Understanding international trade in its simplest form would be the sale and purchase of services and good by companies within different countries. Basically, similar to going shopping in the international marketplace. Better access is gained to goods not normally available within the borders of a specific country. This adds more of a competitive edge to the market. Global events definitively impact the international trade situation. More directly on pricing, trade relations, etc.
Taking the trade system to war
It was February 2022 that saw the economic landscape in the world change as the Russia began the invasion into the Ukraine. The reasoning behind this is intricated and intertwines with historical tensions, military action as well as political ambitions. Initially, the Ukraine formed an important part of the Soviet Union. That is until 1991 when it declared its independence.
Three years into the war, and the U.S. and EU still import billions of euros worth of Russian energy and commodities, ranging from liquefied natural gas to enriched uranium. India this week lashed out at what it called Western double standards, after facing renewed threats from U.S. President Trump over its surging purchases of Russian crude oil.
Levelling the playing field for Europe
Since the beginning of the war, trade between the EU and Russia has drastically contracted due to EU sanctions and import restrictions on some products. Imports from Russia fell by 86% from the first quarter of 2022 through the first quarter of this year, according to the latest data from Eurostat. The EU, however, continues to purchase oil, nickel, natural gas, fertilizer, iron and steel from Russia.
- Oil – Four years ago, Russia was the largest supplier of petroleum products to the EU, but the EU ban on maritime imports of Russian crude oil reduced its share to 2.01% in 2025 from 28.74% in 2021. Oil imports fell to 1.48 billion euros in the first quarter of 2025 from 14.06 billion euros four years ago.
- Natural gas – About 17% of Europe’s gas still comes from Russia, via the TurkStream pipeline and liquefied natural gas (LNG) shipments, down from 48% in 2021’s first quarter. Russian LNG exports to Europe in January-June declined by 13% year on year to 7.9 million tons.
- Iron and Steel – Russia’s share in non-EU iron and steel imports slumped to 7.71% in the first quarter of 2025 from 18.28% four years ago.
Understanding India’s cut of the pie
The international trade between India and Russia has a long history, since 1991 in fact. Over the years the relationship has evolved signifiable. The dynamics have changed a bit since the war began. In contrast to Europe, India’s imports from Moscow surged to $65.7 billion in 2024 from $8.25 billion in 2021, data from the Indian Commerce Ministry website showed.
- Oil – Crude oil has been the biggest driver of the growth in Indian imports from Russia, jumping to $52.2 billion in 2024 from $2.31 billion in 2021.
- Coal products – India’s imports of coal and coal-related products from Russia surged to $3.5 billion from $1.12 billion in 2021.
- Fertilizers – Indian fertilizer imports from Russia rose to $1.67 billion in 2024 from $483 million in 2021.
- U.S. Imports – These fell to $2.50 billion in the first half of 2025 from $14.14 billion four years earlier, according to U.S. Census Bureau and U.S. Bureau of Economic Analysis data. Since January 2022, the United States has imported $24.51 billion of Russian goods.
- Uranium, Plutonium – The U.S. imported enriched uranium and plutonium from Russia worth around $624 million in 2024, down from $646 million in 2021.
- Palladium – Russia exported palladium to the United States for around $878 million in 2024, down from $1.59 billion in 2021.
The casualties of war have been many, and not just on the battlefield. Increased commodity prices, energy market shocks as well as supply chain disruptions are but some of the few involved. Imposed sanctions have added a new level of complexity to global trade policies. The ongoing war is causing continuous impact on the economy as a whole and creates a dynamic set of challenges for all involved, from the policymakers down to the business owners.
GCN.com/Reuters.