EU Trade Surplus Signals Recovery From Russia Shock

The European Union’s trade balance recorded a surplus of €40.4 billion in the second quarter of 2024, according to Eurostat data. This marks the fourth consecutive quarter with a trade surplus, signaling a recovery from the shocks caused by the war in Ukraine. Following the severing of trade ties with Russia, the EU experienced a trade deficit for over a year. However, other trading partners have stepped in to replace lost Russian supplies, and European exports have also diversified. While some EU goods still reach Russia via third-party countries, European authorities are actively combating this practice due to the risk of secondary sanctions.