Sanctions on Russia likely to disrupt India’s trade with CIS region

The ongoing tussle between Ukraine and Russia can disrupt India’s trade with European Union, Russia and other CIS (Commonwealth Independent States) counties. 

Published: 25th February 2022 09:55 AM  |   Last Updated: 25th February 2022 09:55 AM   |  A+A-

trade, imports, exports, import, export, trade deficit

Image used for representational purpose. (File photo)

Express News Service

NEW DELHI:  The ongoing tussle between Ukraine and Russia can disrupt India’s trade with European Union, Russia and other CIS (Commonwealth Independent States) counties.  India’s total trade with these regions/countries is around USD 90 billion per annum. Experts believe the main problem will arise once the western countries put wider sanctions on Moscow as these sanctions can disrupt shipment movements and supply of fuels.  

“Indian exporters are not overtly reliant on Russia per se (~1% of total exports), so western sanctions on Russia are not expected to destroy any direct demand. Similarly, Russia accounts for about 1% of our import bill. It ranks quite low among nations that supply oil to India. However, the derived risks can become pronounced with heightened crude and metal prices and India’s low inventories. A 3-month long conflict and corresponding high crude prices could inflate our trade deficit by an addition 200 bps at the very least,” said Debopam Chaudhuri, Head, Research and Ratings-TruBoard Partners.

In terms of bilateral trade, India imported worth USD 6.9 billion and exports worth $2.5 billion in the first nine months of FY22 from Russia. It mainly imports fuels, mineral oils, pearls, precious or semi-precious stones, nuclear reactors, boilers, machinery and mechanical appliances. It exports items like pharmaceutical products, electrical machinery and equipment, organic chemicals and vehicles from Russia. 

India’s trade with Ukraine is about USD 372 million in the April-December period. The top commodities exported by Ukraine to India were fats and oils of vegetable origin (73.3%), fertilizers (10.6%), nuclear reactors, boilers, machinery (5.2%). Main Indian commodities imported by Ukraine were pharmaceutical products (32.7%), electrical machinery (7.8%) etc.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp