restrictions between the United States and Russia.
