ATLANTA — Russia and Ukraine aren't among America's top trade partners. But experts say Russia's invasion could still have broad ripple effects on the economy, according to reporting from our news partner the Atlanta Business Chronicle.
How Georgia stacks up for exports
According to an analysis of federal trade data from the U.S. Census Bureau, Russia accounted for just 0.3% of total U.S. exports in 2021 while Ukraine totaled 0.1%.
Georgia exported about $146 million worth of goods to Russia in 2021, a significant increase from nearly $73 million in 2020, according to federal data. Conversely, the state sent nearly $200 million in exports to Ukraine in 2021, up from more than $132 million in 2020.
The national picture for exports to Russia and Ukraine
American companies exported about $6.4 billion worth of goods to Russia in 2021, up substantially from $4.9 billion in 2020 but still a far cry from $11.4 billion in 2013.
American companies exported about $2.5 billion in goods to Ukraine in 2021, up from the $1.9 billion in 2020 and roughly the same as in 2018 and 2019, according to trade data collected by the Census Bureau. To put those totals into perspective, the U.S. had $1.7 trillion in total exports in 2021.
Illinois exported the most goods to Russia in 2021, with a value of $662 million, according to federal data, or about 10.4% of America's exports to the nation.
Meanwhile, West Virginia led states in exports to Ukraine in 2021, with $371 million, or about 14.7% of total U.S. exports to the country. New Jersey exported about $332 million in goods to Ukraine in 2021, or about 13%, while California came in third at $252 million, or about 10%, according to federal data.
Industry insights
The sanctions posed by the U.S. and other nations on Russia represent another major wrinkle in the effects of the conflict on trade.
One of the sanctions levied against Russia is a prohibition on exporting high-tech goods to Russia if they include American components, including software, according to Doug Rediker, a nonresident senior fellow in the global economy and development program at the Brookings Institution.
“What that really means is that anything high-tech that has a chip in it from anywhere in the world is subject to enormous restrictions on whether it could be imported into Russia,” Rediker said in a Brookings Twitter Spaces event Tuesday.
Technology is one of the leading export categories to Russia.
KC Mathews, chief investment officer at UMB Bank, said aviation equipment and vehicles, along with vehicle parts, make up a significant portion of exports to Russia — creating the potential for an outsized effect on businesses focused on those sectors.
“Don’t get me wrong. If you are in the aviation industries, it could have a negative impact on your business, and you could feel the pain,” Matthews said. “But on a macro basis, it’s negligible.”
To click through interactive data, tap here.