Serbia shifts trade focus, distancing from Russia amid war impacts

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 see this as a sign of Belgrade politically distancing itself from Moscow.

Serbia saw an increase in the value of imports from Russia in 2022, reaching CAD 4 billion, which can be attributed to the signing of a new contract for Russian gas supplies and an increase in raw material prices. In subsequent years, imports have seen regular declines.

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 were significant in exports to Russia. Still, these goods have been redirected to other destinations, indicating that Serbia has found alternative markets, "debunking the thesis of the 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, taking advantage of the preferential export conditions to the Russian market, recalled economist Ivan Nikolić.

Among the top ten exporters from Serbia to Russia in recent years, nine were foreign investors, with eight originating 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.