Trade relations between Russia and the European Union (EU) have a long and complex history, marked by intense economic cooperation, but also by political tensions that often shaped the dynamics of their international trade. These relations are extremely important for both sides for economic, energy and geopolitical reasons. Trade relations intensified in the early 2000s, with an emphasis on energy cooperation. Russia had become the largest supplier of natural gas and oil to the European Union, while the EU had become Russia's largest trading partner. Despite economic interests, political tensions after the annexation of Crimea and Russia's destabilizing actions in eastern Ukraine significantly affected Russia's trade relations with the rest of the world, including the European Union. This paper aims to analise the development of economic relations between Russia and the European Union in recent history as well as to indicate the economic costs of the sanctions imposed on Russia after 2014. The paper also explains how both parties adapted to the new situation. At the very end, possible outcomes of the current situation are analyzed.