Serbia shifts economic ties away from Russia amidst trade decline
Despite the bilateral free trade agreement, Serbia and Russia have never utilized their full potential. Since the beginning of 2024, trade has significantly declined, notes the weekly "Vreme." Some analysts view this as a sign of Belgrade politically distancing itself from Moscow.
In 2022, Serbia saw an increase in the value of imports from Russia, reaching $3.1 billion. This increase can be attributed to signing a new contract for Russian gas supplies and a rise in raw material prices. In subsequent years, imports have seen regular declines.
An ally turns away
Economic experts emphasize that the weakening trade between the countries demonstrates the underutilization of the opportunities provided by free trade agreements and Serbia's gradual distancing from Russia.
Economist Sasza Dziogović pointed out that apples used to hold a significant place in exports to Russia, but these goods have been redirected to other destinations. This indicates that Serbia has found alternative markets, "debunking the thesis of dependence of this important export sector on Russia."
The expert explained that fruits have started to reach markets in the United Kingdom, Portugal, and Saudi Arabia, and the anticipated signing of a free trade agreement with Egypt will open another market for Serbia's goods.
The agreement with Russia was also utilized by foreign investors, who began opening their companies in Serbia to take advantage of the preferential export conditions to the Russian market, recalled economist Ivan Nikolić.
Nine of the top ten exporters from Serbia to Russia in recent years were foreign investors, eight of whom originated from the European Union.
The analyst also pointed out restrictions on imports from Russia. Energy raw materials and defense sector goods overwhelmingly dominate these imports. "This raises the question, does Russia really have nothing to offer Serbia beyond weapons, oil, and gas?" said Nikolić.
