Minnesota firms don't export much to Russia, but some are halting shipments

Russia is no longer getting some shipments of snowmobiles from Minnesota.

Polaris, the Medina-based vehicle maker, is among the U.S. companies that last week halted sales or exports to Russia in response to that country's invasion of Ukraine.

Apple said last week it stopped selling iPhones and other products in Russia, and Nike temporarily closed its stores in Russia. Other companies such as Microsoft, Ford and Exxon have suspended products or operations there.

Companies are navigating trade restrictions and political pressure as well as the logistical and financial challenges of continuing to operate in Russia with its economy in turmoil.

A Polaris spokeswoman didn't share how much of the company's sales come from Russia, and added that its decision was not related to sanctions. The company's primary markets are the U.S. and Canada, with other countries, including Russia, accounting for the remaining 14% of its sales, according to company filings.

But for the most part, Russia is not a big business partner for Minnesota.

It was the state's 33rd largest market abroad for goods in 2021 with $65 million in exports. That accounted for a tiny fraction of Minnesota's $24 billion in total exports last year, according to an analysis of trade data by the Minnesota Department of Employment and Economic Development (DEED).

On the flip side, Minnesota imports far less from Russia — about $7 million last year for items such as fertilizer, books and plastics, according to DEED. That number has also been rapidly declining in the last couple of years.

Minnesota's largest export markets, with annual total sales in the billions of dollars, are Canada, China and Mexico. Other countries high up on the list are Japan, South Korea and Germany.

Indeed, the state's exports to Russia declined in the last couple of years. They're down 38% since 2019 while the state's exports overall have otherwise risen 6%.

The largest categories of state exports to Russia last year were medical devices ($16 million) and machinery ($16 million), the latter of which includes computers and lifting machines. Other areas were electrical equipment ($14 million) such as integrated circuits and switches and vehicles ($7 million), which includes snowmobiles.

Medical device maker Medtronic, whose operational headquarters are in the Twin Cities, has a presence in both Russia and Ukraine, where it has nearly 300 employees.

Russia accounts for less than 1% of the company's total sales, Karen Parkhill, Medtronic's chief financial officer, told the Star Tribune shortly before the fighting began Feb. 24.

After the war began, Medtronic said in a statement that it was evaluating the effects of the sanctions closely and would follow legal requirements "while doing our best to mitigate impacts on patients."

Ukraine is a smaller trading partner for Minnesota, ranking 54th as an export market with $18 million in goods sent there last year. The largest categories for exports were vehicles, aircraft (engines and parts), machinery and electrical machinery.

And Ukraine came in 69th in terms of goods imported to Minnesota with $5 million in goods, mostly plastics, honey, machinery and milling products.

There are several Minnesota companies that have offices in Russia or Ukraine, including 3M, Cargill, Medtronic and Ecolab.

There are no known Russian companies operating in Minnesota, according to state officials.

—Staff writer Burl Gilyard contributed to this report.