Serbian Exports to Russia Fall Steeply

Total Serbian exports to Russia in the first six months of 2015 were 33 per cent lower than the same period last year, according to a report by the Serbian Chamber of the Economy released on Tuesday.

Total exports to Russia in the first six months of this year added up to 332 million dollars, while in the same period in 2014, they amounted to 486 million dollars.

Dejan Delic, from the Chamber of the Economy' s Bilateral Cooperation sector, told BIRN on Tuesday that exchange rate fluctuations and the fall in the value of the Russian rubble were the main reasons for the decline in exports.

"Trade exchange between the two countries in the first half of 2015 has been followed by exchange rate fluctuations and the rubble drop in the period from September 2014 through January 2015. That caused payment uncertainty, difficulty in planning and consequently a significant drop in trade exchange of exports and also imports," said Delic.

The fall in Serbian exports to Russia is surprising because Serbia is among the few countries in the region which have not imposed sanctions against Russia.

In spring 2014 , the conflict between Russia and the West over Ukraine resulted in the introduction of mutual economic sanctions, but Serbia has not followed EU instructions about sanctions although it is involved in the EU accession process.

Last August 22, Prime Minister Aleksandar Vucic said that "Serbia will respect the EU's desire not to give additional subsidies on exports to Russia, but it will not impose sanctions on Russia".

On June 17 this year, the EU extended its economic sanctions on Russia, which will continue at least until the end of January 2016. In response, Russia imposed an embargo on food imports to the EU.