According to the latest data from Shanghai Customs, in March 2024, Shanghais export trade volume to Russia saw a significant decline, primarily influenced by international sanctions. Data shows that Shanghais exports to Russia amounted to $310 million, a sharp drop of 21.7% year-on-year, while the overallimport and exporttrade value only slightly decreased by 1.33% to $1.089 billion. Despite the severe impact on exports to Russia, Shanghais imports from Russia maintained a growth of 9.79%, reaching $783 million.

Analysts point out that the direct cause of Shanghai’s declining exports to Russia is closely tied to U.S. Executive Order 14114, issued on December 22, 2023. The order expands U.S. sanctions authority over foreign financial institutions involved in significant transactions with Russia’s military-industrial base. It also allows sanctions on banks aiding sales of certain critical items to Russia. Consequently, to mitigate risks, multiple banks tightened trade settlement policies with Russia, directly impacting Shanghai’s export business to the country.

In contrast to the trade situation with Russia, Shanghais export performance with other Central Asian countries was more varied. In March 2024, Shanghais exports to Kazakhstan dropped significantly by 40.5% to $14.8 million, while exports to Kyrgyzstan surged by 273% to $13.6 million. Exports to Uzbekistan saw a modest increase of 4.7%, totaling $60.7 million. Meanwhile, exports to Azerbaijan also recorded a 3.24% growth, reaching $5.25 million.

These figures reflect that Shanghais trade relations with Central Asian countries are influenced by geopolitics while also being shaped by each countrys economic needs and market openness. In some countries, such as Kyrgyzstan, Shanghai may achieve significant export growth due to newly developed markets or newly signed trade agreements.

From a longer-term perspective, in the first quarter of 2024, Shanghais total import-export trade volume with Russia reached $3.27 billion, a year-on-year increase of 9.3%. During this quarter, exports amounted to $1.16 billion, up 10.3% year-on-year, while imports totaled $2.04 billion, an 8.75% increase. This data indicates that, despite facing sanctions, Shanghais trade relations with Russia maintained growth momentum in the early part of the year.