According to the Ministry of Production, Foreign Trade, Investments and Fisheries, from January to December 2021, Ecuadorian non-oil exports to Russia left a balance of $1,000 million, with a growth of 8.7% compared to 2020 ($80 millions more). The main products were bananas, shrimp and natural flowers –the three add up to 93.9% of total non-oil exports to that destination–.

Ecuadorian bananas have Russia as one of their main destinations.

Such figures are now reeling from the consequences of Russia’s invasion of Ukraine, a conflict that has been going on for two weeks and it is not yet known how long it could last, and for which the first nation has received international sanctions in response.

The ambassador of the Russian Federation in Ecuador, Vladimir Sprinchan, said that he understands the concern of florists and banana growers about the effect on trade between the two countries due to the sanctions due to the conflict between that country and Ukraine, which is also a destination for these exports.

“It affects not only the economies of Russia and Ecuador, but the entire world, because in the 21st century most world economies are connected… One sees that partners of Ecuadorian exporters who offer ships, containers, refuse to continue their operation with Ecuador and the same problem appeared with payments for Ecuadorian products”, says Sprinchan.

The ambassador admits that Russia still has to pay for products to Ecuadorian companies, but it is not the fault of Russian consumers, since the channels that were usually used for payments have been affected and mechanisms are currently being sought to allow them to pay for the supply. of Ecuadorian products to Russia.

According to the National Association of Producers and Exporters of Flowers of Ecuador (Expoflores), they alone, until the last week of February, were owed $33 million from customers in Russia and Ukraine.

Sprinchan comments that his country is seeking the best way to counteract the “economic war” it is experiencing, in reference to the economic sanctions imposed by the United States and various European countries on his government.

The Ecuadorian Federation of Exporters (Fedexpor) estimated that before the total closure of trade with Ukraine, the seventeenth destination of Ecuadorian exports, $ 2.4 million will not be exported weekly. Not counting the impacts on shipments to the Russian market, the fourth most important for Ecuador, exacerbated by the devaluation of its currency, the ruble.

In 2021, non-oil exports to Ukraine also grew by 15.3% compared to 2020, generating $124 million.

Even the National Assembly analyzed the repercussions in Ecuador due to the conflict and indicated that the war would be putting $1,200 million for Ecuador at risk.

Another impact is imports, since the agricultural sector could be affected by the lack or increased cost of fertilizers that Ecuador brings from Russia. Although the increase in prices (it tripled) was already seen in 2021.

An analysis by Oikonomics Economic Consulting indicates that Russia represents for Ecuador the origin of 39% of imports of these materials. While there would be no major impact on imports from Ukraine as it is not a significant trading partner. From that country, $2 million worth of chemicals, oils, sugar syrup, alarms and other metal products were imported last year. (I)