Surprisingly, U.S. trade with Russia grew in March, despite rising tensions and Russia’s annexation of Crimea. According to the Commerce Department, exports of U.S. goods to Russia rose 9% from the prior month, and imports from Russia rose 36%.
The U.S. tends to import Russian oil, metals and fertilizers and export machinery, vehicles, and food. March’s trade increase can largely be attributed to a surge in exports of civilian aircraft and autos.
You might remember this March post about the U.S. imposing financial sanctions and banning export licenses for defense items to Russia. Since then, tensions have continued to escalate. On April 28th, the Bureau of Industry and Security (BIS) expanded the license ban to any high-technology item subject to the Export Administration Regulations that contributes to Russia’s military capabilities. BIS also added 13 companies to the Entity List.
With the recent increase in sanctions, do you think the April U.S.-Russia trade figures will reflect a falling out between the trading partners?
For more information, please read this Wall Street Journal article and Sandler & Travis Trade Advisory Services press release.
