Bilateral economic relations with Eastern Europe and Central Asia

The region Eastern Europe and Central Asia comprises the Russian Federation (RF), the six Eastern Partnership states Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, and the five Central Asian states Kazakhstan, the 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. Five states belong to the Eurasian Economic Union EEU - Russia, Belarus, Kazakhstan, Armenia and the Kyrgyz Republic.

Since 2014, the EU has imposed sanctions on the Russian Federation for annexing the Ukrainian peninsula of Crimea and supporting pro-Russian rebels in eastern Ukraine. These sanctions include economic sanctions.

In reaction to Russia's full-scale war of aggression on Ukraine, several other packages of sanctions have been imposed since February 25, 2022 to date. These include restrictive measures against numerous other individuals and organizations as well as extensive economic and financial 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.

Current information by the European Union is available at:

Austria's economic relations with the region

In economic terms, most important countries of the region for Austria are Ukraine and Kazakhstan, and, to a decreasing extent, the Russian Federation.

Ukraine has traditionally been Austria's second most important trading partner in the region, with exports reaching 507.1 million Euros (2022) and imports amounting to 1.18 billion Euros (2022) with a decrease in exports by -18.4 percent and a growth in imports by +12.1 percent. In the first four months of 2023, Austria's exports rose by almost +50 percent, while imports decreased slightly by -12.5 percent.

Aggregated Austrian direct investment amounted to 615 million Euros (End 2022, according to Austrian National Bank - OeNB data). Before Russia’s war, Austria ranked sixth among foreign investors in Ukraine. Most of the approx. 200 Austrian companies engaged in Ukraine have maintained their activities in the country, notwithstanding challenging conditions. Recovery and reconstruction hold potential for Austrian companies.

The EU and its member states have made available around 53 billion Euros in financial, humanitarian, immediate and budget aid as well as military support. The Commission has provided 685 million Euros for humanitarian relief programmes in Ukraine, 200 million Euros out of this sum for 2023.

Current information on reconstruction and on support by the EU is available at:

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). According to data for 2022 by Statistik Austria, exports shrank by -8 percent to 1.8 billion Euros, while imports grew by +76.7 percent to 8.2 billion Euros - mainly because of soaring energy prices. Natural gas accounted for nearly 90 percent of imports from the Russian Federation. In the first four months of 2023, exports decreased by -25 percent and imports by nearly -40 percent with a gas share of over 93 percent.

Aggregated Austrian investment in the Russian Federation amounted to nearly 6 billion Euros, 2022 having been the third consecutive year with reduced investment; in 2022: -561 million Euros. (End 2022, according to Austrian National Bank - OeNB data).

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 +15.5 percent to 1.6 billion Euros and an export growth by +36.6 percent to 231.9 million Euros in 2022. In the first four months of 2023, imports shrank by -28.5 percent to 538.5 million Euros, while exports grew by +50.6 percent to 100.4 million Euros.

Aggregated Austrian direct investment in Kazakhstan amounted to 104 million Euros (End 2022, according to Austrian National Bank - OeNB data).

Contact

Eastern Europe, Central Asia, Internationalisation Initiative: wirtschaftbeziehungen-osteuropa-zentralasien@bmaw.gv.at