Russian boycott barely affected Dutch exports

Russian boycott barely affected Dutch exports

Only 0.1 percent of total Dutch exports of goods is affected by the Russian boycott of agricultural products, but the boycott predominantly concerns exports of products made in the Netherlands, which have the highest profit margins, according to figures released by Statistics Netherlands.

The Netherlands exported nearly 7 billion euros worth of goods to Russia in 2013, i.e. less than 2 percent of total Dutch exports (433 billion euros). Russia occupies eleventh place on the list of important export destinations.

The value of goods affected by the import ban amounted to 527 million euros in 2013, i.e. 0.1 percent of total exports at the time. Half of this amount (257 million euros) concerns dairy products. The Russian share in products subject to the boycott is also nearly 2 percent. Dutch exports to Russia during the first six months of 2014 were already 7 percent down from the same period last year.

Considerable part of Dutch goods exported to Russia manufactured domestically
No less than 91 percent of goods affected by the Russian import ban are manufactured in the Netherlands and export products made in the Netherlands have the highest profit margins. Only 60 percent of total Dutch exports to Russia concerns goods manufactured in the Netherlands. The remainder are re-exports: goods not manufactured in the Netherlands, but imported and subsequently exported without being modified in any significant way. Re-exported products have low profit margins. If re-exports are not taken into account, the share of goods affected by the Russian import ban increases from 0.1 to 0.2 percent.

Baltic states most severely affected
In 2013, three EU countries, i.e. Germany (36 billion euros), Italy (11 billion euros) and Poland (8 billion euros) reported a higher export value than the Netherlands. Relative to total exports, the Baltic states and Finland accounted for the highest exports to Russia, which is not surprising given their geographical location.

Due to the import ban on agricultural products, Lithuania, Poland, the Netherlands, Germany and Spain are hit hardest. If the volume of exports of domestically manufactured products is taken into account, Lithuania is the country that suffers most of all EU countries. Approximately 3.5 percent of Lithuania’s export is directly hit by the Russian import ban.

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