Brexit and Trade and Economic Relations between Russia and the UK

Abstract

The UK’s exit from the EU can aff ect Russia primarily through an increase in volatility in the world markets and the consequent reduction in mediumterm oil prices. Impacting Russia directly through trade is less likely. First, the United Kingdom accounts for about 2% of Russia’ trade turnover. Second, Russia’s exports are mainly raw fuel (84% in 2015), which can be easily redirected to other markets; in addition, about half of these exports are gas trading. The structure of imports from UK is very similar to that from other EU countries. The impact on Russia through trade in services seems more likely, as the UK’s share in Russia’s services turnover is about 6%.