Brazil-Russia trade slows down in 2023 after sharp rise in 2022

Despite the conflict in Ukraine and the embargoes imposed by the United States and the European Union on Russia in 2022, trade between Brazil and the Slavic country reached a record high. Last year, the trade flow, including exports and imports, stood at a record US$ 9.812 billion, representing a 34.7% increase compared to the previous year.

Brazilian exports during this period grew by 24.7%, reaching US$ 1.959 billion. On the other hand, Russian sales increased by 37.8% to US$ 7.853 billion. As a result, Brazil experienced a deficit of US$ 5.894 billion with Russia, making it the second largest deficit in Brazilian foreign trade, only behind the one with the United States at a negative balance of US$ 13.867 billion. These figures are from the Foreign Trade Secretariat (Secex) of the Ministry of Development, Industry, Commerce, and Services (MDIC).

In the first quarter of 2023, although these numbers should not necessarily be projected for the current year, there was a significant drop of 32.8% in Brazilian exports, amounting to only US$ 426 million. Meanwhile, imports of Russian products totaled US$ 1.783 billion, reflecting a 12.8% increase. As a result, the total trade flow reached US$ 2.209 billion, with a slight decline of 0.12%, resulting in a surplus of approximately US$ 1.357 billion in favor of Russia.

See below the volume of goods traded from Jan 2019 to Apr 2023 between Brazil and Russia. The data is from DataLiner.

Brazil-Russia Trade | Jan 2019 – Apr 2023 | WTMT

Source: DataLiner (click here to request a demo)

Among the top five products exported to Russia, there are no industrialized goods, and Russian imports were predominantly focused on agribusiness products with lower added value. Soybeans were the top export item, accounting for 56% of the total volume shipped and generating revenues of US$ 239 million, representing a 38.17% increase compared to the previous year’s first quarter.

Beef followed in second with revenues of $39 million, showing an increase of 11.5% and a 9.0% share. Unroasted coffee experienced a decline of 33%, with revenues of US$36 million and an 8.4% share. Poultry generated US$26 million in revenue, decreasing by 14% with a 6.1% share, while peanuts brought in $21 million, declining by 10% and representing a 4.8% share.

After a sharp growth in 2022, Russian exports of organic fertilizers fell by 13% in the first quarter of this year, with revenue reaching US$ 977 million. This category alone accounted for 55% of the total volume exported by Russia to Brazil. Equally significant were the sales of fuel oils, which experienced a staggering increase of 288%, resulting in total revenues of US$ 600 million and representing around 34% of Russia’s exports.

Other manufactured products showed less relevance, generating US$ 75 million in revenue and accounting for a 4.2% share. Semi-finished products, and ingots, had a revenue of US$ 45 million and a 2.5% share, while synthetic rubbers amounted to US$ 23 million, corresponding to 2.47% of the total trade between Brazil and Russia.

Source: Comex do Brasil

To read the original news report, see: https://comexdobrasil.com/comercio-brasil-russia-inicia-2023-em-desaceleracao-apos-forte-alta-em-2022/

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