Some 70 percent of the country’s exports are related to energy and mining, while Russia imports roughly 80 percent of manufactured goods, according to the latest figures from the World Trade Organization. About a third of those imports–everything from vehicles to computer equipment–come from Europe.
And with a relatively small manufacturing base, Russia’s economy is also highly vulnerable to canceled orders from U.S. and European customers. Some Russian companies are already feeling the chill of a drop in demand, according to Philip Uglow, chief economist at MNI, based on his firm’s survey this month of 200 large Russian companies.
“What we’ve heard from Russian companies this month is that they’re seeing a big fall in export orders,” he said. “Certainly their seeing some pain for the tension in Ukraine. They probably fear most trade or financial sanctions.”
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