Tensions are flaring between Russia and Ukraine, as the former invaded the disputed region of Crimea. Russia has now issued an ultimatum telling Ukrainian forces in the region to surrender by 12 a.m. ET.
It’s unquestionable that this conflict will have more of an impact on Ukraine. Besides the dependence on Russia for natural gas and Russia’s role in helping Ukraine meet its debt obligations, there’s trade to think of too.
Bloomberg LP chief economist Michael McDonough tweeted this chart that shows that Ukraine depends on Russia for about 30% of its total imports. And over 25% of Ukraine’s exports are consumed by Russia.
Meanwhile, Russia only derives 5% of its imports from Ukraine, and 6% of Russia’s exports are consumed by Ukraine.
This chart from McDonough shows that Ukraine’s trade activity is more dependent on the Commonwealth of Independent States (made up of former Soviet Republics) than the EU: