Russia recorded nearly a 20% increase in exports in 2024, according to a study published by the German weekly Der Spiegel, based on research by the Cologne Institute for Economic Research (IW). The analysis indicates that Russia generated approximately USD 330 billion in export revenues last year, despite multiple Western sanctions imposed in response to its war in Ukraine. The report highlights a major shift in Russian trade strategy, with a growing focus on countries in the Global South. Nations such as India and China have become key markets for Russian oil and gas, contributing substantial revenue to the Russian state budget. Trade with Western countries, including Germany, Italy, and the United States, has declined sharply—by as much as 92%—following the sanctions. However, the study notes that Russia has increased exports to other countries, including Hungary (an EU member), Brazil, Turkey, and Israel. Russian authorities have publicly stated that the country has adapted to the sanctions regime by cultivating new trading partners. While the Kremlin has acknowledged the economic strain resulting from sanctions, it has also ramped up its focus on supporting the war economy. President Vladimir Putin has repeatedly emphasized Russia’s commitment to maintaining its military export obligations despite the ongoing conflict in Ukraine. To counter Russia’s export gains and reduce its wartime revenues, the IW recommends stricter measures. One suggestion is to lower the EU’s current price cap on Russian oil, which is set at USD 60 per barrel. EU member states are currently debating a reduction to USD 45 per barrel, while Ukrainian President Volodymyr Zelensky has called for a cap of just USD 30. The IW also advises more aggressive action against the so-called Russian “shadow fleet”—tankers that operate without proper insurance or documentation and are used to transport Russian oil to countries like India, effectively bypassing sanctions. Source: Der Spiegel, IW & CTK