Latvia's trade dynamics with Russia have shifted considerably in recent years, particularly since the onset of geopolitical tensions. Since 2022, imports from Russia have dramatically dropped from 1.8 billion euros to just under 100 million euros, while exports have remained relatively stable around one billion euros. This stark contrast highlights the impact of international relations and sanctions on trade flows between the two nations.

The export landscape has been characterized by a growing demand for consumer goods from Latvia, particularly beverages, alcohol, clothing, footwear, cosmetics, and pharmaceuticals. Notably, the export of clothing has seen a significant rise, increasing by over 40 million euros, while exports of footwear and cosmetics have also benefitted from an upward trend. Furthermore, exports of beverages and alcoholic products, which were already substantial in 2022, continued to increase by nearly 24 million euros, indicating a resilience in certain sectors despite the overall reduction in trade with Russia.

Experts suggest that much of this export surge may not be solely attributable to Latvian production, as a significant portion of these goods may be sourced from neighboring countries such as Lithuania and other EU member states, utilizing Latvia as a transit route. This observation raises questions about the sustainability of such trade practices and the long-term implications for Latvia's economy amid changing geopolitical scenarios. Moreover, the decrease in the number of exporting companies indicates a potential consolidation within the market, which could reflect broader trends in the export strategy and diversification of trade relationships.