Korea's exports to Russia have halved as Western countries tightened sanctions against Russia after the outbreak of war in Ukraine last February, but shipments to other former Soviet republics have soared, Chosun.com reported.
According to the Korea International Trade Association last week, the total value of goods exported to Russia was $514.18 million in February 2023, down 44.8% from a year earlier.
At the same time, exports to former Soviet countries such as Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan and Uzbekistan have mysteriously increased, especially for consumer goods such as smartphones, noodles and shampoo.
Exports to Kyrgyzstan in February 2023 amounted to $71.80 million. This is 6 times more than a year earlier. Only $10 million worth of goods were exported to the country every month until last February, but shipments suddenly jumped to $29.71 million in July and to $63.85 million in October 2022.
For example, smartphone exports jumped a whopping 294 times, while toothpaste grew 6.6 times.
During the same period, exports to Georgia and Kazakhstan also doubled, and to Azerbaijan and Uzbekistan increased by 87% and 50%, respectively.
Industry insiders suggest that a significant amount of exports to neighboring countries are directed to Russia. Western countries such as the EU and the US have tightened sanctions against Russia since the 2022 invasion of Ukraine, but have taken no action against other post-Soviet states.
"It's difficult to determine the exact amount of Korean goods that enter Russia through its neighbors, but the sudden increase may indicate that a significant portion of them enter Russia in a roundabout way," said a senior trade official.
CentralasianLIGHT.org
April 17, 2023