Determinants of trade flows between Serbia and the Russian Federation: Evidence from the 21st century

The purpose of the paper is to present an analysis of the dynamics and commodity patterns of the Serbian-Russian bilateral trade, over the period 2005-2019. Based on the results, we can conclude that despite intensive and growing trade between both countries, also approved by the TTI index, the trade relations could be further enhanced given the fact that bilateral trade was so far based primarily on the import of Russian gas and oil and export of mostly agricultural products. There are several opportunities, such as ratification of FTA between the Eurasian Economic Union (EAEU) and Serbia and the increase of Serbian food exports due to the imposition of sanctions against Russia followed by a ban on the EU products. Nevertheless, a more comprehensive strategic approach in trade policy towards the Russian Federation should be developed to better promotion of export growth and appropriate support of Serbian exporters in long run