Economic Slump in Saxony-Anhalt: Impact of Russia Import Ban
The import of goods from Russia to Saxony-Anhalt has seen a dramatic drop, nearly reaching a standstill in 2023. Data from the Ministry of Economics in Magdeburg reveals a drastic decrease of 99.1%, primarily due to the absence of crude oil and natural gas imports from Russia, following the EU's oil import ban on January 1.
This development has had a considerable impact on Saxony-Anhalt's energy-intensive chemical industry, a vital sector for the region. Although alternative sources for natural gas and crude oil were available, costs soared by 11%. The Ministry of Economics reports that the main supply countries in 2023 were Norway, the United Arab Emirates, and Great Britain.
Saxony-Anhalt continues to retain some imports from Russia. As per the Federal Statistical Office's data up to October 2023, the value of goods imported from Russia was approximately €23 million. The full-year 2022 figure, including oil and gas imports, stood at nearly €3.65 billion. Key imported goods mainly consisted of raw rubber and aluminum products.
The trend of Russian imports to Saxony-Anhalt has experienced a downturn over the years. Ten years ago, the imports were significantly higher, amounting to €6.4 billion. Last year, the figure dipped to almost half of that, at €3.6 billion. Exports to Russia have also seen a substantial decrease. In 2013, exports worth over €432 million were sent to Russia, dropping to €122 million in the first nine months of 2023. Unusually, exports to Russia surpassed imports for the first time in 2023.
The Leibniz Institute for Economic Research (IWH) identified problems in the chemical industry as a significant factor in the more pronounced decline in Saxony-Anhalt's GDP compared to the rest of Germany in September 2023.
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Despite the ban on Russian oil imports in the EU, Saxony-Anhalt still relies on certain important goods from Russia, such as raw rubber and aluminum products. The energy-intensive chemical industry in Saxony-Anhalt, imperative for the region, has been affected by the import ban, although alternative sources for natural gas and crude oil have been sought to mitigate the impact.
Historically, Germany, including Saxony-Anhalt, has been heavily dependent on Russian energy imports, with nearly 55% of Germany's natural gas coming from Russia in 2022[1]. Due to geopolitical tensions and international sanctions, the region has been compelled to diversify its energy sources, transitioning to renewable energy sources like wind power, solar energy, and biomass.
The ban on Russian oil imports into the EU has led to a global energy crisis, impacting Germany and causing significant changes in its trade with Russia, particularly in the chemical industry. Germany has turned to alternative suppliers like Norway and the United States to meet its energy needs[1]. The broader economic shifts in Germany, including Saxony-Anhalt, have affected sectors like manufacturing and logistics, impacting the region's industrial base[1].
[1] Spark, S. (2023, October 22). Economy – Imports Russia, Saxony-Anhalt: Almost come to a standstill. . Retrieved 2023, November 9 from .
