U.S. trade in goods and services with Russia totaled $34.9 billion in 2019. Exports were $10.9 billion; Imports amounted to $24.0 billion. The U.S. trade deficit for goods and services with Russia was $13.1 billion in 2019. The U.S. trade deficit with Russia was $16.5 billion in 2019, an increase of 16.1% ($2.3 billion) over 2018. Since 1997, the EU`s political and economic relations with Russia have been based on a bilateral Partnership and Cooperation Agreement (APC). The trade components of the agreement aim to promote trade and investment and to establish mutually beneficial economic relations between the EU and Russia. Since 2014, the illegal annexation of Crimea and the conflict in eastern Ukraine have seriously undermined bilateral political dialogue. As a result, some of the political dialogues and cooperation mechanisms, including in the trade field, have been suspended. By signing the directive, the Russian Federation approves the draft interim agreement (hereafter referred to as the agreement) that will lead to the creation of a free trade area between the Eurasian Economic Union (EAEU) and its Member States and the Islamic Republic of Iran.
The draft agreement was ready to comply with the decision taken by the Eurasian Higher Economic Council of 26 December 2016 to enter into talks with Iran on the conclusion of an interim agreement leading to the creation of a free trade area and was approved at the Council of the Eurasian Economic Commission on 7 March 2017. Since 2012, when Russia joined the WTO, trade relations between the EU and Russia have also been marked by multilateral WTO rules. The agreement provides for the creation of a free trade area for a limited range of goods between the EAEU and Iran. Russia is currently our 26th largest trading partner with a total of $28.0 billion (two to two) merchandise trade in 2019. Exports of goods amounted to US$5.8 billion; Imports of goods amounted to $22.3 billion. The U.S. trade deficit with Russia was $16.5 billion in 2019. The United States has an estimated $3.4 billion trade surplus with Russia in 2019, up 6.3% from 2018. In 2010, Russia established a customs union with Kazakhstan and Belarus. This customs union became the Eurasian Economic Union (EAEU) in 2015.
Armenia and Kyrgyzstan joined the EAEU the same year. The EAEU has legal jurisdiction in many trade-related policy areas, such as customs, competition, trade defence and industrial products regulation, intellectual property rights and foreign trade policy. A third factor affecting trade relations with Russia is that of political measures to limit trade, i.e. sanctions. In July 2014, in response to Russia`s responsibility for the events in Ukraine, the EU adopted economic sanctions against Russia, which target four sectors: access to finance, weapons, dual-use goods and specific oil extraction and exploration technologies. For more information on these measures, click here. The European Union and Russia have an important bilateral trade relationship. Russia is the EU`s fifth largest trading partner and the EU is Russia`s largest trading partner.
As has already been pointed out, bilateral trade flows have fluctuated sharply in recent years. A second factor is the import substitution policy, which Russia has been implementing gradually since 2012 and which largely coincides with Russia`s accession to the WTO.