Bilateral economic relations with Eastern Europe and Central Asia
The region Eastern Europe and Central Asia comprises the Russian Federation, the six Eastern Partnership states Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, and the five Central Asian states Kazakhstan, Kyrgyz Republic, Uzbekistan, Turkmenistan and Tajikistan. EU Association and Free Trade Agreements are in force with three of these states - Ukraine, Moldova and Georgia. Ukraine and Moldova have been candidates for EU accession since June, 2022, and the opening of accession negotiations with Ukraine and Moldova was decided by the European Council in December, 2023, when Georgia was given an accession perspective as well. Accession negotiations were commenced with Ukraine and Moldova in June, 2024, while negotiations with Georgia were put on hold for the time being. Georgia’s government decided to suspend the EU accession process until 2028. Five states belong to the Eurasian Economic Union EEU - the Russian Federation, Belarus, Kazakhstan, Armenia and the Kyrgyz Republic.
As of 2014, the EU imposed restrictive measures vis-à-vis the Russian Federation in response to the annexation of the Ukrainian peninsula Crimea and support for pro-Russian rebels in Eastern Ukraine. These measures comprise economic sanctions.
Since 25 February, 2022, several packages of restrictive measures have been imposed in reaction to the war of aggression of Russia against Ukraine. They comprise, inter alia, individual restrictive measures (asset freezes and travel restrictions) against an additional considerable number of people and entities as well as extensive economic and finance sanctions.
Sanctions have been imposed against Belarus in the wake of 2020 presidential elections and have since been expanded because of Belarus’ role in Russia’s invasion of Ukraine.
Austria's economic relations with the region
In economic terms, most important countries of the region for Austria are Ukraine and Kazakhstan.
Ukraine has traditionally been Austria's second most important trading partner in the region, with exports reaching 665.6 million Euros (2024) and imports amounting to 810.2 million Euros (2024) with a slight rise in exports by +8.1 percent and a moderate decline in imports by -12.8 percent. In the first trimester (January to April) of 2025, Austria’s exports rose by +11.9 percent to 242 million Euros, while imports decreased by -20.7 percent to 262.8 million Euros.
Before Russia’s war, Austria ranked sixth among foreign investors in Ukraine. Most of the some 200 Austrian companies engaged in Ukraine have maintained their activities in the country, notwithstanding challenging conditions. Recovery and reconstruction hold potential for Austrian companies.
Up to its war of aggression against Ukraine, the Russian Federation constituted an important marketplace for Austria's economy, with exports amounting to nearly 2 billion Euros (2021) and as much as nearly 3.5 billion Euros in 2013. According to data for 2024 by Statistik Austria, exports shrank by -23.5 percent to 992.1 million Euros, while imports declined by -40.7 percent to 2.4 billion Euros. Traditionally, natural gas accounted for over 90 percent of imports from the Russian Federation. At the end of 2024, transit of Russian natural gas via Ukraine was terminated. In the first trimester (January to April) of 2025, non-ferrous metals accounted for 41.2 percent of Austria’s imports from the Russian Federation, iron and steel for 15.8 percent; coal, coke and briquettes for 14.3 percent. Nearly 55 percent of Austria’s exports to Russia are medicinal and pharmaceutical products.
With an import share of 1.3 percent, the Russian Federation ranked 18th among Austria’s import source countries in 2024, after 11th rank the year before and sixth in 2022. In the first trimester of 2025 (January to April), import share dropped to 0.1 percent - 69th rank only. Among Austria’s export destinations, Russia ranked 29th in 2024. In the first trimester of 2025, 30th. (Between 2006 and 2014, Russia always ranked 10th or 11th).
Before the war, some 650 Austrian enterprises were present in Russia. About half of them have left since.
In Central Asia, Kazakhstan is Austria's most important trading partner. The country is Austria’s top supplier of crude oil. Statistik Austria data show a rise in imports by +46 percent to 2.55 billion Euros and a slight export growth by +0.6 percent to 298.7 million Euros in 2024. In the first trimester of 2025 (January to April), imports grew by +2.2 percent to 878.5 million Euros, while exports grew by +4 percent to 104.5 million Euros. Crude oil accounted for nearly 99 percent of imports in 2024 - in the first trimester of 2025, 98.6 percent to be precise.
Contact
Eastern Europe, Central Asia, Internationalisation Initiative: wirtschaftbeziehungen-osteuropa-zentralasien@bmwet.gv.at